Maine Income Tax to Decrease
Here’s something Mainers have not heard for some time: Lawmakers have decided to decrease the state's income tax rate. Governor Baldacci has signed LD 1495, which will lower the tax rate from 8.5 to 6.5 percent for income up to $250,000. The new tax rate for those earning above $250,000 will be 6.85 percent. The measure also broadens the sales tax, however, to include more goods and services. The list of services that will be taxed at a 5 percent rate includes, but is not limited to, installation, repair and maintenance services and courier services. The tax overhaul plan increases the meals and lodging tax from 7.5 to 8 percent tol help fund increased tourism marketing initiatives.