Maine state tax basis is the Federal Adjusted Gross Income (AGI).

Interest/Divident Income: Interest and Divident income from U.S. government bonds are exempt from State Taxes.

Rent Income: Same as federal

Capital Gain: Same as federal except earnings from fishing operations contributed to a capital conservation fund and income from the Northern Maine Transmission Corp. are exempt.

Unemployment Income: Same as federal

Social Security Benefits: All social security income is exempt from state taxes.

State Bond Interest: Taxable except Maine obligations

Health Savings Accounts: There is no provision for state tax tax deduction from for the Health Saving Accounts.

Disability: Same as federal.

Lottery: Same as federal.

Federal Income Tax: Not deductible.

Other Taxes: Deduct premiums for long-term care insurance, withdrawals from Family Development (low-income) Accounts, and amounts equal to federal work opportunity and empowerment zone tax credits. Contributions to state retirement system are taxable. The following federal deductions do not apply: tuition and fees, certain student loan interest, and certain scholarships and financial assistance programs.

Check other state tax links below.