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How to Calculate 2016 Maine State Income Tax by Using State Income Tax Table

1. Find your income exemptions

2. Find your pretax deductions, including 401K, flexible account contributions ...

3. Find your gross income

4. Check the 2016 Maine state tax rate and the rules to calculate state income tax

5. Calculate your state income tax step by step

6. If you want to simplify payroll tax calculations, you can download ezPaycheck payroll software, which can calculate federal tax, state tax, Medicare tax, Social Security Tax and other taxes for you automatically. You can try it free for 30 days, with no obligation and no credt card needed.

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  MAINE STATE TAX TABLES

Tax rate used in calculating Maine state tax for year 2016

State Abbreviation:

ME

State Tax Withholding State Code:

23

Acceptable Exemption Form:

W-4 or W-4ME

Basis For Withholding:

State Exemptions

Acceptable Exemption Data:

S, M, N / Number of Allowances

TSP Deferred:

Yes

Special Coding:

Determine the Total Number Of Allowances Claimed field as follows:
First Position - S = Single; M = Married;
Note: Previous Filing status N (Married - Filing Jointly) defaults to S (Single)
Second and Third Positions - Enter the number of allowances claimed. If less than 10, precede with a zero.

Additional Information:

If the W-4 is used, code it as a state tax document. An employee who had a filing status of Married, Filing Jointly (N) and wants to claim Married (M) must complete a new W-4 with filing status (M).




Withholding Formula (Maine Effective 2016)
  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.

  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in step 1.

  3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.

  4. Multiply the adjusted gross biweekly wages by 26 to obtain the annual wages.

  5. Determine the exemption allowance by applying the following guideline and subtract this amount from the result of step 4 to determine the taxable income.

    Exemption Allowance = $4,050 x Number of Exemptions

  6. A phase out of the taxpayer's Maine standard deduction starts when annualized income reaches $70,000 for single taxpayers and $140,000 for married taxpayers filing joint returns. To factor in the phase out, complete the following and add the result to the amounts calculated above:
    Single Taxpayers
    [(Amount from step 5 - $67,150) / $75,000] * $11,600
    Married Taxpayers
    [(Amount from step 5 - $137,150) / $150,000] * $23,200

  7. Apply the taxable income computed in step 6 to the following table to determine the annual Maine income tax withholding.

  8. Tax Withholding Table
    Single
    (Filing Status S)

    If the Amount of
    Taxable Income Is:

    The Amount of Maine
    Tax Withholding Should Be:


    Over:

    But Not
    Over:

    Of Excess
    Over:

    $         0
    $      8,750
    $    0
    plus
    0.0%
    $         0
         8,750
            29,800
          0
    plus
    5.8%
         8,650
        29,800
          46,250
        1,221
    plus
    6.75%
         29,800
        46,250
          and over
        2,331
    plus
    7.15%
         46,250

    Married
    (Filing Status M)

    If the Amount of
    Taxable Income Is:

    The Amount of Maine
    Tax Withholding Should Be:


    Over:

    But Not
    Over:

    Of Excess
    Over:

    $          0
    $      20,350
    $      0
    plus
    0.0%
    $        0
         20,350
          62,450
            0
    plus
    5.8%
        20,350
        62,450
          95,350
         2,442
    plus
    6.75%
      62,450
        95,350
          and over
         4,663
    plus
    7.15%
      95,350

  9. Divide the annual Maine income tax withholding determined in step 6 by 26 and round to the nearest dollar to obtain the biweekly Maine income tax withholding.

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