TAXES 17-15, Maine State Income Tax Withholding
Published: March 23, 2017
Effective: Pay Period 06, 2017
Summary
The income tax withholdings for the State of Maine will change as follows:
- The standard deduction adjustment for Single and Married will increase.
- The Single and Married income tax withholdings will increase.
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 |
Withholding Formula (Effective Pay Period 06, 2017)
- 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 tables, 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 $70,000
$8,750
Over $70,000 but not over $145,000
[1 - {(Taxable wages - $70,000) / $75,000}] x $8,750
Over $145,000
$0
Married Taxpayer
Annualized Gross Pay
Standard Deduction Adjustment
Over $0 but not over $140,000
$20,350
Over $140,000 but not over $290,000
[1 - {(Taxable wages - $140,000) / $150,000}] x $20,350
Over $290,000
$0
- Determine the exemption allowance by applying the following guideline and subtracting this amount from the results in step 4 to compute the taxable income:
Exemption Allowance = $4,050 x Number of Exemptions
- Apply the taxable income in step 6 to the following table(s) to determine the annual Maine tax withholding:
Single Tax Withholding Table
Taxable Wages
Amount of Tax
Over $0 but not over $21,100
5.8%
Over $21,100 but not over $50,000
$1,224.00 plus 6.75% of excess over $21,100
Over $50,000 but not over $200,000
$3,175.00 plus 7.15% of excess over $50,000
Over $200,000
$13,900.00 plus 10.15% of excess over $200,000
Married Tax Withholding Table
Taxable Wages
Amount of Tax
Over $0 but not over $42,250
5.8%
Over $42,250 but not over $100,000
$2,451.00 plus 6.75% excess over $42,250
Over $100,000 but not over $200,000
$6,349.00 plus 7.15% of excess over $100,000
Over $200,000
$13,499.00 plus 10.15% of excess over $200,000
- Divide the annual Maine income tax withholding calculated in step 7 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.
Resources
To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) homepage. Select the Publications tab in the center ribbon. Select U.S. Income Tax Formulas from the Publication menu to launch the tax map. Select 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.