At a glance
- Corporate tax
- 3.5% to 8.93%
- Tax on wages
- Graduated
- Sales tax
- 5.5%
- Economic nexus
- $100,000 in sales
- Minimum wage
- $15.10/hr
- UI wage base
- $12,000
- New-employer UI rate
- 2.54%
- Paid leave program
- PFML 1% of wages (to SS wage base)
- Annual report
- $150, Jan 1 – Jun 1
2026 figures, each explained with its source on the area’s page. On top of the federal baseline.
Setup, in order
Register the corporation
Before doing business in MaineFile an application for authority with the Secretary of State ($250).
Open MRS accounts
Before the first Maine payrollRegister with Maine Revenue Services through the Maine Tax Portal for withholding and unemployment contributions, and for sales tax if you sell taxable products.
Set up Paid Family and Medical Leave
With the first Maine employeeRegister in the Maine Paid Leave Portal and start remitting PFML premiums (1% of wages, or the 0.5% employee share under 15 employees).
Report new hires
Promptly after hireReport each new employee to the state’s new-hire registry.
Insurance, paydays and leave
Before the first hireCarry workers’ compensation insurance, set paydays no more than 16 days apart, and adopt an earned paid leave policy if you have more than 10 employees.
Watch both nexus tests
Each calendar yearTrack Maine sales against the $100,000 sales tax threshold and the $500,000 income tax nexus threshold.
The six areas
- AccountingAccounting and state tax in MaineMaine taxes corporations at graduated rates from 3.5% to 8.93% on apportioned income, with combined reporting for unitary groups and income-tax nexus at $500,000 of Maine sales.Corporate tax rates3.5% to 8.93%
- ReceivablesReceivables and sales tax in MaineMaine charges 5.5% on goods and products transferred electronically, with no local rates; SaaS without a download is generally outside it. Remote sellers register after $100,000 of sales.Sales tax rate5.5%
- PayablesPayables and contractors in MaineMaine requires anyone who e-files 1099s with the IRS to file Maine payees’ copies directly with MRS, applies 5% backup withholding, and charges 5.5% use tax on untaxed purchases.State 1099 filingDirect to MRS
- PayrollPayroll taxes and employer rules in MaineMaine payroll is one quarterly 941ME/UC-1 filing, a $12,000 UI wage base at 2.54% for new employers, PFML premiums of 1% of wages, a $15.10 minimum wage and paydays at most 16 days apart.SUI wage base$12,000
- ComplianceCompliance and filings in MaineMaine charges $250 for an application for authority and $150 a year for a foreign corporation’s annual report, due January 1 to June 1. The 1120ME is due April 15.Application for authority$250
- AdvisoryAdvisory: credits and decisions in MaineMaine’s research credit is 5% of incremental Maine research plus 7.5% of basic research payments, carried 15 years. Investors can earn a seed capital credit through FAME.Research expense credit5% of the excess
Who you register with
- Maine Revenue Services (MRS)Corporate income tax, sales and use tax, withholding (Maine Tax Portal)
- Maine Department of LaborUnemployment insurance, wage-and-hour, Paid Family and Medical Leave
- Maine Secretary of State, Bureau of CorporationsApplication for authority and annual reports
- Finance Authority of Maine (FAME)Seed capital investment tax credit certificates
- Office of the State Treasurer, Unclaimed PropertyUnclaimed property holder reports
Hiring across the border
An employee who lives in one state and works in another is the most common way a startup ends up registered in two. These are Maine’s neighbors.
Common questions
When does an out-of-state corporation owe Maine income tax?
Once its Maine-apportioned sales exceed $500,000, or its Maine property or payroll exceeds $250,000, or 25% of its total property, payroll or sales is in Maine, for tax years beginning in 2022 or later. One full-time engineer in Portland on a $150,000 salary doesn’t reach the payroll threshold alone.
Is SaaS taxable in Maine?
Generally not, if nothing is transferred. Maine taxes products transferred electronically, which covers downloadable software, and its guidance treats digital products that can only be accessed and viewed online, not downloaded, as not taxable. The line is drawn by analogy, so confirm a particular service with MRS.
Do we send our 1099-NECs to Maine?
If you’re required to e-file them with the IRS, yes: MRS says any payer required to electronically file any type of 1099 with the IRS must file those forms directly with MRS for Maine residents and payees with Maine-source payments, through the Maine Tax Portal. Paper copies are not accepted.
Do we pay Maine Paid Family and Medical Leave premiums?
Yes. Maine’s Paid Family and Medical Leave premium is 1% of wages up to the Social Security wage base. An employer with 15 or more covered employees remits the full 1% and may deduct up to half from employees; an employer with fewer than 15 remits only the 50% employee share. Premiums and wage reports are due quarterly, and benefits began May 1, 2026.
When is the Maine annual report due?
Between January 1 and June 1 each year, starting the year after the corporation is authorized. A foreign business corporation pays $150, plus $50 if it files late.
Does Maine have an R&D credit?
Yes, against corporate income tax. It is 5% of the amount by which Maine qualified research expenses exceed the average of the prior three years, plus 7.5% of basic research payments, using the federal § 41 definitions. It can offset all of the first $25,000 of tax and 75% above that, and carries over 15 years. It isn’t refundable.
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
- Maine Revenue Services — Corporate income tax (1120ME)
- Maine Revenue Services — 2025 Form 1120ME general instructions
- Maine Revenue Services, Office of Tax Policy — OBBBA conformity documents
- Maine Revenue Services — Sales and use tax rates and due dates
- Maine Revenue Services — Business guide for sales, use and service provider tax (Dec 2025)
- Maine Revenue Services — Instructional Bulletin 43, registration of out-of-state sellers
- Maine Revenue Services — Sales tax reference guide (digital products)
- Maine Revenue Services — Employer withholding
- Maine Revenue Services — 2026 Form 941ME instructions
- Maine Revenue Services — 2026 withholding tables and instructions
- Maine Department of Labor — 2026 annual rate array
- 26 M.R.S. § 1043 — Unemployment definitions (taxable wages)
- Maine Paid Family and Medical Leave — Employer’s guide to contributions
- Maine Paid Family and Medical Leave — Employers
- Maine Department of Labor — Minimum wage $15.10 beginning January 1, 2026
- Maine Department of Labor — Labor law FAQ
- 26 M.R.S. § 621-A — Timely and full payment of wages
- 13-C M.R.S. § 123 — Filing, service and copying fees
- 13-C M.R.S. § 1621 — Annual report of domestic and foreign corporations
- 36 M.R.S. § 5219-K — Research expense tax credit
- 36 M.R.S. § 5216-B — Seed capital investment tax credit
- IRS Publication 1220 — Combined Federal/State Filing participating states
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.