TAXES 16-06, Maine State Income Tax Withholding
Published: February 1, 2016
Effective: Pay Period 01, 2016
Summary
The income tax withholding formula for the State of Maine has been changed as follows:
- The exemption allowance increased from $4,000 to $4,050.
- The adjustment for nonresident aliens has been eliminated.
- A new adjustment for phasing out the State's standard deduction has been added.
- The Single and Married withholding tables changed.
No action on the part of the employee or the personnel office is necessary.
Tax Formula
State Abbreviation: |
ME |
State Tax Withholding State Code: |
23 |
Acceptable Exemption Form: |
W-4 or W-4ME |
Basis for Withholding: |
State Exemptions |
Acceptable Exemption Data: |
S, M/Number of Allowances |
TSP Deferred: |
Yes |
Special Coding: |
Determine the Total Number of Allowances Claimed field as follows: First Position - S = Single; M = Married. Second and Third Positions - Enter the number of allowances claimed. If less than 10, precede with a 0 (zero). |
Additional Information: |
None |
- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account - health care and dependent care deductions) from the amount computed in step 1.
- Add the taxable biweekly fringe benefits (i.e., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages by 26 to obtain the gross annual wages.
- Add the standard deduction adjustment from the following table, based on marital status, to the annualized gross pay to get adjusted annualized gross pay.
Single Taxpayer:
Annualized Gross Pay
Standard Deduction Adjustment
Over $0 but not over $67,150
$0.00
Over $67,150 but not over $142,150
[(Taxable wages - $67,150) / $75,000] x $11,600
Over $142,150 and over
$11,600
Married Taxpayer:
Annualized Gross Pay
Standard Deduction Adjustment
Over $0 but not over $137,150
$0.00
Over $137,150 but not over $287,150
[(Taxable wages - $137,150) / $150,000] x $23,200
Over $287,150 and over
$23,200
- Multiply the number of exemptions claimed and subtract this amount from the result of step 4 to determine the taxable income.
Exemption Allowance = $4,050 x Number of Exemptions.
- Apply the taxable income in step 6 to the following tables to determine the annual Maine tax withholding.
Single Tax Withholding Table
Taxable Wages
Amount of Tax
Over $0 but not over $8,750
$0.00 plus 0.0% excess over $0
Over $8,750 but not over $29,800
$0.00 plus 5.8% excess over $8,750
Over $29,800 but not over $46,250
$1,221.00 plus 6.75% excess over $29,800
Over $46,250 and over
$2,331.00 plus 7.15% excess over $46,250
Married Tax Withholding Table
Taxable Wages
Amount of Tax
Over $0 but not over $20,350
$0.00 plus 0.0% excess over $0
Over $20,350 but not over $62,450
$0.00 plus 5.8% excess over $20,350
Over $62,450 but not over 95,350
$2,442.00 plus 6.75% excess over $62,450
Over $95,350 and over
$4,663.00 plus 7.15% excess over $95,350
- Divide the annual Maine income tax withholding determined by 26 and round to the nearest dollar to obtain the biweekly Maine income tax withholding.
- Add additional amount or percentage elected by the employee to the pay period tax calculated in the above step and round to the nearest dollar to determine the amount of tax to be withheld for this pay period.
Additional Resources
To view the updated tax formula go to the HR and Payroll Clients page and click the Publications tab in the center ribbon. Select U.S. Income Tax Formulas from the Publication menu to launch the tax map. Click the desired State from the map provided for the formula.
Inquiries
For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the Internet using the Requester Console.