★ Maine 2026 Compliance Year

Maine Payroll Compliance

Every rate, wage base, and local override Maine employers need for 2026 — sourced from Maine Revenue Services and the Dept. of Labor — including the Portland and Rockland wage ordinances, and a Paid Family & Medical Leave program that began paying real claims this May.

Last reviewed: July 2026 · Sources: maine.gov/revenue, maine.gov/labor, maine.gov/paidleave
State Min Wage
$15.10
Portland $16.75
Income Tax
5.80%–7.15%
3 brackets
Paid Leave
1.0%
benefits live May 2026
SUI Wage Base
$12,000
Schedule A
New Employer SUI
2.54%
flat entry rate
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Minimum Wage & Hours

Maine’s minimum wage is $15.10/hour for 2026, adjusted automatically each January 1 by the cost-of-living index under a 2016 law. New for 2026: the state minimum wage now applies to agricultural workers for the first time, closing a long-standing exemption.

Item2026 ValueNotes
Statewide minimum wage$15.10/hrAutomatic COLA adjustment each January 1
Tipped cash wage$7.55/hrTip credit up to $7.55; monthly tip threshold $191
Agricultural workers$15.10/hrCovered by state minimum wage for the first time in 2026
Exempt salary threshold$871.16/wk ($45,300.32/yr)Rises automatically alongside the minimum wage
Overtime rule40 hrs/weekFederal FLSA; no separate state daily overtime rule
Statewide minimum wage
$12.75 → $15.10 since 2022
Automatic annual COLA adjustments under a 2016 law — no legislative vote required.
$12.75
$13.80
$14.15
$14.65
$15.10
20222023202420252026
Per 26 M.R.S. §664, indexed to the Consumer Price Index each January 1.
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Portland & Rockland Local Wage Ordinances

Portland runs the highest municipal minimum wage in Maine, and a November 2025 ballot measure locks in further scheduled increases. Rockland’s ordinance only applies to employers with more than 25 employees — a size threshold most Maine local ordinances don’t use.

Jurisdiction2026 RateNotes
Portland$16.75/hrTipped: $7.75/hr; voter-approved schedule continues rising
Rockland$16.00/hrApplies only to employers with 26+ employees
Rest of Maine$15.10/hrStatewide COLA-indexed rate applies
2026 minimum wage by jurisdiction
Portland leads, but the state floor isn’t far behind
Unlike California or Washington, Maine’s local premium over the state rate is relatively modest.
Portland
$16.75
Rockland (26+ employees)
$16.00
Maine statewide
$15.10
Bars scaled to Portland’s $16.75. Portland and Rockland are highlighted in deep blue; the statewide reference floor is muted.
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Remote work follows the employee’s physical location
An employee working from home in Portland must be paid the Portland minimum wage even if their employer has no physical office there. Maine DOL guidance treats a home office — including for domestic employees like nannies or caregivers — as the employer’s place of business for wage purposes. Enforcement follows whichever jurisdiction offers the employee the greatest protection.
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State Income Tax Withholding

Maine uses three graduated brackets — 5.80%, 6.75%, and 7.15% — with thresholds adjusted for inflation each September by Maine Revenue Services.

Item2026 ValueNotes
Bracket range5.80% – 7.15%3 brackets; thresholds published each September 15 by MRS
Personal exemption$5,300Per exemption claimed
Standard deduction (single)$15,300Married filing jointly: $30,600
Supplemental wage rate5% flatOptional method for bonuses/commissions paid separately from regular wages
Semiweekly deposit threshold$18,000 lookback12-month lookback period ending June 30 of the prior year
Local income taxNoneNo Maine city or town imposes one
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Paid Family & Medical Leave (PFML)

✅ Benefits live since May 1, 2026

Maine PFML contributions began January 1, 2025, and real employee claims started paying out on May 1, 2026 — making Maine one of the newest active PFML programs in the country. Employer size (15+ vs. fewer) determines both the rate and how much can be passed to employees.

Item2026 ValueNotes
Rate (15+ employees)1.0% totalEmployer may deduct up to 0.5% from employee wages
Rate (under 15 employees)0.5% totalEmployer may deduct up to 100% from employee wages
Wage capSocial Security wage base$184,500 for 2026
Leave durationUp to 12 weeksMedical, parental, family care, military family, or safe leave
Job protection120 consecutive daysEmployment tenure required before job protection applies
Eligibility6× State Avg. Weekly WageSAWW is $1,249.12 for Jul 2026–Jun 2027
Private plan optionAvailableState-approved substitution exempts the employer from state premiums
2026 PFML rate by employer size
Small employers pay half the rate
The 15-employee threshold (measured each October 1) doubles the total contribution rate.
15+ employees (total)
1.0%
Under 15 employees (total)
0.5%
Employer size is determined each October 1 based on a 12-month lookback period ending September 30.
Benefit tax treatment gets more complex in 2027
For 2026, medical leave benefits funded by employer premiums are subject to FICA and reported on Form W-2; family leave benefits are treated like unemployment income and reported on Form 1099-G, with no FICA withholding. Starting in 2027, all medical leave benefits shift to W-2 reporting with FICA withholding — a real year-over-year change worth flagging to payroll teams now.
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Unemployment Insurance (SUI)

Maine will operate under Schedule A — its lowest available tax schedule — throughout 2026, a sign of a well-funded state UI trust fund. Even so, the average per-employee cost is projected to rise slightly.

Item2026 ValueNotes
SUI taxable wage base$12,000Per employee, per year
Tax scheduleSchedule AMaine's lowest available schedule; rates 0.5% – 6.4%
New employer rate2.54%Flat rate until MDOL assigns an experience rate
Average cost per employee$267.60Up $14.40 from 2025, despite the favorable schedule
Filing portalReEmployMEOr mail Form UC-1 directly to MDOL
2026 Maine SUI rate range (Schedule A)
Where Maine employers land
Minimum experienced, new-employer, and maximum experienced rates for 2026.
Maximum (worst experience)
6.4%
New employer
2.54%
Minimum (best experience)
0.5%
Bars scaled to the 6.4% ceiling. Schedule A is Maine's most favorable schedule for employers, reflecting strong Trust Fund solvency.
About this guide: This page represents independent editorial analysis prepared for payroll professionals, compiled from publicly available Maine state and local government publications (Maine Revenue Services, the Dept. of Labor, the Maine Paid Leave program, and the City of Portland). Rates and thresholds change; always verify current figures against the official .gov sources linked above before making payroll decisions. This is not legal or tax advice — consult a qualified advisor for your specific situation. Last reviewed July 2026.
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