Tax rate used in calculating Maine state tax for year 2024 | 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 2024) - 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 = $5,000 x Number of Exemptions - If the annualized income determined under Step 1 is $97,150 or less for a single taxpayer, the Maine standard deduction
amount for withholding purposes is $11,750. If the annualized income determined under Step 1 is $194,300 or less for a
married taxpayer, the Maine standard deduction amount for withholding purposes is $26,350.
If annualized income determined under step 1 is $172,100 or more for a single taxpayer or $344,300 or more for a married
taxpayer, the Maine standard deduction amount is $0.
If the annualized income determined under Step 1 is between $97,150 and $172,150 for a single taxpayer or between
$194,300 and $344,300 for a married taxpayer, calculate the Maine standard deduction amount as follows:
Single Taxpayers
$11,750*(($172,150 - Amount from Step 1) $75,000)
Married Taxpayers
$26,350*($344,300 - 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.
| 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 | $
26,050 | $
0 | plus | 5.80% | $
0 | | 26,050 | 61,600 | 1,511 | plus | 6.75% | 26,050 | | 61,600 | and over | 3,911 | plus | 7.15% | 61,600 | | 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 | $
52,100 | $
0 | plus | 5.80% | $
0 | | 52,100 | 123,250 | 3,022 | plus | 6.75% | 49,050 | | 123,250 | and over | 7,825 | plus | 7.15% | 123,250 | - 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.
|
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
