Lawmakers Pass Bill to Expand Income Tax Brackets

The working families that power our economy are navigating out-of-control housing, healthcare, childcare costs, on top of shouldering an unfair income tax burden. 

The inequity in our tax code favors the wealthiest few, and places the bulk of the pressure on folks who are doing their best to make ends meet. The Maine Legislature has passed a bill to fix this.

Currently, Maine has three income tax brackets: 5.8 percent for the lowest income bracket, 6.75 percent for the middle bracket, and 7.15 percent for the highest tax bracket. With these current brackets, Maine has one of the highest income tax rates for low-income taxpayers in the country.

The new law adds three new brackets at the top - with rates between 7 - 8%. What’s more, this bill also cuts the income taxes for average Mainers by increasing the threshold in the second and third tax brackets. The adjusted brackets would ensure that folks do not enter the second bracket until they earn more than $41,600, and do not enter the third until they earn more than $85,000.

This ensures that the wealthiest few are paying their fair share1, just like the rest of us. Thanks to the Maine lawmakers for making this change to help us all!