Maine issues new withholding tables; implement immediately

Maine has issued new wage-bracket and percentage method withholding tables to be implemented immediately. The tables have been updated to reflect the recent repeal of the income tax surcharge on individuals with income greater than $200,000. While the 2017 Maine personal exemption amount ($4,050) is the same as the federal exemption amount, the Maine basic standard deduction amounts are different: $11,600 for single; $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 percentage method for calculating Maine withholding (see pages 6 & 7) and the withholding tables in the booklet have been adjusted to reflect these amounts. Note, for example, that the exemption amount in Step 2 on page 6 is $4,050 and that Step 3 has been updated with a new calculation for the phase-out of the standard deduction amounts. Also note the updated tax rate schedules in Step 6. All of the tables will be reproduced in the Payroll Management Guide in a future release at ¶6548 and ¶6549. (Maine Revenue Services Withholding Tables for Income Tax, Rev. 7/17.)

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