Maine Issues 2026 Withholding Tables — Updated Personal Exemption & Standard Deductions Effective Jan 1
Maine Revenue Services issued updated withholding tables effective January 1, 2026. The personal exemption is $5,300 (up from $5,150); standard deductions are $15,300 single and $30,600 married filing jointly. Supplemental rate unchanged at 5%.
- Personal exemption: $5,300 (up from $5,150) effective January 1, 2026.
- Standard deduction: $15,300 single (up from $15,000) and $30,600 married (up from $30,000).
- Supplemental wage rate remains 5% — unchanged from 2025.
- Maine uses Form W-4ME, not the federal W-4, as the employee withholding certificate.
- The 2026 tables provide both percentage method and wage bracket method calculations — employers may use either.
What Maine Updated and When It Takes Effect
Maine Revenue Services (MRS) published updated income tax withholding tables for 2026 in November 2025. The tables are effective for all wages paid on or after January 1, 2026, and supersede the 2025 tables in all respects. Both the wage bracket method and the percentage method tables have been updated, and employers may use either method. The update reflects inflation-adjusted changes to the personal exemption amount, standard deduction thresholds, and income tax bracket boundaries.
| Parameter | 2025 | 2026 | Change |
|---|---|---|---|
| Personal exemption amount | Prior year amount | $5,300 per allowance | ↑ Updated |
| Standard deduction — Single (for withholding) | Prior year amount | $12,450 (wages ≤$102,250) | ↑ Updated |
| Standard deduction — Married (for withholding) | Prior year amount | $27,750 (wages ≤$204,550) | ↑ Updated |
| Supplemental wage rate (paid separately) | 5% | 5% — unchanged | No change |
| Number of income tax brackets | 3 | 3 — unchanged | No change |
| Bracket thresholds | 2025 amounts | Inflation-adjusted for 2026 | ↑ Updated |
Maine's Three-Rate Income Tax Structure for 2026
Maine applies a three-bracket graduated income tax. For 2026, MRS adjusted the bracket thresholds upward for inflation using a cost-of-living adjustment multiplier published on September 15, 2025. The structure and rates themselves — 5.80%, 6.75%, and 7.15% — are unchanged. Only the dollar amounts at which each rate kicks in have shifted.
| Maine Taxable Income | Tax Rate | Marginal Band |
|---|---|---|
| $0 – $27,400 | 5.80% | First bracket |
| $27,401 – $65,000 (approx.) | 6.75% | Second bracket |
| Over $65,000 (approx.) | 7.15% | Top bracket |
Note: Bracket thresholds above are illustrative based on 2026 MRS guidance. The exact thresholds for married filers differ and are approximately double the single-filer amounts. Always use the official MRS 2026 withholding booklet or percentage method table for payroll calculations.
Percentage vs. Wage Bracket Method
Maine employers may use either the Wage Bracket Method or the Percentage Method to calculate withholding. Both methods are published in the 2026 MRS withholding booklet and are equally acceptable. The two methods will generally produce slightly different results for edge cases due to rounding conventions, but both are compliant approaches.
| Step | Action |
|---|---|
| 1 | Annualize the gross wages (multiply by pay periods per year: 52, 26, 24, 12, or 260 for daily) |
| 2 | Subtract the personal exemption: $5,300 × number of allowances claimed on Form W-4ME |
| 3 | Subtract the applicable standard deduction (based on filing status and annualized wages; subject to phase-out above income thresholds) |
| 4 | Apply the 2026 Maine tax rate schedule to the resulting Maine taxable income |
| 5 | Divide the resulting annual tax by the number of pay periods to arrive at per-period withholding |
Supplemental Rate: 5% Unchanged
The Maine supplemental wage withholding rate remains 5% for 2026. This flat rate applies only when supplemental wages — such as bonuses, commissions, and separately paid overtime — are paid separately from regular wages in a distinct payroll run. When supplemental wages are included in the same paycheck as regular wages, the combined payment must be processed using the standard wage bracket or percentage method tables, treating the combined amount as a single regular wage payment. Applying the 5% rate to combined payments is a common and auditable error.
Form W-4ME: Maine's Employee Withholding Certificate
Maine uses its own withholding certificate, Form W-4ME, for employees to specify their withholding allowances and filing status for state purposes. Maine generally follows the federal allowance structure: employees claim one allowance for themselves (if not claimed as a dependent), one for a spouse, and additional allowances for each dependent. Unlike some states, Maine does not have additional allowances for age or blindness — these differences from federal rules are built into the withholding tables rather than the form itself.
Employees who do not submit a Form W-4ME are treated as single with zero allowances for Maine withholding purposes, which typically results in the highest withholding for a given wage level. Employees who want to adjust their Maine withholding — for example, because of anticipated itemized deductions or other income — may request additional withholding on Form W-4ME.
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