What is the Maine state income tax rate in 2026?
Maine taxes income in 3 brackets from 5.80% to 7.15% in 2026; the top rate starts at $64,850 of taxable income for a single filer and $129,750 for a married couple filing jointly, and a further 2.00% applies to taxable income over $1,000,000. Example: a married couple, both 70, with $40,000 of Social Security, a $30,000 private pension and $30,000 of IRA withdrawals ($100,000 in all; the pension and IRA money split evenly between them) owes $0 of Maine income tax (0.0% of their income) and $5,087 of federal tax; a single 62-year-old with $24,000 of Social Security, an $18,000 pension and $18,000 of IRA withdrawals ($60,000 in all) owes $0 to Maine and $4,111 federal. The schedule, how Maine treats each kind of retirement income, and its local taxes follow.
| Rate | Single | Married filing jointly |
|---|---|---|
| 5.80% | $0 to $27,400 | $0 to $54,850 |
| 6.75% | $27,400 to $64,850 | $54,850 to $129,750 |
| 7.15% | over $64,850 | over $129,750 |
How Maine taxes retirement income in 2026
| Standard deduction or personal exemption | $15,700 single, $31,400 married filing jointly, $23,550 head of household. The standard deduction includes $2,050 more for a single or head-of-household filer 65 or older, and $1,650 more for each spouse 65 or older on a married return; the phase-out below applies to the whole deduction. The standard deduction phases out ratably as income rises above $102,250 (single) and $204,550 (MFJ), reaching zero $75,000 and $150,000 above those points; head of household from $153,400 over $112,500. Personal exemption, subtracted in addition: $5,300 single, $10,600 MFJ. The personal exemption phases out ratably as income rises above $341,000 (single), $375,050 (head of household), $409,150 (MFJ) and $204,575 (married filing separately), reaching zero $125,000 above those points ($62,500 for married filing separately). (Maine Revenue Services; rules) |
|---|---|
| Social Security | Social Security benefits are fully exempt: none of the federally taxable amount enters the state base. (Maine Revenue Services; rules) |
| Pensions, annuities and IRA/401(k) withdrawals | Pension, annuity and IRA/401(k) distributions: up to $49,824 excluded per taxpayer ($99,648 on a joint return) at any age. When income exceeds $127,950 (single) / $255,900 (MFJ), the exclusion phases out in proportion over the next $100,000 ($100,000 MFJ, $50,000 married filing separately). (Maine Revenue Services; rules) |
| Capital gains | Net long-term gain is taxed as ordinary income. Short-term gains are ordinary income. (Maine Revenue Services; rules) |
Local income taxes: none in Maine. The local income taxes the tax engine computes for 2026 are in Delaware, Indiana, Iowa, Kentucky, Maryland, Michigan, Missouri, New York, Ohio, Oregon and Pennsylvania.
Your whole 2026 return in Maine, federal and state together, ends in a refund or an amount owed: 2026 tax return calculator (free) → What five typical retiree households owe or get back in Maine and every other state: the 2026 tax return study.
Figures for 2026 from QuantCalc’s open tax engine (federal 2.6.1, state 1.28.0), for a full-year resident. An estimate, not tax advice: credits, itemized deductions and rules this page does not ask about change a real return. Every Maine rule with its official sources: Maine rules and sources.
In QuantCalc's 51-state planner study — one married couple, both 60, $2M, $80,000 a year to spend after tax, 10,000 paths per jurisdiction — the median path in Maine pays $162,597 of federal and state income tax and Medicare IRMAA over 30 years, with no Maine state income tax in any year. That ranks #1 of 51 (tied with 15 others) by lifetime tax (1 = lowest). The plan succeeds in 84.05% of paths. State tax is part of the optimization here — the playbook below shows the federal-state-ACA stack.
The ME verdict
For a retiree planning withdrawals in 2026, Maine is one of the higher-burden states for retirees, especially on traditional pre-tax withdrawals. A large pension and IRA exclusion, and a $6.41M estate exemption.
Maine reaches 9.15% only above $1,000,000 of taxable income: a 7.15% bracket rate plus a 2.00% surcharge on the excess. None of the conversions modelled on this page comes near that threshold, so the surcharge adds nothing to their state tax.
Maine allows a retirement-income exclusion of up to $99,648 for a couple at any age. A traditional→Roth conversion does not draw on it, so converted dollars are taxed in full at the state rate even for a household that is otherwise sheltered.
Worked example: $30k Roth conversion in Maine
Consider a married couple age 58 in Maine with $75,000 of wages (their MAGI), both on ACA Marketplace coverage. They want to convert $30,000 from a traditional IRA to a Roth. The Maine state tax on that conversion is $1,818 — 6.1% of the amount converted. Federal income tax adds another $3,600 — the whole conversion is taxed in the federal 12% bracket. And because the conversion pushes their MAGI to $105,000 — over the 400% FPL cliff of $84,600 — they lose their full ACA premium tax credit, $26,455 a year at Maine's average benchmark Silver premium. Total cost of the $30,000 conversion: $31,873, or an effective 106.2% marginal rate. Each Maine tax figure for a conversion on this page is QuantCalc's state tax engine run on the couple's whole 2026 Maine return twice, without the conversion and with it, with every amount split evenly between the two spouses, so Maine's own brackets, deductions, exemptions and credits are all applied. The federal-state-ACA stack matters in Maine.
Cost breakdown
| Component | Amount |
|---|---|
| Federal income tax (12% bracket) | $3,600 |
| Maine state income tax | $1,818 |
| ACA premium tax credit clawback | $26,455 |
| Total cost on $30,000 conversion | $31,873 (106.2% effective) |
Scenario B (high-tax): cliff-protective $15k conversion in Maine
A Maine couple aged 58 with $66K of wages (their MAGI), both on a Silver-tier Marketplace plan converts only $15,000, which keeps their MAGI at $81,000, under the $84,600 400% FPL cliff. Staying under it matters because crossing it in Maine layers state tax, federal tax, AND the loss of the whole premium tax credit ($25,857 a year for this couple at $81,000) on top of each other. State tax on $15k: $870 — 5.8% of the amount converted. Federal income tax added: $1,800 (the whole conversion is taxed in the federal 12% bracket). PTC preserved. Total: $2,670, an effective rate of 17.8%. In a high-tax state, the optimization is small annual conversions over many years — never a single 'big year' if Marketplace coverage is in play.
What the planner's Monte Carlo says about Maine
QuantCalc Research ran one married couple through QuantCalc's retirement planner in each of the 51 jurisdictions: both 60, $2,000,000 ($1,400,000 traditional, $600,000 Roth), a 60/40 portfolio, $80,000 a year to spend after tax for 30 years, no Social Security, 10,000 paths each. The planner's federal and state tax engines price every year, and it picks the withdrawals and Roth conversions. Here is Maine beside the lowest- and highest-tax results:
| Metric | Maine | No state tax (16 jurisdictions) | Oregon (highest) |
|---|---|---|---|
| Median lifetime tax, federal + state + IRMAA (30y) | $162,597 | $162,597 | $309,718 |
| State income tax (30y, sum of yearly medians) | $0 | $0 | $146,914 |
| State income tax in the first year (age 60) | $0 | $0 | $5,838 |
| 30-year success rate | 84.05% | 84.05% | 80.61% |
| Median balance at 90 | $2,153,150 | $2,153,150 | $1,801,272 |
| Rank by lifetime tax (of 51, 1 = lowest) | #1 | #1 | #51 |
Across all 51 jurisdictions the success rate runs from 80.61% to 84.05%: for this couple the state changes the tax bill far more than the odds of the money lasting. Dollars are today's dollars. Source: QuantCalc 51-State Retirement Monte Carlo (v2026.3, re-run 2026-10-12) — 510,000 planner paths, methodology and dataset released CC-BY-4.0. Every jurisdiction's row uses the same household and the same market paths; only the state of residence changes.
How Maine treats capital gains in retirement
Maine taxes long-term capital gains as ordinary income at the same top bracket rate (7.15%). That stacks on top of federal LTCG (0%/15%/20%) and the 3.8% NIIT for high earners. A 'free' federal 0% LTCG harvest still costs you up to 7.15% at the state level — meaningful in this jurisdiction, particularly during Roth-conversion years when your MAGI is already elevated.
Why the ACA cliff hits hard in Maine
The 400% federal-poverty-level cliff is federal, not state-specific — but its dollar impact depends on the benchmark Silver-plan premium in your county. Maine's Marketplace pricing and your household composition determine the size of the subsidy at risk. A couple aged 58 with MAGI of exactly $84,600 still has $25,499 a year of premium tax credit at Maine's average benchmark Silver premium, and all of it is on the line. With the 2021–2025 enhanced credit expired, $1 of additional MAGI above 400% FPL eliminates the entire credit.
For 2026 the 400% FPL threshold is:
Roth conversion strategy for Maine
The ME-specific playbook depends on tier:
- Identify your cliff distance. Compute MAGI from all income sources (wages, capital gains, interest, dividends, traditional withdrawals). Find your headroom under 400% FPL. Use the live cliff widget above for a quick check.
- Stay under the cliff if you can. In Maine at 7.15%, the marginal cost of going over the cliff is federal tax + state tax + full PTC clawback. The break-even conversion size is smaller than in tax-free states.
- If you must go over, convert big. Once you've crossed the cliff, additional conversion dollars only cost federal + state tax (no incremental PTC loss). A "rip the bandage" conversion year can be efficient if you have many traditional dollars to move.
- Coordinate with capital gains and the 0% LTCG bracket. Maine taxes long-term capital gains as ordinary income at the same top bracket rate (7.15%). That stacks on top of federal LTCG (0%/15%/20%) and the 3.8% NIIT for high earners. A 'free' federal 0% LTCG harvest still costs you up to 7.15% at the state level — meaningful in this jurisdiction, particularly during Roth-conversion years when your MAGI is already elevated.
- Plan ahead for IRMAA. The IRMAA Medicare premium surcharge has a 2-year lookback. A Maine resident in their early 60s converting today will see IRMAA implications at 65. See RMD + IRMAA calculator for the lookback math.
State tax basics for Maine retirees
| Question | Maine |
|---|---|
| State income tax | 9.15% top marginal |
| Number of brackets | 3 |
| Social Security taxed | No |
| 401(k) / Traditional IRA taxed | Yes |
| Retirement-income exclusion (couple) | $99,648 at any age |
| Roth conversion draws that exclusion | No |
| State estate / inheritance tax | Yes |
| Retirement-friendliness tier | high tax |
| Notable feature | a large pension and IRA exclusion, and a $6.41M estate exemption |
| 30-yr planner success rate | 84.05% |
| Median 30-yr tax, federal + state + IRMAA (rank) | $162,597 (#1/51) |
Model your full Maine retirement scenario
Free Monte Carlo (100 paths per run; 10,000 with PRO) with state-specific tax engine, ACA cliff, Roth conversion optimizer, IRMAA lookback — free, no signup.
Run a free simulation →What a year-end move does to your Maine and federal tax in 2026
Each move changes three bills at once: the federal return, the Maine return and, for anyone on Medicare, the IRMAA surcharge the 2026 income sets for 2028. Example: a married couple, both 72, with a $40,000 pension, $50,000 of Social Security, a $30,000 IRA withdrawal and $10,000 of long-term gains already realized in 2026, the pension, the IRA money and the conversion split evenly between them on the state return. Each row is that year with one move made, against the same year without it (negative = less tax).
| Move (by December 31, 2026) | Federal tax | Maine tax | IRMAA in 2028 |
|---|---|---|---|
| Convert $25,000 to a Roth IRA | $3,165 | $583 | $0 |
| Send $10,000 of the IRA withdrawal to charity as a QCD | −$1,200 | $0 | $0 |
| Harvest a $5,000 loss against the year's gains | $0 | $0 | $0 |
An estimate from QuantCalc’s open tax engine (federal 2.6.1, state 1.28.0) for the 2026 tax year. Not tax advice: your return depends on facts this page does not ask about, so check a move with your tax preparer or custodian before acting. IRMAA uses the 2026 tiers for two people on Medicare; the 2028 tiers are not published yet. How the engine computes each line, with its official source: federal, Maine.
Related calculators and reading
- All-states retirement tax comparison — see Maine alongside the other 50 jurisdictions.
- Maine minimum wage 2026 — the hourly rate, scheduled increases and take-home pay after tax, from the official sources.
- State Retirement Tax Data 2026 — the per-jurisdiction rate, exclusion and Social Security figures behind this page, as CSV and JSON.
- ACA Subsidy Cliff Optimizer — find the largest Roth conversion that keeps you under 400% FPL.
- Roth Conversion Optimizer — bracket-fill vs. fixed-amount strategy comparison.
- RMD + IRMAA Calculator — Medicare premium surcharge based on 2-year-old MAGI.
- Safe Withdrawal Rate Calculator — sequence-of-returns-aware withdrawal planning.
- Research: 51-State 30-year Monte Carlo (2026) — full ranking and dataset.
- Research: Monte Carlo ACA Cliff 2026 — 80,000-path study of the cliff cost.
FAQ
What is the Maine state income tax rate in 2026?
Maine taxes income in 3 brackets from 5.80% to 7.15% in 2026; the top rate starts at $64,850 of taxable income for a single filer and $129,750 for a married couple filing jointly, and a further 2.00% applies to taxable income over $1,000,000. The full schedule and Maine's deductions are on this page (Maine Revenue Services; rules).
How much state income tax does a retiree pay in Maine?
It depends on the kind of income. In 2026, a married couple, both 70, with $40,000 of Social Security, a $30,000 private pension and $30,000 of IRA withdrawals ($100,000 in all; the pension and IRA money split evenly between them) owes $0 of Maine tax, and a single 62-year-old with $24,000 of Social Security, an $18,000 pension and $18,000 of IRA withdrawals ($60,000 in all) owes $0. Federal tax comes on top: $5,087 and $4,111.
Does Maine tax Social Security benefits?
No. Social Security benefits are fully exempt: none of the federally taxable amount enters the state base. (Maine Revenue Services; rules)
Does Maine tax pensions, 401(k) and IRA withdrawals?
Pension, annuity and IRA/401(k) distributions: up to $49,824 excluded per taxpayer ($99,648 on a joint return) at any age. When income exceeds $127,950 (single) / $255,900 (MFJ), the exclusion phases out in proportion over the next $100,000 ($100,000 MFJ, $50,000 married filing separately). (Maine Revenue Services; rules)
Does Maine have local income taxes?
No. No county, city or school district in Maine levies an income tax that the tax engine computes for 2026.
Does Maine tax Roth conversions?
Yes. A $30,000 conversion by a couple aged 58 with $75,000 of wages adds $1,818 of Maine tax — 6.1% of the amount converted — on top of federal tax and any ACA subsidy clawback. Each Maine tax figure for a conversion on this page is QuantCalc's state tax engine run on the couple's whole 2026 Maine return twice, without the conversion and with it, with every amount split evenly between the two spouses, so Maine's own brackets, deductions, exemptions and credits are all applied.
What is Maine's 30-year Monte Carlo retirement success rate?
In QuantCalc's 51-state planner study, one married couple (both 60, $2M, 60/40, $80,000 a year to spend after tax, 10,000 paths) succeeds in 84.05% of paths in Maine; across all 51 jurisdictions the rate runs from 80.61% to 84.05%. The median path pays $162,597 of federal and state income tax and IRMAA over 30 years, $0 of it Maine state income tax.
What is the ACA cliff in Maine for 2026?
The ACA premium-tax-credit cliff is a federal threshold, not state-specific. For a household of two in 2026, it sits at 400% of the federal poverty level — $84,600. Crossing it by even $1 of MAGI eliminates the full subsidy now that the 2021-2025 enhanced credit has expired.
Is Maine a good state to retire for tax purposes?
Maine is one of the higher-burden states for retirees, especially on traditional pre-tax withdrawals. A large pension and IRA exclusion, and a $6.41M estate exemption. In our planner study it ranks #1 of 51 (tied with 15 others) by median lifetime tax (1 = lowest).
Does Maine have a state estate or inheritance tax?
Yes — Maine has a state-level estate or inheritance tax in addition to the federal estate tax. Plan transfers accordingly.
How does Maine tax capital gains?
Maine taxes long-term capital gains as ordinary income at the same top bracket rate (7.15%). That stacks on top of federal LTCG (0%/15%/20%) and the 3.8% NIIT for high earners. A 'free' federal 0% LTCG harvest still costs you up to 7.15% at the state level — meaningful in this jurisdiction, particularly during Roth-conversion years when your MAGI is already elevated.
Last updated 2026-10-12. State income tax figures reflect the 2026 schedule published by Maine's tax authority. ACA poverty-level figures: the 2025 HHS poverty guidelines for the 48 contiguous states and DC ($15,650 for one person, plus $5,500 for each additional person; 90 FR 5917), which set 2026 Marketplace coverage. Premium tax credit estimates use Maine's average benchmark Silver premium. Monte Carlo numbers from the QuantCalc 51-state planner study (v2026.3, re-run 2026-10-12, CC-BY-4.0). This page is educational. Not tax, legal, or financial advice — consult a qualified advisor.