Maine

Tax Rate Range: Low - 2%; High - 8.5%
Income Brackets: * Lowest - $4,550; Highest - $18,250
Number of Brackets: 4
Personal Exemptions: Single - $2,850; Married - $5,700; Dependents - $2,850
Standard Deduction: Single - $5,150; Married filing jointly - $8,600
Additional Deductions: Single or head of household over 65 - $1,250; One spouse over 65 - $950; Both over 65 - $1,900
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security is exempt. $6,000 exemption for pension income, but not IRAs, minus amount of Social Security benefit. Out-of-state government pensions qualify for the $6,000 exemption.
Retired Military Pay: Follows federal tax rules.

State Tax Software

Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.
* For joint returns, the taxes are twice the tax imposed on half the income.

Sales Taxes

All real estate and personal property of Maine residents is subject to local and, if authorized by the legislature, state property taxes. Local property taxes, based upon assessed valuation, are assessed, levied and collected by municipalities. Homestead and veteran's exemption programs, administered by the state, are available to reduce property taxes for those who qualify. The Homestead Exemption program provides a measure of property tax relief for certain individuals that have owned homestead property in Maine for at least 12 months and make the property they occupy on April 1st their permanent residence. Property owners receive an exemption of $13,000 on the assessed value of their home. A Veteran exemption of $5,000 is available to those who served during a recognized war period, are 62 years or older, are receiving 100% disability as a veteran or became 100% disabled while serving. Paraplegic veterans who received a federal grant for a specially adapted housing unit may receive a $47,500 exemption. A blind exemption of $4,000 is available to those who are legally blind. A property tax refund program is available if your taxes exceed 4% of your income or, if rent paid was more than 20% of your income. For information on the 2006 property tax and rent refund program click here. For more information, call 207-287-2011.

Inheritance and Estate Taxes
There is no inheritance tax. Maine has partially decoupled from the federal estate tax law. The amount exempt from the Maine estate tax is different from the amount exempt from federal estate tax. A person dying in 2006 would have their estate exempt for up to $1,0000,000.
For further information, visit the Maine Revenue Services site.