Looking Forward Part II: Maine tax rates changing in 2016
Not only have there been changes to the due dates for the 2016 returns, see “Looking Forward! Due Dates Changing in 2017!” but Maine has also changed the tax rates and tax brackets. Please find below tables for the current rates and the 2016 rates. The rates have gone up for the first two income brackets and down for the highest bracket, but please note the taxable income ranges have changed.
|
CURRENT RATE SYSTEM FOR SINGLE FILERS & MARRIED FILING SEPERATE |
|
|
Taxable Income Range |
Tax Rates |
| Less than $5,200 | 0% |
| $5,200 up to $20,900 | 6.5% of excess over $5,200 |
| $20,900 or more | 7.95% of excess over $20,900 plus $1,021 |
|
2016 RATE SYSTEM FOR SINGLE FILERS & MARRIED FILING SEPERATE |
|
|
Taxable Income Range |
Tax Rates |
| Less than $21,050 | 5.8% |
| $21,050 to $37,500 | 6.75% of excess over $21,050 plus $1,221 |
| $37,500 or more | 7.15% of excess over $37,500 plus $2,331 |
|
CURRENT RATE SYSTEM FOR HEAD OF HOUSEHOLD |
|
|
Taxable Income Range |
Tax Rates |
| Less than $7,850 | 0% |
| $7,850 to $31,350 | 6.5% of excess over $7,850 |
| $31,350 or more | 7.95% of excess over $31,50 plus $1,528 |
|
2016 RATE SYSTEM FOR HEAD OF HOUSEHOLD |
|
|
Taxable Income Range |
Tax Rates |
| Less than $31,550 | 5.8% |
| $31,550 to $56,250 | 6.75% of excess over $31,550 plus $1,830 |
| $56,250 or more | 7.15% of excess over $56,250 plus $3,497 |
| CURRENT RATE SYSTEM FOR MARRIED FILING JOINTLY | |
|
Taxable Income Range |
Tax Rates |
| Less than $10,450 | 0% |
| $10,450 to $41,850 | 6.5% of excess over $10,450 |
| $41,850 or more | 7.95% of excess over $41,850 plus $2,041 |
|
2016 RATE SYSTEM FOR MARRIED FILING JOINTLY |
|
|
Taxable Income Range |
Tax Rates |
| Less than $42,100 | 5.8% |
| $42,100 to $75,000 | 6.75% of excess over $42,100 plus $2,442 |
| $75,000 or more | 7.15% of excess over $75,000 plus $4,663 |
For more information on the recent tax law changes passed as part of the Maine budget please see:
http://www.maine.gov/budget/documents/2016-2017BiennialBudgetLanguagea1-9-15.pdf
We will have more information coming regarding the changes to deductions and credits that were also passed as part of the budget.