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Do you use the withholding tables to calculate Maine income tax withholding for your employees? Are you aware that the tables have changed?

Maine Revenue Service (MRS) recently changed their computation method but not the actual tax rates.


Prior to this year, MRS included the standard deduction amount in the withholding tax rate schedules, but this year it was removed and must be subtracted from the annualized income amount to find the right amount in the tax rate schedule.

MRS changed the approach “to institute a more transparent method to calculate the Maine withholding in response to taxpayer and software developer feedback. With certain exceptions, the 2017 withholding amounts for low and middle-income employees are substantially the same as the 2016 withholding amounts.”

Employers are encouraged to talk with their payroll provider or tax professional on this change to ensure proper withholding.

For More Information

The withholding tables, the new percentage method, and contact information for the Maine Revenue Services can be found online at: http://www.maine.gov/revenue/forms/with/2017/17_WH_Tab&instructions.pdf