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Maine has a 7.15% top income tax rate, mandatory earned employee leave (no-restriction paid leave), and a CPI-indexed minimum wage. Portland is a growing tech and creative economy hub. Rippling handles ME Revenue Services, MDOL, and earned leave compliance.
Maine is a New England economy with strengths in healthcare, education, tourism, lobster and aquaculture, paper and manufacturing, and a growing technology and creative economy in Portland. Maine payroll is defined by a progressive income tax (top rate 7.15%), mandatory Earned Employee Leave (no-restriction paid leave for 10+ employee employers), and a CPI-indexed minimum wage ($14.65/hour in 2024). No state paid family leave or TDI. Portland, Maine has emerged as a notable creative and technology hub.
Rippling’s Maine payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| FUTA | 6.0% (net 0.6%) | After SUTA credit; first $7,000 |
| ME SUI (MDOL) | New employer 2.12% | On first $12,000 of wages (2024) |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% | No wage base limit |
| Workers’ Compensation | Varies by risk class | Required for most employers |
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| Contribution | Rate | Notes |
|---|---|---|
| Federal Income Tax | Graduated 10–37% | Per W-4 |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% + 0.9% surtax | Surtax above $200K single |
| Maine State Income Tax | 5.8%–7.15% | 3-bracket progressive; top rate 7.15% on income above $58,050 single (2024) |
| Maine Income (Single, 2024) | ME Rate |
|---|---|
| Up to $23,000 | 5.8% |
| $23,001–$54,450 | 6.75% |
| Above $54,450 | 7.15% |
ME withholding remitted to ME Revenue Services. Annual W-3ME reconciliation.
Final Pay: Maine requires final pay on the next regularly scheduled payday. Accrued vacation: Maine Wage Payment Act treats promised vacation as wages if the employer’s policy provides for payout.
Maine has a 3-bracket income tax: 5.8% (up to $23,000); 6.75% ($23,001–$54,450); and 7.15% above $54,450 (single filer, 2024). The top rate of 7.15% applies at a relatively low threshold. Maine’s income tax is among the higher rates in the Northeast, comparable to Vermont. Rippling applies Maine withholding tables.
Maine’s minimum wage is $14.65/hour (January 2024), indexed annually to CPI. Portland, Maine has enacted a higher local minimum: $14.00/hour (though this is often lower than the state minimum, so the state rate prevails). Maine’s tipped minimum wage is $7.08/hour (with tips making up the difference to at least $14.65). All Rippling payroll employees are paid at or above the applicable minimum.
Maine requires workers’ comp coverage for most employers with employees. Coverage through private insurers or the Maine Employers’ Mutual Insurance Company (MEMIC, a state-sponsored insurer). The Maine Workers’ Compensation Board administers claims.
Maine enacted a paid sick leave law (An Act Authorizing Earned Employee Leave, LD 369) effective January 1, 2021: employers with more than 10 employees must allow employees to accrue 1 hour of paid leave per 40 hours worked, up to 40 hours per year. There are no restrictions on how employees may use this leave (no documentation required for permitted uses). Rippling tracks Maine earned employee leave.
