Maine taxes federal AGI at 5.8%, 6.75% and 7.15%, less a $15,700 standard deduction for a single filer and $5,300 per person in exemptions. The deduction starts shrinking above $102,250 and is gone by $177,250. Neither federal deduction reduces Maine tax: Maine is tied to the federal code as it stood on 31 December 2024, and the provisions it did adopt early do not include tips or overtime.
What it means on a real paycheck
Take a single filer earning $50,000 a year, $8,000 of it in tips. Against the same person with no tips to declare, the federal deduction is worth $960.
In Maine it is worth nothing extra. The state bill is identical either way, so $960 is the whole of it.
How Maine works out the tax
Maine charges graduated rates from 5.8% up to 9.15%, across four bands, after a standard deduction that starts at $15,700 for a single filer and shrinks as you earn more and an exemption of $5,300 a person. It begins from your federal adjusted gross income and applies its own reliefs from there.