Maine payroll taxes for employers (2026)
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A new Maine employer pays a combined 2.54% on the first $12,000 of each worker's 2026 wages to the Maine Department of Labor's Bureau of Unemployment Compensation, and Maine taxes income at 5.8% to 7.15% (Maine Revenue Services 2026 rate schedule, checked October 2026). The bigger line for most businesses is Maine Paid Family and Medical Leave: 1% of wages for employers with 15 or more employees, and benefits have been payable since May 1, 2026.
- SUTA wage base
- $12,000
- New employer SUTA rate
- 2.54% combined
- State income tax
- Yes
- Minimum wage
- $15.10
On this page
Paid leave and the other rules that set Maine apart
Maine's paid leave premium is charged on wages up to the Social Security wage base, $184,500 in 2026. With 15 or more employees the rate is 1%, and you may deduct up to half (0.5%) from the worker. Under 15 employees the rate is 0.5%, and you may deduct all of it. Both rates are fixed for 2025 through 2027. Contributions began January 1, 2025. In 2027 the cap rises to $192,300 with the federal base, and medical leave benefits start showing on the W-2.
The 2.54% unemployment figure is three pieces added together: 2.23% UI, 0.14% for the Competitive Skills Scholarship Fund and 0.17% for the Unemployment Program Administrative Fund. Even an employer at the 0.00% UI floor pays the two funds, which is why the minimum combined rate is 0.31%. The top combined rate is 6.60%. Maine publishes no separate construction rate.
- New hires in 7 days: much shorter than the 20-day federal maximum (or two monthly electronic transmissions 12 to 16 days apart).
- Pay at least every 16 days under 26 MRSA 621-A, so monthly payroll is out.
- Vacation payout: final wages are due by the next established payday (26 MRSA 626), and employers with 11 or more employees must pay out accrued vacation.
- Minimum wage $15.10, with a $7.55 tipped cash wage for workers who get more than $191 a month in tips.
- New income tax surcharge: from tax year 2026, a 2% surcharge applies to taxable income over $1,000,000 for single filers.
- PEO registration: employee leasing companies register with the Bureau of Consumer Credit Protection, which is moving the process to NMLS.
Maine employer payroll facts at a glance
| Item | Maine rule or rate | Official source |
|---|---|---|
| SUTA taxable wage base (2026) | $12,000 | source ; source |
| New employer SUTA rate | 2.54% combined (2.23% UI + 0.14% CSSF + 0.17% UPAF) | source ; source |
| New employer rate, construction | No separate construction rate published | |
| SUTA rate range | 0.31% combined (0.00% UI + CSSF + UPAF) to 6.60% combined (6.29% UI + CSSF + UPAF) | |
| Surcharges and admin fees | Competitive Skills Scholarship Fund (CSSF) 0.14%; Unemployment Program Administrative Fund (UPAF) 0.17% | |
| 2027 rates published? | no | |
| Unemployment agency | Maine Department of Labor, Bureau of Unemployment Compensation | source |
| State income tax withholding | Yes. Brackets 5.8%, 6.75%, 7.15% (single: under $27,400; $27,400 to $64,850; $64,850+). New 2% surcharge on taxable income over $1,000,000 (single) from tax year 2026. Supplemental rate not confirmed (withholding page did not load). | source |
| Paid leave or disability programs | Maine Paid Family and Medical Leave: 1% of wages for employers with 15+ employees (employer may deduct up to half, employee max 0.5%); 0.5% for employers under 15 (may deduct all from employees); rates fixed for 2025 to 2027; contributions since Jan 1 2025; benefits since May 1 2026; wages capped at Social Security wage base ($184,500 in 2026; $192,300 in 2027 per SSA) | source ; source |
| Minimum wage 2026 | $15.10 | source ; source |
| Tipped cash wage 2026 | $7.55 (50% of minimum; tipped = more than $191/month in tips) | |
| Minimum wage 2027 | Not announced | |
| New hire reporting | 7 days after hire (or two monthly electronic transmissions 12 to 16 days apart) | source |
| Pay frequency rule | At regular intervals not to exceed 16 days (26 MRSA 621-A) | |
| Final paycheck rule | Fired or quit: no later than the next established payday (26 MRSA 626); accrued vacation payable for employers with 11+ employees | source |
| Workers comp required | Every private employer must secure coverage (39-A M.R.S. 401), except employers of domestic service workers and qualifying agricultural or aquacultural employers that carry the required liability and medical coverage. No headcount threshold. Not monopolistic | source |
| PEO license or registration | yes: employee leasing company registration with the Bureau of Consumer Credit Protection (Dept. of Professional and Financial Regulation), moving to NMLS under Bureau Rule Ch. 702; public list not found |
Checked October 16, 2026 against the official sources linked in each row.
Registering with Maine agencies
- Get a federal EIN.
- Register for unemployment with the Maine Department of Labor. The employer page offers a printable form you mail to the Unemployment Tax Section, 47 State House Station, Augusta ME 04333-0047, or fax to 207-287-3733, and points to the ReEmployME employer portal.
- Register for withholding with Maine Revenue Services and load the 2026 brackets (5.8%, 6.75%, 7.15%).
- Register with Maine Paid Leave and decide how much of the premium to deduct from employees.
- Report each new hire within 7 days (me-newhire.com).
- Secure workers comp. Every private employer needs it under 39-A M.R.S. 401, with narrow exceptions for domestic workers and some farm and aquaculture employers.
What a $50,000 worker costs a Maine employer
This example assumes 15 or more employees and that you pass half the paid leave premium to the worker.
| Line | How it is figured | Annual cost |
|---|---|---|
| Social Security | 6.2% x $50,000 | $3,100.00 |
| Medicare | 1.45% x $50,000 | $725.00 |
| FUTA | 0.6% x $7,000 | $42.00 |
| Maine UI (combined) | 2.54% x $12,000 wage base | $304.80 |
| Maine Paid Family and Medical Leave, employer half | 0.5% x $50,000 (1% total, employee pays up to half) | $250.00 |
| Total employer payroll tax | Sum of the lines above | $4,421.80 |
Source: IRS Publication 15 (2026); Maine Department of Labor 2026 UI tax rates; Maine Paid Leave employer FAQ. Checked Oct 2026.
If you absorb the full 1% instead, the paid leave line doubles to $500.00 and the total becomes $4,671.80. A business with fewer than 15 employees owes 0.5% x $50,000 = $250.00 in total premium and may deduct all of it, which brings the employer cost down to $4,171.80. Check your own UI rate against the 2026 SUTA rates by state, and see the 2026 minimum wage list if you pay hourly.
Payroll services and PEOs in Maine
A Maine-ready payroll service needs four things: the combined UI rate split into its three funds, the paid leave premium with your chosen employee share, a 7-day new hire report and a pay schedule no longer than 16 days. Ask for a sample quarterly return before you switch.
Compare monthly prices on our best payroll software list. If you would rather hand off workers comp and benefits too, look at the PEO rankings and PEO pricing per employee. Hiring across the border? Compare New Hampshire payroll rules.
Frequently asked questions
What is the Maine unemployment tax rate for new employers in 2026?
How much is the Maine paid leave payroll tax?
How much does a $50,000 employee cost in Maine payroll taxes?
How quickly must Maine employers report new hires?
Does Maine require payout of unused vacation at termination?
Sources (10)
- Maine Department of Labor: 2026 UI tax rates (checked Oct 16, 2026)
- Maine Department of Labor: Information for employers (checked Oct 16, 2026)
- Maine Paid Leave: Employer FAQ (2026) (checked Oct 16, 2026)
- Social Security Administration: Contribution and benefit base (checked Oct 16, 2026)
- Maine Revenue Services: 2026 individual income tax rate schedules (checked Oct 16, 2026)
- Maine New Hire Reporting: Reporting fundamentals (checked Oct 16, 2026)
- Maine Legislature: 26 MRSA 626 final wages (checked Oct 16, 2026)
- Maine Legislature: 39-A M.R.S. 401 workers compensation (checked Oct 16, 2026)
- IRS: Publication 15 (Circular E), 2026 (checked Oct 16, 2026)
- dol.gov/agencies/whd/minimum-wage/state (checked October 2026)
This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.