An Act To Establish Tax Fairness
Sec. 1. 36 MRSA §5111, sub-§1-C, as enacted by PL 2011, c. 380, Pt. N, §2 and affected by §19, is amended to read:
| If Maine Taxable income is: | The tax is: |
| At least $5,000 but less than $19,950 | 6.5% of the excess over $5,000 |
| $19,950 or more | $972 plus 7.95% of the excess over $19,950 |
Sec. 2. 36 MRSA §5111, sub-§1-D is enacted to read:
| If Maine Taxable income is: | The tax is: |
| At least $5,000 but less than $19,950 | 6.5% of the excess over $5,000 |
| At least $19,950 but less than $100,000 | $972 plus 7.95% of the excess over $19,950 |
| $100,000 or more | $7,336 plus 8.5% of the excess over $100,000 |
Sec. 3. 36 MRSA §5111, sub-§2-C, as enacted by PL 2011, c. 380, Pt. N, §4 and affected by §19, is amended to read:
| If Maine Taxable income is: | The tax is: |
| At least $7,500 but less than $29,900 | 6.5% of the excess over $7,500 |
| $29,900 or more | $1,456 plus 7.95% of the excess over $29,900 |
Sec. 4. 36 MRSA §5111, sub-§2-D is enacted to read:
| If Maine Taxable income is: | The tax is: |
| At least $7,500 but less than $29,900 | 6.5% of the excess over $7,500 |
| At least $29,900 but less than $110,000 | $1,456 plus 7.95% of the excess over $29,900 |
| $110,000 or more | $7,824 plus 8.5% of the excess over $110,000 |
Sec. 5. 36 MRSA §5111, sub-§3-C, as enacted by PL 2011, c. 380, Pt. N, §6 and affected by §19, is amended to read:
| If Maine Taxable income is: | The tax is: |
| At least $10,000 but less than $39,900 | 6.5% of the excess over $10,000 |
| $39,900 or more | $1,944 plus 7.95% of the excess over $39,900 |
Sec. 6. 36 MRSA §5111, sub-§3-D is enacted to read:
| If Maine Taxable income is: | The tax is: |
| At least $10,000 but less than $39,900 | 6.5% of the excess over $10,000 |
| At least $39,900 but less than $120,000 | $1,944 plus 7.95% of the excess over $39,900 |
| $120,000 or more | $8,312 plus 8.5% of the excess over $120,000 |
summary
This bill creates a new top income tax rate of 8.5%. The new rate is imposed on taxable income over $100,000 for single individuals and married persons filing separately, on income over $110,000 for taxpayers filing as heads of households and on income over $120,000 for individuals filing married joint returns or surviving spouses.