An Act To Lower Income Taxes for Middle-income Families in Maine
Maine Legislature, Session 130, LD 0532
Committee: Taxation
Sponsors: BALDACCI, MATLACK, ROEDER
Amends: 36 MRSA §5111, 36 MRSA §5403, 36 MRSA §5213-B

Legislative Document
No. 532
S.P. 219
In Senate, February 24, 2021
An Act To Lower Income Taxes for Middle-income Families in 
Maine
Received by the Secretary of the Senate on February 22, 2021.  Referred to the Committee 
on Taxation pursuant to Joint Rule 308.2 and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator BALDACCI of Penobscot.
Cosponsored by Representatives: MATLACK of St. George, ROEDER of Bangor.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §5111, sub-§1-F, as enacted by PL 2015, c. 267, Pt. DD, §3, is 
amended to read:
1-F.  Single individuals and married persons filing separate returns; tax years 
beginning from 2017 to 2021.  For tax years beginning on or after January 1, 2017 but not 
later than December 31, 2021, for single individuals and married persons filing separate 
returns:
If Maine taxable income is:
The tax is:
Less than $21,050
5.8% of the Maine taxable income
At least $21,050 but less than $50,000
$1,221 plus 6.75% of the excess over 
$21,050
$50,000 or more
$3,175 plus 7.15% of the excess over 
$50,000
Sec. 2.  36 MRSA §5111, sub-§1-G is enacted to read:
1-G.  Single individuals and married persons filing separate returns; tax years 
beginning 2022.  For tax years beginning on or after January 1, 2022, for single individuals 
and married persons filing separate returns:
If Maine taxable income is:
The tax is:
Less than $21,050
5.8% of the Maine taxable income
At least $21,050 but less than $50,000
$1,221 plus 6.75% of the excess over 
$21,050
At least $50,000 but less than $200,000
$3,175 plus 7.15% of the excess over 
$50,000
$200,000 or more
$13,900 plus 7.95% of the excess over 
$200,000
Sec. 3.  36 MRSA §5111, sub-§2-F, as enacted by PL 2015, c. 267, Pt. DD, §5, is 
amended to read:
2-F.  Heads of households; tax years beginning from 2017 to 2021.  For tax years 
beginning on or after January 1, 2017 but not later than December 31, 2021, for unmarried 
individuals or legally separated individuals who qualify as heads of households:
If Maine taxable income is:
The tax is:
Less than $31,550
5.8% of the Maine taxable income
At least $31,550 but less than $75,000
$1,830 plus 6.75% of the excess over 
$31,550
$75,000 or more
$4,763 plus 7.15% of the excess over 
$75,000
Sec. 4.  36 MRSA §5111, sub-§2-G is enacted to read:
2-G.  Heads of households; tax years beginning 2022.  For tax years beginning on or 
after January 1, 2022, for unmarried individuals or legally separated individuals who 
qualify as heads of households:
If Maine taxable income is:
The tax is:
Less than $31,550
5.8% of the Maine taxable income
At least $31,550 but less than $75,000
$1,830 plus 6.75% of the excess over 
$31,550
At least $75,000 but less than $300,000
$4,763 plus 7.15% of the excess over 
$75,000
$300,000 or more
$20,850 plus 7.95% of the excess over 
$300,000
Sec. 5.  36 MRSA §5111, sub-§3-F, as enacted by PL 2015, c. 267, Pt. DD, §7, is 
amended to read:
3-F.  Individuals filing married joint returns or surviving spouses; tax years 
beginning from 2017 to 2021.  For tax years beginning on or after January 1, 2017 but not 
later than December 31, 2021, for individuals filing married joint returns or surviving 
spouses permitted to file a joint return:
If Maine taxable income is:
The tax is:
Less than $42,100
5.8% of the Maine taxable income
At least $42,100 but less than $100,000
$2,442 plus 6.75% of the excess over 
$42,100
$100,000 or more
$6,350 plus 7.15% of the excess over 
$100,000
Sec. 6.  36 MRSA §5111, sub-§3-G is enacted to read:
3-G.  Individuals filing married joint returns or surviving spouses; tax years 
beginning 2022.  For tax years beginning on or after January 1, 2022, for individuals filing 
married joint returns or surviving spouses permitted to file a joint return:
If Maine taxable income is:
The tax is:
Less than $42,100
5.8% of the Maine taxable income
At least $42,100 but less than $100,000
$2,442 plus 6.75% of the excess over 
$42,100
At least $100,000 but less than $400,000
$6,350 plus 7.15% of the excess over 
$100,000
$400,000 or more
$27,800 plus 7.95% of the excess over 
$400,000
Sec. 7.  36 MRSA §5403, sub-§1, as enacted by PL 2015, c. 267, Pt. DD, §33, is 
amended to read:
1.  Individual income tax rate tables.  For the tax rate tables in section 5111:
A.  Beginning in 2016 and each year thereafter through 2021, by the lowest dollar 
amounts of the tax rate tables specified in section 5111, subsections 1-F, 2-F and 3-F, 
except that for the purposes of this paragraph, notwithstanding section 5402, subsection 
1-B, the "cost-of-living adjustment" is the Chained Consumer Price Index for the 12-
month period ending June 30th of the preceding calendar year divided by the Chained 
Consumer Price Index for the 12-month period ending June 30, 2015; and
B.  Beginning in 2017 and each year thereafter, by the highest taxable income dollar 
amount of each tax rate table, except that for the purposes of this paragraph, 
notwithstanding section 5402, subsection 1-B, the "cost-of-living adjustment" is the 
Chained Consumer Price Index for the 12-month period ending June 30th of the 
preceding calendar year divided by the Chained Consumer Price Index for the 12-
month period ending June 30, 2016; and
C.  Beginning in 2022 and each year thereafter, by the lowest dollar amounts of the tax 
rate tables specified in section 5111, subsections 1-G, 2-G and 3-G, except that for the 
purposes of this paragraph, notwithstanding section 5402, subsection 1-B, the "cost-of-
living adjustment" is the Chained Consumer Price Index for the 12-month period 
ending June 30th of the preceding calendar year divided by the Chained Consumer 
Price Index for the 12-month period ending June 30, 2021;
Sec. 8.  36 MRSA §5213-B is enacted to read:
§5213-B.  Tax reduction credit
1.  Credit allowed.  For tax years beginning on or after January 1, 2022, an eligible 
individual is allowed a credit equal to 10% of the taxes due under this Part after the 
application of all other credits.
2.  Eligible individuals.  For the purposes of this section, "eligible individual" means:
A.  Single individuals and married persons filing separate returns with taxable income 
less than $60,000;
B.  Heads of households with taxable income less than $90,000; and
C.  Individuals filing married joint returns and surviving spouses with taxable income 
less than $120,000.
SUMMARY
This bill provides a credit to reduce income taxes by 10% for individuals filing as single 
individuals and married persons filing separately with taxable income under $60,000, heads 
of households with taxable income under $90,000 and individuals filing married joint 
returns and surviving spouses with taxable income under $120,000.  The bill also provides 
an additional income tax bracket with a tax rate of 7.95% for individuals filing as single 
individuals and married persons filing separately with taxable income exceeding $200,000, 
heads of households with taxable income exceeding $300,000 and individuals filing 
married joint returns and surviving spouses with taxable income exceeding $400,000.