Title 36, Title 36

This Part shall be known and may be cited as the "Maine Income Tax Law." [P&SL 1969, c. 154, §F/§1 (NEW).]

The following definitions shall apply throughout this Part, except as the context may otherwise require: [P&SL 1969, c. 154, §F/§1 (NEW).] 1. Assessor. 1-A. Lobster boat operator. Any person licensed by the Department of Marine Resources to fish for, take or catch lobsters and wh…

A tax is imposed for each taxable year beginning on or after January 1, 2000, on the Maine taxable income of every resident individual of this State. The amount of the tax is determined as provided in this section. [PL 1999, c. 731, Pt. T, §1 (AMD).] 1. Single individuals and mar…

In lieu of a tax computed exactly according to the rates set forth in section 5111, taxpayers may utilize a tax table. The State Tax Assessor shall prepare and issue tables approximating as near as practicable the tax computed using section 5111 for this express purpose.

For application of the tax to estates and trusts, see chapter 809, for application to partnerships, chapter 815. [P&SL 1969, c. 154, §F/§1 (NEW).]

A taxpayer who qualifies and files a federal income tax return utilizing the joint return tax rates as a surviving spouse may file in a similar manner with the State.

A taxpayer whose income tax liability is forgiven pursuant to Section 692 of the Code for any tax year is entitled to a waiver of state income tax for the same tax year, including any related interest and penalty, in the same manner in which the federal tax liability is forgiven.…

The Maine taxable income of a resident individual is equal to the individual's federal adjusted gross income with the modifications and less the deductions and personal exemptions provided in this chapter.

1. Additions. Federal adjusted gross income shall be increased by: A. Interest or dividends on obligations or securities of any state other than this State, or of a political subdivision or authority of any state other than this State, to the extent that interest or those dividen…

For tax years beginning on or after January 1, 2016 but before January 1, 2018, the standard deduction of a resident individual is equal to the sum of the basic standard deduction and any additional standard deduction, subject to the phase-out under subsection 3. [PL 2017, c. 474…

1. Amount; before January 1, 2020. For tax years beginning on or after January 1, 2018 and before January 1, 2020, the standard deduction of a resident individual is equal to the standard deduction as determined in accordance with the Code, Section 63, subject to the phase-out un…

1. General. An individual who has claimed itemized deductions from federal adjusted gross income in determining the individual's federal taxable income for the taxable year may claim itemized deductions from Maine adjusted gross income as provided in this section. A. [PL 1987, c.…

For income tax years beginning on or after January 1, 1998 but before January 1, 1999, a resident individual is allowed $2,400 for each exemption that the individual properly claims for the taxable year for federal income tax purposes, unless the taxpayer is claimed as a dependen…

1. Amount. For income tax years beginning on or after January 1, 2018, a resident individual is allowed a personal exemption deduction for the taxable year equal to $4,150, unless the individual may be claimed as a dependent on another return. A resident individual is allowed an …

If the taxpayer is regarded as a resident of both this State and another jurisdiction for purposes of personal income taxation, the assessor shall reduce the tax on that portion of the taxpayer's income which is subjected to tax in both jurisdictions solely by virtue of dual resi…

1. General. The Maine adjusted gross income of a tribal member derived from or connected with sources on tribal land is the sum of the following amounts: A. The net amount of items of income, gain, loss and deduction entering into the tribal member's federal adjusted gross income…

1. General. The Maine adjusted gross income of a nonresident individual derived from or connected with sources in this State is the sum of the following amounts: A. The net amount of items of income, gain, loss, and deduction entering into the nonresident individual's federal adj…

Notwithstanding any provision of this Part to the contrary, an individual who transferred, during the taxable year, real or tangible personal property located in this State under an installment sale agreement may elect to recognize, for purposes of determining the taxable income …

The tax is imposed, at the rates provided by section 5111 for single individuals, upon the Maine taxable income of estates and trusts. The tax must be paid by the fiduciary.

1. Associations taxable as corporations. An association, trust or other unincorporated organization which is taxable as a corporation for federal income tax purposes shall not be subject to tax under this chapter. 2. Exempt associations, trusts and organizations. An association, …

The Maine taxable income of a resident estate or trust is equal to its federal taxable income modified by the addition or subtraction of its share of the fiduciary adjustment determined under section 5164.

1. Fiduciary adjustment defined. The fiduciary adjustment is the net amount of the modifications described in section 5122, including subsection 3 if the estate or trust is a beneficiary of another estate or trust, that relates to items of income or deduction of an estate or trus…

A resident estate or trust shall be allowed the credit provided by section 5217‑A, except that the limitation shall be computed by reference to the taxable income of the estate or trust.

The Maine taxable income of a nonresident estate or trust is equal to its share in that portion of the distributable net income of the estate or trust that is derived from or connected with sources in this State, including items of income, gain, loss and deduction from another es…

1. General rule. The share of a nonresident estate or trust in items of income, gain, loss and deduction derived from or connected with sources in this State that are included in the distributable net income of the nonresident estate or trust and the share for purposes of section…

1. Classified as partnership. For purposes of taxation pursuant to this Part, a limited liability company formed under Title 31, former chapter 13 or chapter 21 or qualified to do business in this State as a foreign limited liability company is classified as a partnership, unless…

A partnership is not subject to the tax imposed by this Part. Persons carrying on business as partners are liable for the tax imposed by this Part only in their separate or individual capacities. This section does not apply to the taxes imposed by chapters 819 and 827 or the tax …

1. Modification in determining the adjusted gross income of a resident partner. Any modification described in section 5122 which relates to an item of partnership income, gain, loss or deduction shall be made in accordance with the partner's distributive share, for federal income…

1. General. In determining the adjusted gross income of a nonresident partner of any partnership, there must be included only that part derived from or connected with sources in this State of the partner's distributive share of items of partnership income, gain, loss and deductio…

As used in this subchapter, unless the context otherwise indicates, the following terms have the following meanings. [PL 2019, c. 380, §2 (NEW); PL 2019, c. 380, §5 (AFF).] 1. Administrative adjustment request. "Administrative adjustment request" means an administrative adjustmen…

1. General rule. Except in the case of final federal adjustments required under federal law or regulations to be taken into account by the partnership in the partnership return for the adjustment year or other year, a partner shall, in accordance with section 5227‑A, report and p…

The time periods provided for in this subchapter may be extended: [PL 2019, c. 380, §2 (NEW); PL 2019, c. 380, §5 (AFF).] 1. Automatically for 60 days. Automatically, upon written notice to the assessor, by 60 days for an audited partnership or tiered partner that has 10,000 or m…

The assessor may adopt rules governing the treatment of part-year residents and other rules necessary to implement this subchapter. Rules adopted under this section are routine technical rules as defined in Title 5, chapter 375, subchapter 2‑A.

1. Imposition and rate of tax prior to 2018. For tax years beginning before January 1, 2018, a tax is imposed for each taxable year at the following rates on each taxable corporation and on each group of corporations that derives income from a unitary business carried on by 2 or …

1. Additions. The taxable income of the taxpayer under the laws of the United States shall be increased by: A. The amount of any deduction for tax imposed by this Part or by the equivalent taxing statute of another state; [PL 1981, c. 704, §4 (NEW).] B. For income tax years begin…

1. Nexus established. A corporation has nexus with this State, for the purposes of the tax imposed under section 5200, if that corporation: A. Is organized or commercially domiciled in this State; or [PL 2021, c. 181, Pt. E, §2 (NEW); PL 2021, c. 181, Pt. E, §4 (AFF).] B. Is orga…

Corporate small business investment companies, licensed under the United States Small Business Investment Act of 1958, as amended, and commercially domiciled in Maine and doing business primarily in Maine, shall be exempt from taxation under this Part.

A corporation that is subject to tax under chapter 357 or that would be subject to tax under chapter 357 if the insurance business conducted by such corporation were conducted in this State shall separately account to the State Tax Assessor for income received from a health maint…

1. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings. A. "Bureau" means the Bureau of Alcoholic Beverages and Lottery Operations within the Department of Administrative and Financial Services and includes…

1. Report. Beginning January 31, 2025 and biennially thereafter, the bureau shall, consistent with section 191, provide a report on corporate income tax to the joint standing committee of the Legislature having jurisdiction over taxation matters. The report must include the follo…

1. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings. A. "Adjusted alternative minimum tax," for individuals, estates and trusts, means the excess, if any, of the alternative minimum tax over the amount t…

A tax is imposed for each calendar year or fiscal year ending during that calendar year upon the franchise or privilege of doing business in this State of every financial institution that has Maine net income or Maine assets and that has a substantial physical presence in this St…

As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings. [PL 1997, c. 404, §5 (NEW); PL 1997, c. 404, §10 (AFF).] 1. Affiliated group. "Affiliated group" means a group of 2 or more financial institutions in which more than …

Except as otherwise specifically provided, a financial institution that is taxable both in and outside this State shall apportion its net income and end-of-year assets as provided in this section. A financial institution is considered taxable in a state if in that state the finan…

The franchise tax return required by section 5220, subsection 6 must be filed on or before the 15th day of the 4th month following the end of the financial institution's fiscal year.

The combined report required by section 5220, subsection 6 must include, both in the aggregate and by entity, a list of the net income or loss per books, the property, payroll and receipts in Maine and everywhere as defined in this chapter and the Maine net income of the unitary …