Tax rate used in calculating Maine state tax for year 2020

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Withholding Formula (Maine Effective 2020)

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 = $4,300 x Number of Exemptions

6. If the annualized income determined under Step 1 is $82,900 or less for a single taxpayer, the Maine standard deduction amount for withholding purposes is $9,550. If the annualized income determined under Step 1 is $165,800 or less for a married taxpayer, the Maine standard deduction amount for withholding purposes is $21,950. If annualized income determined under step 1 is $157,900 or more for a single taxpayer or $315,800 or more for a married taxpayer, the Maine standard deduction amount is $0. If the annualized income determined under Step 1 is between $82,900 and $157,900 for a single taxpayer or between $165,800 and $315,800 for a married taxpayer, calculate the Maine standard deduction amount as follows:
   Single Taxpayers
   $9,550*(($157,900 - Amount from Step 1) ÷ $75,000)
   Married Taxpayers
   $21,950*($315,800 - Amount from Step 1) ÷ $150,000)

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

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	$      22,200	$    0	plus	5.80%	$         0
22,200	52,600	1,288	plus	6.75%	22,200
52,600	and over	3,340	plus	7.15%	52,600




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	$      0	$      44,450	plus	5.80%	$        0
44,450	105,200	2,578	plus	6.75%	44,450
105,200	and over	6,679	plus	7.15%	105,200



8. 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.