Maine

Maine top income tax rate is 7.15% on income above $126,900 (MFJ, TY2025)

“A tax is imposed for each taxable year beginning on or after January 1, 2000, on the Maine taxable income of every resident individual of this State. The amount of the tax is determined as provided in this section. ... $50,000 or more $3,175 plus 7.15% of the excess over $50,000”

Note: The quoted table row is the statutory base-year single schedule (§5111(1-F)); for TY2025 MFJ the inflation-adjusted schedule is 5.8% on income of $0 to $53,600; 6.75% on income exceeding $53,600 but not exceeding $126,900; 7.15% on income exceeding $126,900. The dollar thresholds ($53,600, $126,900) are inflation-adjusted annually and are not fixed in the statute text. Maine standard deduction ($30,000 MFJ) and personal exemptions ($5,150 × persons) phase out at high income effectively $0 shelter for large capital-gain filers. Thresholds are inflation-adjusted annually.

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

ME taxes out-of-state muni bond interest via §5122(1)(A) addition; ME bonds exempt per §5122(2)(N)

“Interest or dividends on obligations or securities of any state other than this State...to the extent not included in federal adjusted gross income.”

Note: §5122(2)(N) provides the in-state exemption: 'Interest or dividend income on obligations of this State or of any political subdivision of this State.'

ME taxes out-of-state muni bond interest via §5122(1)(A) addition; ME bonds exempt per §5122(2)(N)

“Interest or dividends on obligations or securities of any state other than this State...to the extent not included in federal adjusted gross income.”

Note: §5122(2)(N) provides the in-state exemption: 'Interest or dividend income on obligations of this State or of any political subdivision of this State.'

Maine partially conforms to IRC §1400Z-2 QOZ gain deferral and exclusion

“SS. An amount equal to the amount of gain excluded from federal gross income by the taxpayer under the Code, Section 1400Z-2(a) with respect to amounts invested in a qualified opportunity zone after December 31, 2026.”

Note: Quote is P.L. 2025 ch. 650 (LD 2212) Sec. K-4, enacting 36 M.R.S. §5122(1)(SS); Sec. K-5 (paragraph TT) adds the companion basis step-up addback. The codified §5122 web page is not yet updated with these paragraphs, so the enrolled chapter PDF is cited. Effect: Maine decoupled from IRC §1400Z-2 for QOF investments made after December 31, 2026; investments made on or before that date remain on the federal deferral and exclusion schedule.

Maine partially conforms to IRC §1202 QSBS gain exclusion

“UU. An amount equal to the amount of gain excluded from federal gross income by the taxpayer under the Code, Section 1202(a)(1) with respect to sales of qualified small business stock first acquired after July 3, 2025.”

Note: Quote is P.L. 2025 ch. 650 (LD 2212) Sec. K-6, enacting 36 M.R.S. §5122(1)(UU). The codified §5122 web page is not yet updated with this paragraph, so the enrolled chapter PDF is cited. Effect: Maine decoupled from IRC §1202 for QSBS first acquired after July 3, 2025; QSBS acquired on or before that date retains the federal exclusion under Maine law.

Maine Revenue Services table: FNMA and FHLMC are 'Yes' (subject to Maine income tax)

“Obligations of Organizations Created or Sponsored by U.S. Government: Federal National Mortgage Association, FNMA (Fannie Mae): Yes [Subject to Maine Income Tax]. Federal Home Loan Mortgage Corp., FHLMC (Freddie Mac): Yes [Subject to Maine Income Tax].”

Note: The same table lists FHLB as 'No*' with footnote '*Exemption from all state and local income taxes granted by a specific federal law.' FNMA and FHLMC appear without that footnote, confirming no federal mandate applies to bondholder interest. Supporting statute: 36 M.R.S. §5122(2)(A); subtraction applies only to interest 'exempt from state income taxes under the laws of the United States.'

Maine top income tax rate is 7.15% on income above $126,900 (MFJ, TY2025)

“A tax is imposed for each taxable year beginning on or after January 1, 2000, on the Maine taxable income of every resident individual of this State. The amount of the tax is determined as provided in this section. ... $50,000 or more $3,175 plus 7.15% of the excess over $50,000”

Note: The quoted table row is the statutory base-year single schedule (§5111(1-F)); for TY2025 MFJ the inflation-adjusted schedule is 5.8% on income of $0 to $53,600; 6.75% on income exceeding $53,600 but not exceeding $126,900; 7.15% on income exceeding $126,900. The dollar thresholds ($53,600, $126,900) are inflation-adjusted annually and are not fixed in the statute text. Maine standard deduction ($30,000 MFJ) and personal exemptions ($5,150 × persons) phase out at high income effectively $0 shelter for large capital-gain filers. Thresholds are inflation-adjusted annually.

U.S. Treasury interest exempt from Maine income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations

“Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.”

Note: 31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.

FHLB and FFCB bond interest exempt from Maine income tax: federal enabling statutes mandate state tax exemption

“Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.”

Note: 12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.

Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation

“The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).”

Note: 12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

Maine top income tax rate is 7.15% on income above $126,900 (MFJ, TY2025)

“A tax is imposed for each taxable year beginning on or after January 1, 2000, on the Maine taxable income of every resident individual of this State. The amount of the tax is determined as provided in this section. ... $50,000 or more $3,175 plus 7.15% of the excess over $50,000”

Note: The quoted table row is the statutory base-year single schedule (§5111(1-F)); for TY2025 MFJ the inflation-adjusted schedule is 5.8% on income of $0 to $53,600; 6.75% on income exceeding $53,600 but not exceeding $126,900; 7.15% on income exceeding $126,900. The dollar thresholds ($53,600, $126,900) are inflation-adjusted annually and are not fixed in the statute text. Maine standard deduction ($30,000 MFJ) and personal exemptions ($5,150 × persons) phase out at high income effectively $0 shelter for large capital-gain filers. Thresholds are inflation-adjusted annually.

Maine estate tax: graduated 8% to 12%; $7,000,000 exclusion for TY2025 (CPI-indexed annually)

“For estates of decedents dying in 2025, the annual exclusion amount is $7,000,000 and tax is computed as follows”

Note: Maine estate tax is graduated 8%-12% above the exclusion. Brackets: $7M-$10M = 8%; $10M-$13M = 10%; $13M+ = 12%. Exclusion is CPI-adjusted annually (was $6,800,000 for TY2024; $7,160,000 for TY2026).

Maine estate tax: graduated 8% to 12%; $7,000,000 exclusion for TY2025 (CPI-indexed annually)

“For estates of decedents dying in 2025, the annual exclusion amount is $7,000,000 and tax is computed as follows”

Note: Maine estate tax is graduated 8%-12% above the exclusion. Brackets: $7M-$10M = 8%; $10M-$13M = 10%; $13M+ = 12%. Exclusion is CPI-adjusted annually (was $6,800,000 for TY2024; $7,160,000 for TY2026).

Maine estate tax exclusion for TY2026: $7,160,000 (CPI-indexed annually)

“For estates of decedents dying in 2026, the annual exclusion amount is $7,160,000 and tax is computed as follows”

Note: ME exclusion CPI-adjusted annually per 36 M.R.S.A. ch. 577. TY2025 was $7,000,000; TY2026 is $7,160,000. Tax brackets (8%-12%) unchanged.

Maine income tax: MFJ bracket thresholds double Single thresholds at every bracket boundary (marriage neutral)

“Less than $42,100 5.8% of the Maine taxable income ... $2,442 plus 6.75% of the excess over $42,100 $100,000 or more $6,350 plus 7.15% of the excess over $100,000 [PL 2015, c. 267, Pt. DD, §7 (NEW).]”

Note: Rate table from §5111(3-F) (MFJ): Less than $42,100: 5.8%; $42,100 to $100,000: $2,442 plus 6.75%; $100,000+: $6,350 plus 7.15%. Single filer thresholds from §5111(1-F): Less than $21,050: 5.8%; $21,050 to $50,000: $1,221 plus 6.75%; $50,000+: $3,175 plus 7.15%. MFJ thresholds (§5111(3-F)) are exactly 2x Single: $21,050x2=$42,100; $50,000x2=$100,000. Same marginal rates (5.8%/6.75%/7.15%) apply at each corresponding doubled bracket boundary. Thresholds are adjusted annually for inflation under the statute.

Maine conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference

“A tax is imposed for each taxable year beginning on or after January 1, 2000, on the Maine taxable income of every resident individual of this State.”

Note: 36 M.R.S. §5111 imposes the tax on Maine taxable income, which derives from federal adjusted gross income (36 M.R.S. §5121 et seq.), so the federal section 1212 capital-loss carryover flows through. Quote verbatim from the live Maine Legislature statute page. No published guidance addresses the imported pre-residency carryforward, so that application remains a structural inference.