MaineMaine amendment would change income tax rates and exempt electricity and diapers
This proposed Maine amendment would change income taxes and credits and set later start dates for sales tax exemptions on residential electricity and diapers.
What it does
For tax years starting in 2026, the amendment would lower the rate on the first dollars of taxable income and raise the income cutoffs for existing rates. It would also add two higher tax brackets, with rates of 7.75% and 8.95%.
For tax years starting in 2026, the sales tax fairness credit would have higher amounts and income cutoffs that rise with inflation. Starting in 2027, some older residents could receive a larger property tax fairness credit.
Starting October 1, 2026, all residential electricity sales and deliveries would be exempt from sales tax. Starting January 1, 2027, sales of disposable and reusable diapers, including certain reusable-diaper supplies, would also be exempt.
For property tax years starting on or after April 1, 2027, the additional exemption would rise to $22,000 of a home's value, for a total exemption of up to $32,000.
Argument forLower rates on the first dollars of taxable income and higher cutoffs for existing rates could reduce income taxes for many Maine filers.
Argument againstThe new top income tax rates could raise bills for high earners, and the state would also set aside money for one-time administrative costs.
More detail
The amendment would change income tax rates and income cutoffs for each filing group. The tables cover single filers, heads of household, married people filing jointly, and surviving spouses allowed to file jointly. The new tax tables would apply to tax years beginning on or after January 1, 2026.
The amendment would update the sales tax fairness credit and provide a larger property tax fairness credit for some older residents. The sales tax fairness credit amounts vary by filing status and qualifying children or dependents. The older-resident rule applies to qualifying residents. The older-resident credit rule applies to Maine residents age 65 or older with annual income at or below $36,000, adjusted for inflation. On a joint return, only one spouse must be 65 or older. The amendment says it would not eliminate the existing property tax fairness credit. The updated sales tax fairness credit would apply to tax years beginning on or after January 1, 2026. The older-resident credit rule would start with tax years beginning on or after January 1, 2027.
The amendment would exempt residential electricity and certain diapers from sales tax. The diaper provision covers disposable and reusable diapers for people who cannot, or have difficulty, controlling bladder or bowel movements. The electricity exemption would cover residential buildings used for living and sleeping, but not hotels. The diaper exemption would cover diapers marketed for adults or children, including specified covers, wraps, and fasteners for reusable diapers. The electricity exemption would begin October 1, 2026. The diaper exemption would begin January 1, 2027.
The amendment would increase the additional homestead exemption for property tax purposes. The provision applies to eligible homes for property tax purposes. A homestead must qualify for the existing homestead exemption to receive the additional exemption. The higher additional exemption would apply to property tax years beginning on or after April 1, 2027.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 29The Bill was in the possession of the House when the Legislature adjourned Sine Die and was placed in the Legislative Files. (DEAD)Latest
- Apr 9Later today assigned.
- Apr 9On motion of Representative HASENFUS of Readfield, TABLED pending ACCEPTANCE of Either Report.
- Apr 9Reports READ.
- Apr 8Reported Out - OTP-AM/ONTP
- Mar 12Voted - Divided Report
- Mar 12Work Session Held
- 2025
- Jun 25Carried over, in the same posture, to any special or regular session of the 132nd Legislature, pursuant to Joint Order SP 800.
- Jun 18Carry Over Approved
- Jun 17ORDERED SENT FORTHWITH.
- Jun 17The House RECEDED and CONCURRED to COMMIT the Bill and accompanying papers to the Committee on TAXATION.
- Jun 16Sent down for concurrence
- Jun 16On motion by Senator PIERCE of Cumberland Bill and accompanying papers COMMITTED to the Committee on TAXATION in NON-CONCURRENCE.Minor
- Jun 16Taken from the table by the President
- Jun 13On motion by Senator PIERCE of Cumberland Tabled until Later in Today's Session, pending ENACTMENT
- Vote recorded Enactment. Result: pass.Lower
- Jun 13Sent for concurrence. ORDERED SENT FORTHWITH.
- Jun 13(Yeas 76 - Nays 71 - Absent 2 - Excused 2)
- Jun 13ROLL CALL NO. 474
- Jun 13PASSED TO BE ENACTED.Became Law
- Jun 12Under suspension of the Rules, READ A SECOND TIME and PASSED TO BE ENGROSSED AS AMENDED by Committee Amendment "A" (H-649) in concurrenceMinor
- Vote recorded ACCEPT MAJORITY OUGHT TO PASS AS AMENDED REPORT. Result: pass.Upper
- Jun 12Committee Amendment "A" (H-649) READ and ADOPTED.Minor
- Jun 12Bill READ ONCE.Minor
- Jun 12Roll Call Ordered Roll Call Number 476 Yeas 18 - Nays 17
- Jun 12Senator BALDACCI of Penobscot asked and received leave of the Senate to Withdraw their motion to Table Until Later in Today's Session.Major
- Jun 12Motion by Senator BALDACCI of Penobscot to Table Until Later in Today's Session
- Jun 12On motion by Senator GROHOSKI of Hancock the Majority Ought to Pass as Amended Report ACCEPTED. PREVAILED
- Jun 12Reports Read
- Jun 11Reported Out - OTP-AM/ONTP
- Vote recorded ACC MAJ OTP AS AMENDED REP. Result: pass.Lower
- Jun 11Sent for concurrence. ORDERED SENT FORTHWITH.
- Jun 11The Bill was PASSED TO BE ENGROSSED as Amended by Committee Amendment "A" (H-649).Minor
- Jun 11Under suspension of the rules, the Bill was given its SECOND READING without REFERENCE to the Committee on Bills in the Second Reading.
- Jun 11Committee Amendment "A" (H-649) was READ and ADOPTED.Minor
- Jun 11The Bill was READ ONCE.Minor
- Jun 11(Yeas 75 - Nays 67 - Absent 7 - Excused 2)
- Jun 11ROLL CALL NO. 441
- Jun 11On motion of Representative CLOUTIER of Lewiston, the Majority Ought to Pass as Amended Report was ACCEPTED.
- Jun 11Reports READ.
- May 21Voted - Divided Report
- May 21Work Session Held
- Apr 10Work Session Held - TABLED
- Mar 21Carried over, in the same posture, to the next special or regular session of the 132nd Legislature, pursuant to Joint Order SP 519.
- Mar 13Work Session Held - TABLED
- Jan 16The Bill was REFERRED to the Committee on TAXATION pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.Minor
- Jan 16Received by the Clerk of the House on January 16, 2025.Introduced
Taxes & Budget