Maine’s brackets and new millionaire surcharge
Maine taxes gains as ordinary income in three brackets of 5.8%, 6.75% and 7.15%. For 2026 there is also a 2% surcharge on taxable income above $1 million for single filers, $750,000 married separate and $1.5 million for joint, head-of-household and surviving-spouse returns, which makes Maine’s top marginal rate on a very large gain 9.15%.
At ordinary income levels, a single resident whose Maine taxable income rises from $60,000 to $110,000 pays $3,555.73 more, mostly at 7.15%. The surcharge matters for business owners selling a company or long-held land, where one year’s gain can cross the threshold. Maine’s pension deduction does not cover capital gains.
Maine ordinary bands and enacted 2026 surcharge
Maine’s revised 2026 schedule uses 5.8%, 6.75% and 7.15% ordinary income bands. Its joint boundaries, $54,850 and $129,750, are not obtained by simply doubling the single boundaries. Enacted Chapter 650 adds a 2% surcharge on taxable income above $1 million single, $750,000 separate, and $1.5 million joint, head of household or qualifying surviving spouse. This surcharge belongs in a current 2026 capital-gain comparison.
The July 2026 1040ES worksheet includes the surcharge in schedule tax, then adds approved credit recapture and subtracts legally usable credits. It does not impose a blanket prohibition on every credit against the combined amount. Prepare Maine state adjustments, deductions, exemption phaseouts and actual credit eligibility separately before entering each annual scenario. Withholding and estimated payments affect payment due, not the liability measured here.
The resident mode requires taxable income, approved credit recapture and usable nonrefundable credits without and with the sale. It displays ordinary schedule tax separately from modeled additional amounts. Current enacted law supplies the surcharge even where an older online statute presentation has not incorporated it. Unsupported other taxes, residency allocations, refundable credits and final filing-table intervals require prepared final liabilities.
Maine preparation checklist
- Actual surcharge threshold and separately approved credit recapture
- Joint boundaries not twice single
- Usable combined-tax credits after recapture