This tax system uses four different income tax brackets depending on your income level. The income tax rates range from 2% to 8.5%.
The general sales tax rate is 5%. There is also a 7% tax on lodging and prepared food, and a 10% tax on short term auto rentals. For people who commercially sell blueberries, a staple food of Maine, must record all records of their transactions and pay a state tax of 1.5 cents per pound ($1.50 for 100 pounds) of blueberries sold each season.
There is a service provider tax in Maine as well. This tax is not directly imposed on the customer, but the customer often ends up being the one that pays it. It’s a tax that applies to certain businesses in Maine, including extended cable television services, fabrication services, rental of video media and video equipment and more. The businesses who have to pay the tax have the option to pass the tax on to the consumer as long as it’s listed separately from the sales tax, which is what often happens.
Personal property in the state of Maine (all real and tangible) is subject to Maine State Property Tax, excluding any property specifically exempted by a statute. Property tax administration is handled the local assessor of any incorporated city or town. As for any unorganized territories in Maine, the assessment of those properties are handled by the State Tax Assessor.
It can be very difficult and frustrating doing all your taxes by hand, and it can take a very long time for your refund to get back to you when sent in on paper. One of the easiest and most convenient ways to file your tax return is to e-file it. Your return comes back to you much faster, and there are many programs that can make your return easy, fast and simple.