An Act To Cut Property Taxes for Maine Residential Homeowners
Maine Legislature, Session 130, LD 1289
Committee: Taxation
Sponsors: PERRY
Amends: 36 MRSA §683, 36 MRSA §5111, 36 MRSA §5403

Legislative Document
No. 1289
H.P. 950
House of Representatives, March 30, 2021
An Act To Cut Property Taxes for Maine Residential Homeowners
Received by the Clerk of the House on March 26, 2021.  Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative PERRY of Bangor.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §683, sub-§1-B, as amended by PL 2019, c. 343, Pt. H, §2, is 
further amended to read:
1-B.  Additional exemption.  A homestead eligible for an exemption under subsection 
is eligible for an additional exemption of $5,000 of the just value of the homestead for 
property tax years beginning on April 1, 2016, $10,000 of the just value of the homestead 
for property tax years beginning on April 1, 2017, April 1, 2018 and April 1, 2019 and, 
$15,000 of the just value of the homestead for property tax years beginning on or after 
April 1, 2020 and April 1, 2021, $25,000 of the just value of the homestead for property 
tax years beginning on April 1, 2022,  $35,000 of the just value of the homestead for 
property tax years beginning on April 1, 2023 and $45,000 for property tax years beginning 
on or after April 1, 2024.
Sec. 2.  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 in 2017 to 2021.  For tax years beginning on or after January 1, 2017 but no 
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. 3.  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 $300,000
$3,175 plus 7.15% of the excess over 
$50,000
$300,000 or more
$21,050 plus 7.95% of the excess over 
$300,000
Sec. 4.  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 in 2017 to 2021.  For tax years 
beginning on or after January 1, 2017 but no 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. 5.  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 $450,000
$4,763 plus 7.15% of the excess over 
$75,000
$450,000 or more
$31,575 plus 7.95% of the excess over 
$450,000
Sec. 6.  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 in 2017 to 2021.  For tax years beginning on or after January 1, 2017 but no 
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. 7.  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 $600,000
$6,350 plus 7.15% of the excess over 
$100,000
$600,000 or more
$41,200 plus 7.95% of the excess over 
$600,000
Sec. 8.  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;
SUMMARY
This bill creates a new income tax rate of 7.95% for tax years beginning on or after 
January 1, 2022 for income exceeding $300,000 for single individuals and married persons 
filing separately, $450,000 for individuals filing as heads of household and $600,000 for 
individuals filing married joint returns or as surviving spouses.  The bill also increases the 
homestead property tax exemption from $25,000 in 2021 to $35,000 in 2022, $45,000 in 
2023 and $55,000 in 2024.