Article
5 min read
Maine Payroll Taxes: 2026 Employer Guide
US payroll
Author
Shannon Ongaro
Last Update
April 17, 2026
Table of Contents
Overview of Maine payroll taxes
Maine payroll obligations at a glance (2026)
Paying unemployment insurance
Withholding personal income tax
Paying workers’ compensation
Withholding Paid Family and Medical Leave contributions
Deel's US payroll solution for Maine
Key takeaways
- Maine employers must manage four distinct payroll obligations: unemployment insurance, personal income tax withholding, workers’ compensation, and Paid Family and Medical Leave contributions.
- Maine’s Paid Family and Medical Leave program began collecting contributions in January 2025, and benefits became available to eligible employees starting May 1, 2026, so employers must be contributing and ready to administer leave requests.
- Deel Payroll handles automated federal, state, and local tax calculations, filing, and remittance across all 50 states — including Maine — so your team can focus on running the business instead of tracking rate changes and filing deadlines.
Running payroll in Maine means staying on top of multiple state obligations at once. Unemployment insurance rates changed for 2026, the state’s Paid Family and Medical Leave program is now paying benefits, and income tax withholding tables have been updated for inflation. Miss any of these, and you’re exposed to penalties from the Maine Department of Labor (MDOL) or Maine Revenue Services (MRS).
This guide walks through every Maine payroll tax employers need to know for 2026, with current rates, deadlines, and official filing resources.
Overview of Maine payroll taxes
Maine employers are responsible for several layers of payroll obligations. Federal income tax and FICA taxes (Social Security and Medicare) apply nationwide. On top of those, Maine requires: unemployment insurance (UI) contributions, personal income tax (PIT) withholding, state workers’ compensation coverage, and Paid Family and Medical Leave (PFML) contributions.
Maine does not impose additional local payroll taxes, which simplifies the state picture compared to jurisdictions like New York or Pennsylvania. Nonprofit organizations remain subject to payroll taxes even if they are otherwise tax-exempt.
Maine’s labor market context matters for employers managing workforce costs. Maine’s unemployment rate held at 3.4–3.5% throughout 2025, remaining below 4% for more than 40 consecutive months, which is one of the second-longest such stretches on record, according to the Maine Department of Labor.
Average weekly wages reached $1,363 in Cumberland County and $1,207 in York County in Q3 2025, both below the national average of $1,459. In a tight labor market with below-average wages, compliant and timely payroll administration is a baseline expectation for attracting and retaining workers.
Maine payroll obligations at a glance (2026)
| Tax type | Who pays | 2026 rate / key figure |
|---|---|---|
| Unemployment insurance (UI) | Employer only | 0.5%–6.4% on first $12,000 per employee |
| Personal income tax (PIT) | Employee (withheld by employer) | 5.80%, 6.75%, or 7.15% (graduated brackets) |
| Workers’ compensation | Employer (via carrier) | Varies by carrier and industry |
| Paid Family and Medical Leave (PFML) | Employer + employee (shared) | 1% for 15+ employees; 0.5% for under 15 |
Paying unemployment insurance
Maine employers pay unemployment insurance (UI) tax on behalf of their workers. UI, also called state unemployment insurance (SUI) tax, funds temporary payments to eligible workers who lose their jobs through no fault of their own.
2026 UI rates and taxable wage base
Maine will operate under Schedule A — its lowest unemployment tax schedule — for 2026. Schedule A contains rates ranging from 0.5% to 6.4%. UI tax applies to the first $12,000 in gross wages paid to each employee per calendar year.
New employers pay a flat rate of 2.54% in 2026. Experienced employers receive an individual rate based on their layoff history, which MDOL sends in December each year. Under Schedule A, the average UI cost per employee earning at least $12,000 is expected to be $267.60 for 2026, which is an average increase of $14.40 per employee compared with 2025.
Filing and payment deadlines
UI payments are due quarterly:
- April 30
- July 31
- October 31
- January 31
The MDOL administers UI through the ReEmployME portal. Employers can also mail the UC-1 form and payment directly to MDOL. Late filings may incur a penalty.
Withholding personal income tax
Maine employers must withhold Personal Income Tax (PIT) from employees’ wages, then remit those amounts to Maine Revenue Services (MRS). PIT is the employee’s obligation, but the employer is responsible for calculating, withholding, and remitting it on time.
2026 PIT rates and brackets
Maine uses three graduated rates for 2026: 5.80%, 6.75%, and 7.15%. MRS published updated bracket thresholds on September 15, 2025, adjusted for inflation, which apply for tax years beginning in 2026. The 2026 personal exemption is $5,300, and the standard deduction for single filers is $15,300 ($30,600 for married filing jointly).
| Filing status | Annualized income range | Rate |
|---|---|---|
| Single | Up to $27,400 | 5.80% |
| Single | $27,400 – $64,850 | 6.75% |
| Single | $64,850 and above | 7.15% |
| Married filing jointly | Up to $54,850 | 5.80% |
| Married filing jointly | $54,850 – $129,750 | 6.75% |
| Married filing jointly | $129,750 and above | 7.15% |
Supplemental wages
When supplemental wages (such as bonuses, commissions, or overtime pay) are paid separately from regular wages, employers may withhold at Maine’s flat supplemental rate of 5%, per MRS 2026 guidance. If supplemental wages are paid alongside regular wages in the same payroll, withhold as if the combined total were a single regular wage payment.
Payment frequency
Employers who reported $18,000 or more in Maine income tax withholding during the 12-month lookback period ending June 30 of the prior year must remit on a semiweekly schedule. All other employers remit quarterly, on the last day of the month following the quarter end. Quarterly filers whose annual combined Maine tax liability exceeds $10,000 must pay electronically.
Filing
All employers registered for Maine income tax withholding must electronically file quarterly returns using Form 941ME via the Maine Tax Portal (MTP) at revenue.maine.gov. The Form W-3ME annual reconciliation has been discontinued for tax years after 2023, and the quarterly 941ME Form is now the sole filing requirement.
Paying workers’ compensation
Businesses in Maine with one or more employees must carry workers’ compensation insurance, although some exemptions apply. Workers’ compensation covers an employee’s workplace injuries or illnesses.
Maine employers must obtain coverage from a qualified commercial carrier licensed in the state. The Maine Workers’ Compensation Board administers the program.
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Withholding Paid Family and Medical Leave contributions
Maine’s Paid Family and Medical Leave (PFML) program requires all employers with at least one employee to withhold and remit payroll contributions. Contributions began January 1, 2025. Benefits became available to eligible Maine employees starting May 1, 2026, and applications opened March 30, 2026.
2026 PFML contribution rates
| Employer size | Contribution rate and structure |
|---|---|
| 15 or more employees | 1% of wages. Employer may deduct up to 0.5% from employees’ wages. |
| Fewer than 15 employees | 0.5% of wages. Employer may deduct the entire amount from employees’ wages. |
PFML wages are calculated on total subject wages — not gross wages — similar to Maine UI wages. The calculation is based on wages before income and FICA taxes are deducted, capped at the annual Social Security wage base. Employee PFML premium contributions must be listed in Box 14 of the W-2 form with the label “MEPFML.”
Learn more about Maine’s Paid Family Leave.
Filing and payment deadlines
Quarterly PFML wage reports are due by the last day of the month following the end of each quarter. Employers submit contributions through the Maine Paid Leave portal at maine.gov/paidleave/.
What employers need to know now that benefits are live
With benefits live as of May 1, 2026, employers should confirm their leave administration processes are in place. Eligible employees can apply for up to 12 weeks of paid leave for qualifying family, medical, military deployment transition, or safety-related events. Employers who fail to remit contributions may face penalties equal to a percentage of total quarterly payroll, per MDOL PFML rules.
Deel's US payroll solution for Maine
Deel Payroll handles automated federal, state, and local tax calculations, filing, and remittance across all 50 states, including Maine. Whether you need fully managed payroll or prefer to run it yourself with built-in compliance guardrails, Deel Payroll gives you the flexibility to choose, with a single system of record that connects payroll, HR, and benefits without the patchwork of local vendors.
Tax calculations and filing
Deel Payroll automates the full calculation, filing, and remittance cycle across all 50 states:
- Automated gross-to-net calculations for federal, state, and local taxes
- Federal, state, and local tax filing and remittance, including Forms 941, 940, W-2, and W-3
- State withholding, unemployment, and local tax returns filed on your behalf
- Multi-state payroll support
- New hire reporting to state agencies handled as part of the onboarding workflow
- Electronic remittance via ACH credit
Compliance management
- Federal, state, and local regulation updates applied automatically
- I-9 and E-Verify employment eligibility verification
- Overtime and break law compliance management
- FMLA, sick, vacation, and parental leave tracking with payroll integration
- Background checks for employment, education, and criminal history
Payroll execution
- Biweekly, semi-monthly, and monthly pay frequencies, with multiple payroll groups per entity
- Real-time payroll calculations; autopay and auto-approve options
- Mid-cycle pay changes with automated pro-rata calculations
- Payroll corrections and prior-period amendments
- Deduction management including 401(k) Traditional, 401(k) Roth, and Simple IRA
- CSV and Excel data import for bulk payroll inputs
- Time tracking with clock-in/out, geo-fence, mobile app, and schedule management
Reporting
- Payroll summary report and general ledger export
- YTD reports, monthly/quarterly/annual filings, and state pay data filing
- W-2 preview and distribution; new hire reporting
- 401(k), COBRA, ACA, benefits enrollment history and cost analysis, and census reporting
Integrations
Deel Payroll connects natively to the tools your team already uses:
- Accounting: QuickBooks Online, Xero, NetSuite, Sage Intacct
- HRIS: BambooHR, HiBob, Workday, UKG Pro, UKG Ready, Personio, SAP SuccessFactors
- Benefits administration: Employee Navigator, bswift, Noyo
- Equity: Carta, Global Shares by J.P. Morgan
- ATS: Lever, Greenhouse, Ashby, Workable, JazzHR
- SSO and device management: Okta, Jumpcloud
- Other: Expensify, 15Five, Google, Microsoft, Slack, Talkspace, Carrot
Speak with a Deel expert to explore how Deel Payroll can help you manage your US obligations.
Disclaimer: This article is provided for general informational purposes and should not be treated as legal or tax advice. Rates and thresholds are based on official Maine Revenue Services and Maine Department of Labor guidance current as of April 2026. Consult a qualified professional before proceeding.
FAQs
What are the Maine income tax withholding rates for 2026?
Maine uses three graduated rates for 2026: 5.80%, 6.75%, and 7.15%, applied to inflation-adjusted income brackets published by Maine Revenue Services on September 15, 2025. The 2026 personal exemption is $5,300 and the standard deduction is $15,300 for single filers and $30,600 for married filers. Employers calculate withholding using the MRS Wage Bracket Tables or the Percentage Method.
What is Maine’s unemployment insurance rate for 2026?
Maine will use Schedule A — its lowest tax schedule — in 2026. Experienced employer rates range from 0.5% to 6.4% on the first $12,000 of wages per employee. New employers pay a flat rate of 2.54%. Individual rates are sent by MDOL in December each year. The average annual UI cost per employee earning at least $12,000 is expected to be $267.60.
Does Maine have a paid family leave payroll contribution?
Yes. Maine’s PFML program requires employer contributions that began January 1, 2025. Employers with 15 or more employees contribute 1% of wages (and may deduct up to 0.5% from employees). Employers with fewer than 15 employees contribute 0.5% of wages (and may deduct the full amount from employees). Benefits became available May 1, 2026, and eligible employees can receive up to 12 weeks of paid leave for qualifying events.
Do I have to pay Maine income tax if I work in another state?
If you’re a Maine resident, you must report and pay Maine income tax on all income regardless of where it’s earned. You may qualify for a credit for taxes paid to another state. Nonresident employees who work in Maine more than 12 days and earn more than $3,000 in the year are generally subject to Maine income tax withholding by their employer.
How are bonuses taxed in Maine?
Bonuses are supplemental wages subject to both federal and Maine state income tax withholding. When paid separately from regular wages, employers may withhold at Maine’s flat supplemental rate of 5%, per MRS 2026 guidance. When paid alongside regular wages, withhold on the combined total as a single regular wage payment.
Does Maine have local payroll taxes?
No. Maine does not impose local payroll taxes at the city or county level. Employers only need to manage the state-level obligations covered in this guide, plus federal requirements.
What is Maine’s supplemental wage tax rate for 2026?
The flat supplemental wage withholding rate for 2026 is 5%, per the MRS 2026 Withholding Tables. This applies to supplemental wages (bonuses, commissions, overtime) paid separately from regular wages. For wages paid together with regular wages, use the standard wage bracket or percentage method.
Shannon Ongaro is a content marketing manager and trained journalist with over a decade of experience producing content that supports franchisees, small businesses, and global enterprises. Over the years, she’s covered topics such as payroll, HR tech, workplace culture, and more. At Deel, Shannon specializes in thought leadership and global payroll content.
