Maine’s 2025 Income Tax Brackets Adjusted for Inflation
This year, residents of Maine will find themselves categorized into three income brackets when they file their state tax returns in April 2025. However, the thresholds have been updated to account for inflation, which means your tax bracket could shift even if your income stays the same.
The tax rates for each tier remain unchanged from the previous year: 5.8% for the first tier, 6.75% for the second, and 7.15% for the third. It’s important to note that only the portion of your income that falls within a specific bracket is taxed at that rate—so, not your entire income is subject to that rate.
The Maine Department of Revenue adjusts these boundaries annually, based on cost-of-living calculations derived from Bureau of Labor Statistics data. The new threshold amounts will be rounded down to the nearest increment of $50.
For single filers in 2025, the lowest bracket will now recognize incomes up to $26,800, which is an increase of $750 from last year. On the higher end, the top threshold begins at $63,450, reflecting an increase of $2,450.
Interestingly, data from the Department of Revenue shows that nearly one-third of Maine taxpayers reported negative taxable income for 2024, which qualifies them for a 0% state income tax. According to Sharon Huntley, a spokesperson for the Department of Government and Financial Services, Social Security income is not taxed in Maine, and there are relatively large standard and pension deductions available.
“There’s a significant ‘zero tier’ for seniors due to these deductions and exemptions,” Huntley mentioned in an email.
Looking to the future, there’s some chatter about potential changes in the state’s income tax situation by year’s end. The legislature is currently considering proposals that would introduce a tax bracket for those earning over $1 million annually. This plan would impose a 2% surcharge on income exceeding $1 million for single filers and married filers filing separately, $1.5 million for heads of households, and $2 million for married filers filing jointly.
Additionally, last October, Governor Janet Mills instructed the state tax assessor to withhold certain provisions from President Donald Trump’s “Big Beautiful Bill” related to exemptions for tips and overtime pay until state legislators can weigh in.
