Maine issues new withholding tables for 2016

Maine has issued 2016 wage-bracket, percentage method withholding tables. All of the tables will be reproduced in the Payroll Management Guide at ¶6548 and ¶6549 in a future release. There are new taxable income rate brackets of 5.8%, 6.75% and 7.15%. Although the 2016 Maine personal exemption amount ($4,050) is the same as the federal exemption amount, the Maine basic standard deduction amounts are different, increased to $11,600 for single and $23,200 for married individuals filing joint returns. In addition, the Maine standard deduction amounts are phased out for single taxpayers with Maine income over $70,000 and married taxpayers filing joint returns with Maine income over $140,000.The supplemental wage rate will remain 5%. The interest on payments not paid when due will remain 7% for 2016. The percentage method withholding tables are reproduced in this Report Letter on pages 11—12. (Maine Revenue Services, 2016 Maine Income Withholding Tables for Individual Income Tax, 11/15.)

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