An Act To Amend the Individual Income Tax Laws
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §5111, sub-§1-D, as enacted by PL 2013, c. 368, Pt. Q, §4, is amended to read:
1-D. Single individuals and married persons filing separate returns; tax years beginning 2014. For tax years beginning on or after January 1, 2014 but not later than December 31, 2014, for single individuals and married persons filing separate returns:
| If Maine Taxable income is: | The tax is: |
| At least $5,200 but less than $20,900 | 6.5% of the excess over $5,200 |
| $20,900 or more | $1,021 plus 7.95% of the excess over $20,900 |
Sec. 2. 36 MRSA §5111, sub-§1-E is enacted to read:
1-E. Single individuals and married persons filing separate returns; tax years beginning 2015. For tax years beginning on or after January 1, 2015, for single individuals and married persons filing separate returns:
| If Maine Taxable income is: | The tax is: |
| At least $5,200 but less than $20,900 | 6.5% of the excess over $5,200 |
| $20,900 but less than $120,000 | $1,021 plus 7.95% of the excess over $20,900 |
| $120,000 or more | $8,899 plus 10% of the excess over $120,000 |
Sec. 3. 36 MRSA §5111, sub-§2-D, as enacted by PL 2013, c. 368, Pt. Q, §6, is amended to read:
2-D. Heads of households; tax years beginning 2014. For tax years beginning on or after January 1, 2014 but not later than December 31, 2014, for unmarried individuals or legally separated individuals who qualify as heads of households:
| If Maine Taxable income is: | The tax is: |
| At least $7,850 but less than $31,350 | 6.5% of the excess over $7,850 |
| $31,350 or more | $1,528 plus 7.95% of the excess over $31,350 |
Sec. 4. 36 MRSA §5111, sub-§2-E is enacted to read:
2-E. Heads of households; tax years beginning 2015. For tax years beginning on or after January 1, 2015, for unmarried individuals or legally separated individuals who qualify as heads of households:
| If Maine Taxable income is: | The tax is: |
| At least $7,850 but less than $31,350 | 6.5% of the excess over $7,850 |
| $31,350 but less than $180,000 | $1,528 plus 7.95% of the excess over $31,350 |
| $180,000 or more | $13,346 plus 10% of the excess over $180,000 |
Sec. 5. 36 MRSA §5111, sub-§3-D, as enacted by PL 2013, c. 368, Pt. Q, §8, is amended to read:
3-D. Individuals filing married joint return or surviving spouses; tax years beginning 2014. For tax years beginning on or after January 1, 2014 but not later than December 31, 2014, for individuals filing married joint returns or surviving spouses permitted to file a joint return:
| If Maine Taxable income is: | The tax is: |
| At least $10,450 but less than $41,850 | 6.5% of the excess over $10,450 |
| $41,850 or more | $2,041 plus 7.95% of the excess over $41,850 |
Sec. 6. 36 MRSA §5111, sub-§3-E is enacted to read:
3-E. Individuals filing married joint return or surviving spouses; tax years beginning 2015. For tax years beginning on or after January 1, 2015, for individuals filing married joint returns or surviving spouses permitted to file a joint return:
| If Maine Taxable income is: | The tax is: |
| At least $10,450 but less than $41,850 | 6.5% of the excess over $10,450 |
| $41,850 but less than $240,000 | $2,041 plus 7.95% of the excess over $41,850 |
| $240,000 or more | $17,794 plus 10% of the excess over $240,000 |
summary
This bill creates a new income tax bracket with a rate of 10% and a threshold of $120,000 for single filers, $180,000 for head-of-household filers and $240,000 for persons filing joint returns.