Nobody likes to pay taxes so the citizens of Maine will be extra happy in 2016 as cuts to the state’s income and estate tax comes in effect. For income tax, the top rate will settle down to %7.15, a drop of nearly a point, with the income tax threshold for the top bracket raising to $37,500. Those that are above the old top rate threshold of $21,050 will be taxed at %6.75 with all those under it will be hit at %5.8. On the estate tax side, no reduction has been made of the rate but the exemption to the to tax has jumped from $2 million to $5.5 million which put the state closely in line with the federal estate tax exemption. However, there is some bad news as the state sales tax will remain at %5.5 instead of dropping back down to %5 which was required in order to pay for the other tax cuts.
See, Cuts to Maine’s income, estate taxes going into effect at start of next year, Maine Biz, December 21, 2015.
