Tax rate used in calculating Maine state tax for year 2023
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State Abbreviation:
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ME
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State Tax Withholding
State Code:
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23
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Acceptable Exemption
Form:
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W-4 or W-4ME
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Basis For Withholding:
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State Exemptions
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Acceptable Exemption
Data:
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S, M, N / Number of Allowances
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TSP Deferred:
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Yes
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Special Coding:
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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.
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Additional Information:
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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).
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Withholding Formula (Maine Effective 2023)
- Subtract the nontaxable biweekly Thrift Savings
Plan contribution from the gross biweekly wages.
- 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.
- Add the taxable biweekly fringe benefits (taxable
life insurance, etc.) to the amount computed in step 2 to obtain the
adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages by 26
to obtain the annual wages.
- 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 = $4,700 x Number of Exemptions
- If the annualized income determined under Step 1 is $91,500 or less for a single taxpayer, the Maine standard deduction
amount for withholding purposes is $11,000. If the annualized income determined under Step 1 is $183,050 or less for a
married taxpayer, the Maine standard deduction amount for withholding purposes is $24,850.
If annualized income determined under step 1 is $166,500 or more for a single taxpayer or $333,050 or more for a married
taxpayer, the Maine standard deduction amount is $0.
If the annualized income determined under Step 1 is between $91,500 and $166,500 for a single taxpayer or between
$183,050 and $333,050 for a married taxpayer, calculate the Maine standard deduction amount as follows:
Single Taxpayers
$11,000*(($166,500 - Amount from Step 1) ÷ $75,000)
Married Taxpayers
$24,850*($333,050 - Amount from Step 1) ÷ $150,000)
- Apply the taxable income computed in step 6 to the
following table to determine the annual Maine income tax withholding.
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Tax Withholding Table
Single
(Filing Status S)
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If the Amount
of
Taxable Income Is:
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The Amount of
Maine
Tax Withholding Should Be:
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Over:
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But Not
Over:
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Of Excess
Over:
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$
0
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$
24,500
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$
0
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plus
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5.80%
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$
0
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24,500
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58,050
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1,421
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plus
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6.75%
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24,500
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58,050
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and over
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3,686
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plus
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7.15%
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58,050
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Married
(Filing Status M)
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If the Amount
of
Taxable Income Is:
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The Amount of
Maine
Tax Withholding Should Be:
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Over:
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But Not
Over:
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Of Excess
Over:
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$
0
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$
49,050
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$
0
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plus
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5.80%
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$
0
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49,050
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116,100
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2,845
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plus
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6.75%
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49,050
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116,100
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and over
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7,371
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plus
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7.15%
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116,100
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- 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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in house payroll tax solution for Maine small businesses here.
How to Calculate Maine State Income Tax Withholdings Automatically
How to Create After the Fact Paychecks and Generate the Paystubs