An Act to Reform Income Taxes by Reducing Tax Rates for Each of the 3 Income Tax Brackets
Maine Legislature, Session 131, LD 1213
Committee: Taxation
Sponsors: BALDACCI, TIMBERLAKE
Amends: 36 MRSA §5111, 36 MRSA §5403

Legislative Document
No. 1213
S.P. 494
In Senate, March 20, 2023
An Act to Reform Income Taxes by Reducing Tax Rates for Each of 
the 3 Income Tax Brackets
Reference to the Committee on Taxation suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator BALDACCI of Penobscot.
Cosponsored by Senator: TIMBERLAKE of Androscoggin.
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 2022.  For tax years beginning on or after January 1, 2017 but not 
later than December 31, 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
$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 2023.  For tax years beginning on or after January 1, 2023, for single individuals 
and married persons filing separate returns:
If Maine taxable income is: 
The tax is: 
Less than $23,000 
2.9% of the Maine taxable income 
At least $23,000 but less than $54,450 
$667 plus 5% of the excess over $23,000 
At least $54,450 but less than $80,000 
$2,239 plus 7% of the excess over $54,450 
$80,000 or more 
$4,028 plus 7.15% of the excess over 
$80,000
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 2022.  For tax years 
beginning on or after January 1, 2017 but not later than December 31, 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
$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 2023.  For tax years beginning on or 
after January 1, 2023, for unmarried individuals or legally separated individuals who 
qualify as heads of households:
If Maine taxable income is: 
The tax is: 
Less than $34,500 
2.9% of the Maine taxable income 
At least $34,500 but less than $81,700 
$1,001 plus 5% of the excess over $34,500 
At least $81,700 but less than $120,000 
$3,326 plus 7% of the excess over $81,700 
$120,000 or more 
$6,007 plus 7.15% of the excess over 
$120,000
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 2022.  For tax years beginning on or after January 1, 2017 but not 
later than December 31, 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
$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 2023.  For tax years beginning on or after January 1, 2023, 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 $46,000 
2.9% of the Maine taxable income 
At least $46,000 but less than $108,900 
$1,334 plus 5% of the excess over $46,000 
At least $108,900 but less than $160,000 
$4,479 plus 7% of the excess over 
$108,900 
$160,000 or more 
$8,056 plus 7.15% of the excess over 
$160,000
Sec. 7.  36 MRSA §5403, sub-§1, ¶A, as enacted by PL 2015, c. 267, Pt. DD, §33, 
is amended to read:
A.  Beginning in 2016 and each year thereafter, by the lowest dollar amounts of the tax 
rate tables specified in section 5111, subsections 1‑F, 2‑F and 3‑F and 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, 2015; 
and
 SUMMARY
This bill reduces individual income taxes by reducing the rate of tax on the first income 
tax bracket from 5.8% to 2.9%, the rate of tax on the 2nd income tax bracket from 6.75% 
to 5% and the rate of tax on the 3rd income tax bracket from 7.15% to 7%. The bill 
maintains the current 7.15% rate of tax for single filers on income over $80,000, heads of 
household on income over $120,000 and married joint filers on income over $160,000. The 
rate changes apply to tax years beginning on or after January 1, 2023.