Paycheck Calculator Maine - ME

Income Information

Federal Withholding

State Withholding


Additional Information


Maine - ME Paycheck Calculator: Hourly and Salary

Maine, also referred to as the Pine Tree state is a north-eastern-most U.S. state, full of spectacular spots, miles of coastlines, steep ocean cliffs, tall lighthouses, maritime history and amazing nature areas like spruce islands of Acadia National Park and the Granite.

Young and old, individuals and families, prefer moving to Maine every year due to a healthy environment as well as other numerous benefits including fastest-growing job opportunities, state's safe towns, and cities, welcoming communities, quality education and recreational opportunities from the mountains to the oceans.

So if you are offered an appealing job here in Maine, or planning to move this state to start a new life and business, then you must know some of the important points before relocating. Moreover, it is also important that you must be aware of the payroll taxes & laws as well as your net earnings from the business or job in Maine. Wherefore, our guide will help you from relocating to deducing the take-home pay as an employee or employment cost as an employer.

Moving to Maine:

Moving from one state to another is not an easy job, but with better guidance and planning and with hope for a better future can make it a lot easier. So, to move to the Pine Tree state, here are a few points you must know:

Business and Job Opportunities:

Maine is ranked first across the nation in Business Survival, according to the U.S. Bureau of Labor Statistics, making it one of the best "small business states" with 88.13% of startups sticking with it, compared to 82.74% in Massachusetts and 77.28% in New Hampshire.

Besides, business opportunities, Maine could also be a turning point for job seekers as it has an unemployment rate of just 2.7% and ranked in the top 10 best states for employment, with faster-growing job offers especially in paper production, agriculture and health care. So, whether you are a physical therapist, nurse practitioner, taxi driver, software developer, surgeon, dentist, psychiatrist or nurse anesthetist, you have quite high chances to land a high paying job here.

Cost of Living and Housing:

The average cost of living in this state is 104.7 points, which is slightly higher than the national average of 100, so living here won't be too affordable, but not too costly either. Moreover, the state is ranked in the top 20 states in affordability for housing, with the Median Home Value of $235,900 and the median house rent is $764 for one Bed Room and $949 for 2 Bed Room. However, the real State market here is one the rise, so the median cost of house and rent may increase with time.

Education:

Alongside better job and living, it is also important to secure the bright future of your children, by giving them quality education, for which Maine houses several acclaimed universities and colleges with seventh-highest public-school funding and the seventh-highest high-school graduation rate nationwide. Moreover, this state is also ranked on number 12 across the nation for States with the Best (and Worst) Schools by USA Today.


Outdoor Activities:

For a healthy and happy life, outdoor activities are also important. With impressive coastline, beautiful evergreen forests and iconic scenery & locales, the Maine state is a nature lover's paradise. You can plan a memorable weekend or vacations in this state and visit numerous tourist attractions including Arcadia National Park, Kennebunkport, Boothbay Harbor, Portland Museum of Art and Monhegan Island.

After reading the aforementioned perks, you have made up your mind to move in here. But before moving, it is important to secure a job, or plan your business that you are going to set-up in Maine. Wherefore, one of the important aspects to look for in a job or business is Net income (Take Home Income). And whether it be Employer or employee, paycheck calculation is something, everyone goes through.

Paycheck calculation can be used to compare different jobs as an employee, and also to deduce the employment cost as an employer (businessman). This process involves a lot of complicated calculations, taxes, and laws that make the process hectic, confusing and time-taking.

But don't worry! We have done all the hard work for you. This guide will now teach you how to calculate paycheck in Maine, according to Maine Payroll facts, State laws, and federal laws.

Maine Payroll Facts:

  • Maine Residents are charged with Federal Income Tax at the rates ranging from 0% to 37%, having seven tax brackets, depending on income level and filing status.
  • State also charges an Income tax at the progressive rates ranging from 5.8% to 7.15%, having three tax brackets, depending on filing status and income level. The highest rate applies to those having income greater than $50,750.
  • The state charges a flat of 5% of state income tax on the supplemental wages.
  • No city or county in Maine charges any local income tax on its residents.
  • The Median Household income of residents in Maine is $53,024, according to the United States Census Bureau.
  • The Maine Minimum wage rate is $11 for the non-exempted employees, which is fairly higher than the federal Minimum wage rate of $7.25. (Exemption for Minimum Wage are discussed in detail ahead).
  • The Cash Minimum Wage rate for Tipped employees is $5.25, with a maximum tip credit of $5.50.
  • Employers and Employees in Maine aren't required to pay State Disability Insurance (SDI) Tax. However, only the employers are charged with State Unemployment Insurance (SUI) Tax at the rates ranging from 0% to 5.4%, on the first $12,000 earned by each employee. However, new employers are given relief as they only have to pay a flat rate of 1.83%.
  • Average Annual Salary in Maine is $60,530.
  • The Livable wage in Maine for a single adult is $11.91 and for a couple (one working) with 2 children is $25.25.
  • Maine State doesn't have any Tax Reciprocal Agreement with any other state.

As you are aware of State Payroll Facts, let's head towards the steps that are involved in calculating Paycheck.

Step 1 - Calculating Gross Pay:

  1. To calculate Gross Pay, first, you need to determine the Pay Type of an employee. It is whether an employee is paid on an hourly basis or salary basis.

Hourly Employees:

Hourly Base Employees are paid for each hour they work in a day or a week, at the mutually agreed hourly rate. However, the mutually agreed hourly rate must be as per the Federal and State Minimum Wage law.

Hourly Employees are also entitled to receive overtime, for each excess hours worked after Regular worked hours in a day or week. The overtime rate in most of the states is one and a half times the regular hourly rate.


Salaried Employees:

Salaried employees receive a fixed but mutually agreed on pay, for a decided pay frequency, usually semi-monthly or monthly. However, for gross payment determination for a pay period, the annual salary is divided by the pay frequency.

Most of the salaried employees are exempted from Overtime law. Therefore, they are not entitled to receive overtime, regardless of how many excess hours they work. However, some exceptional salaried employees may be eligible to receive overtime according to federal or state law.


  1. Remember, Supplementary Wages like bonuses, commissions, and paid leaves, as well as double time and fringe benefits, are also taxable wages. Therefore they must also be included in gross pay before federal and state tax calculation.

Step 2 – Subtracting Pre-Tax Deductions (If Any):

Pre-Tax Deduction is an amount deducted from employee's gross pay before any withholding tax is deducted. These deductions have several advantages, including the reduction of taxable wages. Hence, increasing the take-home pay of an employee. However, not all deductions can be considered as free from all taxes, which means some of the deductions may require certain taxes to be withheld.

Some of the standard Pre-tax deductions are:

  • Health Savings Accounts or FSA or HSA plans
  • Commuter Benefits
  • Healthcare Insurance
  • Short-Term Disability
  • Dental Insurance
  • Medical Expenses and Flexible Spending Accounts
  • Vision Benefits
  • Retirement funds like a traditional 401(k)

Note: Pre-Tax deduction rate changes from year to year, according to inflation and costs of living by the federal government. Therefore, you must keep yourself updated with all rates before making any deductions.


Step 3 – Calculate and Subtract Federal Taxes:

Federal Taxes are taxes deducted from almost every employee, regardless of which state or county they work in.

Federal Taxes are calculated according to the details provided by the employee on Form W-4, which comprises of income, filing status, number of dependents, number of allowances, number of jobs, etc.

The details are form W-4, are assessed and used by the employer to deduce the federal tax bracket, in which the employee's taxable wage lay upon.

Federal Taxes ranges from 0% to 37% have seven tax brackets, depending on filing status, income, and the number of allowances claimed. Below is the income tax details for the year 2019-2020:

Single Filers
Taxable Income Rate
$0 - $9,700 10%
$9,700 - $39,475 12%
$39,475 - $84,200 22%
$84,200 - $160,725 24%
$160,725 - $204,100 32%
$204,100 - $510,300 35%
$510,300+ 37%

Married, Filing Jointly
Taxable Income Rate
$0 - $19,400 10%
$19,400 - $78,950 12%
$78,950 - $168,400 22%
$168,400 - $321,450 24%
$321,450 - $408,200 32%
$408,200 - $612,350 35%
$612,350+ 37%

Married, Filing Separately
Taxable Income Rate
$0 - $9,700 10%
$9,700 - $39,475 12%
$39,475 - $84,200 22%
$84,200 - $160,725 24%
$160,725 - $204,100 32%
$204,100 - $306,175 35%
$306,175+ 37%

Head of Household
Taxable Income Rate
$0 - $13,850 10%
$13,850 - $52,850 12%
$52,850 - $84,200 22%
$84,200 - $160,700 24%
$160,700 - $204,100 32%
$204,100 - $510,300 35%
$510,300+ 37%

Step 4 – Deduct FICA Taxes:

Along with Federal Withholding, employers are also required to withhold Federal Insurance Contributions Act (FICA) taxes from the employee's paycheck as well as pay a matching amount themselves to the IRS.

There are two types of FICA taxes:


  1. Social Security:

Employers are entitled to withhold 6.2% from the first $132,900 (wage base limit for 2019), taxable wages earned by the employee. Moreover, the employer is also required to pay an equal amount to the IRS for each employee.


  1. Medicare:

Medicare tax is another type of FICA Tax that an employer must withhold from the taxable gross wage of the employee, at the rate of 1.45%. Unlike social security, there is no wage base limit. However, if the employee earns more than the defined threshold than he/she is subjected to an additional 0.9% of the Additional Medicare Tax rate, for every dollar earned above the threshold amount.

Like Social Security, IRS also requires the employer to pay an equal amount of Medicare tax for each employee.


Step 5 – Payment of FUTA Taxes

The Federal Unemployment Tax Act (FUTA) is a tax that the IRS requires the employer to pay without deducting anything from the employee's paycheck.

The FUTA Tax rate for 2019 is 6.0% of the first taxable wage up to $7000 of an employee. However, once the taxable wage limit is crossed for a particular employee, then the employer no longer has to pay this tax.

What to reduce FUTA Tax?

Yes! Then you must pay State Unemployment Insurance (SUI) tax in full and on time and get a FUTA tax credit of up to 5.4%. Which means, you saved a whopping 90% from FUTA Tax.


Step 6 – Subtract Post-Tax Deductions (If any):

Although, employers are not required to withhold any amount as a post-tax deduction, unless if an employee voluntarily asks to do so. However, there are some deductions ordered by the court like child support or wage garnishment, which the employer is entitled to deduct.


Step 7 – Withhold Maine State Payroll Taxes:

As we have calculated Federal Payroll taxes, now it's time to calculate Maine State Payroll Taxes. The State requires the employer to pay some taxes himself and rest to withhold from the employee's paycheck. Following are the State payroll taxes that usually most of the employers and employees pay:


Maine State Income Tax

The state requires the employer to withhold the Maine State income tax from the employee's paycheck, according to the details provided by the employee on Form W-4ME, which contain all the necessary details of the employee such as filing status, a number of allowances to claim, number of jobs, etc. This form is filled by the employee at the starting of the job. The employee must ensure that the form is updated regularly when any significant event occurs like marriage, divorce or child's birth.

The Maine state income tax is divided into 3 tax brackets, ranging from 5.8% to 7.15%, depending on income level and filing status. Moreover, the state Income-tax rate of flat 5% is charged on Supplemental Wages and bonuses that are paid separately.

Single Filers
Maine Taxable Income Rate
Less than $21,450 5.80%
over $21,450 but less than $50,750 6.75%
$50,750+ 7.15%

Married, Filing Jointly
Maine Taxable Income Rate
Less than $42,900 5.80%
over $42,900 but less than $101,550 6.75%
$101,550+ 7.15%

Married, Filing Separately
Maine Taxable Income Rate
Less than $21,450 5.80%
over $21,450 but less than $50,750 6.75%
$50,750+ 7.15%

Head of Household
Maine Taxable Income Rate
Less than $32,150 5.80%
over $32,150 but less than $76,150 6.75%
$76,150+ 7.15%

Note: Employees are suggested to study and deduce the optimal number of Allowances to claim from Maine State tax, as these allowances can significantly affect your take-home pay. Remember choosing more than requires a number of allowances may lead to underpayment of taxes that may lead to a penalty. On the other hand, choosing less than the required number of allowances will cause your paycheck amount to reduce, as you will be lending tax-free money to the state for a whole year.


State Unemployment Insurance (SUI) Tax:

Besides, State income tax, Maine State also entitles the employers to pay State Unemployment Insurance (SUI) Tax at the rate range from 0% to 5.4% on the first $12,000 earned by each of their employees. However, New Employers are given relief to pay at lower rates ranging from 1.86%% on wages earned by each employee.

Step 8 – Withhold Local Tax:

No city or county in Maine charges any local income tax.


Step 9 – Calculate Pay Check:

Once you are done with all elements (steps) discussed earlier, you will have a net pay amount for each employee. Now all you have to do is pay employees on time. Also, to file all Federal Taxes, State Taxes, FICA, and FUTA taxes on time, to avoid any penalties.


Federal and Maine Payroll Tax Laws:

  • The State requires the employers to pay at least twice a month, or on higher pay frequency. Moreover, Payday for the last pay period must not be longer than eight days.
  • The Federal Minimum Wage rate for employees is $7.25, whereas the State Minimum wage rate is $11. Therefore, employers are required to pay the $11, as it is more beneficial for the employees. However, some employees are exempted from this law and they are as follow:
    • Tipped Employees: They are allowed to be paid the cash minimum wage rate of $5.50, with the maximum tip credit of $5.50. The employers must make sure that cash wage and tip earned combined must be more than or equal to $11 (Regular Minimum Wage).
    • Full-Time Students: Students working on certain jobs like "work-study programs" for 20 hours in a week are allowed to be paid the Minimum wage rate of $9.35.
    • Minor Employees: Employees of age under 20 are allowed to be paid a training minimum wage rate of $4.25 / hours for the first 90 days of employment.
    • Federal Contractors: They are required to be paid a minimum wage rate of $10.60 (as effective from 1st January 2019).
  • Overtime Law for Maine State is the same as Federal FLSA law for Overtime, where employers are required to pay overtime to the employees at times and half of the regular hourly rates, for each excess hours worked after 40 hours in a workweek. However, professional with the annual salary of 3,000 times the state minimum wage, bona fide executive, administrative employees, Domestic workers, outside salespersons, etc. are exempted from Overtime Law.
  • Neither federal law nor Maine state requires the employers to pay overtime for hours worked over 8 per day or on weekends or holidays, as long as the workweek does not exceed 40 hours.
  • Maine State doesn't abide by employers to provide employees with paid or unpaid vacation benefits.
  • If an employer has 3 or more employees working for six hours or above, then he is required to provide an UNPAID rest break for 30 minutes to the employees. However, both parties are allowed to negotiate.
  • Employers are not required to pay severance pay to the employees, under Maine State labor law.
Also Check: Maine Sales and Reverse Sales tax Calculator to Calculate the amount of tax included in a gross price as well as the amount you should add to a net price.

FAQs

Answer: Following are the taxes that are taken out of the paycheck of the employee working in Maine:

  1. Federal Income Tax: They are withheld at the rates ranging between 0% to 37%, having seven tax brackets depending on income level and filing status.
  2. FICA: This tax comprises of two taxes: Social Security and Medicare tax, charged by the federal. These taxes are paid by employees, with a matching amount paid by the employer for each employee. The employee pays 6.2% of Social Security Tax and 1.45% of Medicare Tax. In addition to an Additional Medicare tax of 0.9%, only if the annual income surpasses the defined threshold.
  3. State Income Tax: Maine State charges a progressive income tax on the paychecks, at the rate ranging from 5.8% to 7.15%, having 3 tax brackets, depending on filing status and income level.

Answer: Following are the Maine State Income Tax rates according to the income level and filing status:

For "Single" and "Married, Filing Separately":

  • 80% on taxable income up to $21,450.
  • 75% on taxable income between $21,451 and $50,750.
  • 15% on taxable income of $50,751 and more.

For "Head of Household":

  • 80% on taxable income up to $32,150.
  • 75% on taxable income between $32,151 and $76,150.
  • 15% on taxable income of $76,151 and more.

For "Married, Filing Jointly":

  • 80% on taxable income up to $42,900.
  • 75% on taxable income between $42,901 and $101,550.
  • 15% on taxable income of $101,551 and more.

Answer: if Supplemental Wages and Bonus are paid separately than they are taxed at a flat rate of 5% (effective in 2019). However, if they are paid along with regular wages, then the combined amount should be charged at the rates ranging from 5.8% to 7.15%, having 3 tax brackets, depending on filing status and income level.

Answer: Yes, Pension income, whether from a private employer or a public employee pension fund is also taxable at the rates ranging from 5.80% to 7.15%, depending on filing status and income level.

Answer: The Living wage in Maine for a single adult is $11.91 and for a couple (one working) with 2 children is $25.25.

Answer: The average annual income of females is $47,283, which is 1.22 times lower than of males, with an average income of $57,762. The Median Household income in Maine is $56,277.

Answer: The minimum wage rate for non-exempted employees in Maine is $11.

Other States Calcutors