Additional FAQs about corporate income tax can be found under the Coronavirus (COVID-19) FAQs.
- What is Maine's Corporate Income Tax Rate?
- When does Maine have jurisdiction to impose a tax on a corporation?
- Who must file Form 1120ME?
- When is the Maine corporate income tax return due?
- How do I request an extension of time to file Form 1120ME?
- Can I access my corporate income tax account online?
- Can I file my corporate income tax return electronically?
- I am not able to electronically file my corporate income tax return. Can I request a waiver from the electronic filing requirement?
1. What is Maine’s Corporate Income Tax Rate?
For tax years beginning on or after January 1, 2018, the Maine corporate tax rates are as follows:
If adjusted federal taxable income* is:
| Greater than | But not over | The gross tax is: |
|---|---|---|
| $0 | $350,000 | 3.5% of adjusted federal taxable income* |
| $350,000 | $1,050,000 | $12,250 plus 7.93% of the excess over $350,000 |
| $1,050,000 | $3,500,000 | $67,760 plus 8.33% of the excess over $1,050,000 |
| $3,500,000 or more | $271,845 plus 8.93% of the excess over $3,500,000 |
For tax years beginning before January 1, 2018, the Maine corporate tax rates are as follows:
If adjusted federal taxable income* is:
| Greater than | But not over | The gross tax is: |
|---|---|---|
| $0 | $25,000 | 3.5% of adjusted federal taxable income* |
| $25,000 | $75,000 | $875 plus 7.93% of the excess over $25,000 |
| $75,000 | $250,000 | $4,840 plus 8.33% of the excess over $75,000 |
| $250,000 or more | $19,418 plus 8.93% of the excess over $250,000 |
*Adjusted federal taxable income means federal taxable income as adjusted by Maine addition and subtraction income modifications.
Revised: February 25, 2021
2. When does Maine have jurisdiction to impose a tax on a corporation?
When a corporation’s presence in, or connection with, a state reaches a level sufficient to subject the corporation to that state's taxing jurisdiction, the corporation is said to have “nexus” with that state.
For tax years beginning on or after January 1, 2022
The corporate income tax law is simplified by establishing clearly defined, objective nexus thresholds as a practical structure for the current general "economic nexus" standard. These so-called factor presence thresholds clarify the minimum thresholds that, when exceeded by a corporation, subject that corporation to the Maine corporate income tax. The new thresholds create a safe harbor for corporations with little activity within the State that nonetheless have nexus under current law due to a small, but greater than de minimis, physical presence in Maine.
Under the new law, a corporation has nexus with Maine if the corporation is organized or commercially domiciled in Maine or if, in Maine, any of the following thresholds are exceeded: $250,000 of property, $250,000 in payroll, $500,000 in sales in Maine, or 25% of the corporation’s total property, payroll, or sales is in Maine.
Exception for certain out-of-state suppliers of spirits
For tax years beginning on or after January 1, 2022, a corporation domiciled in a state other than Maine that approves, from a location outside Maine, orders of spirits placed by the Maine Bureau of Alcoholic Beverages and Lottery Operations (BABLO) or an agent or contractor of BABLO, may not be considered to have sufficient nexus to subject the corporation to Maine income tax, based solely on the following in-state activities:
- The sale of spirits to BABLO, even if the amount of the sales exceeds the nexus thresholds in 36 M.R.S. § 5200-B(1);
- The shipment of spirits from outside Maine to any warehouse operated or used by BABLO or to another facility as directed by BABLO;
- The storage of spirits at any warehouse operated by or used by BABLO or at another facility as directed by BABLO, even if the value of those spirits exceeds the nexus thresholds in 36 M.R.S. § 5200-B(1); or,
- Any other activity required by BABLO to facilitate fulfillment of its orders of spirits.
Spirits manufactured or produced outside the State and shipped into the State pursuant to an order for spirits from BABLO do not, when the order is approved outside the State, become subject to Maine income tax solely as a result of a delay in transfer of title of those spirits to BABLO. See 36 M.R.S. § 5202-D.
For tax years beginning before January 1, 2022
Nexus with Maine is generally created by conducting business in Maine, or by owning or using property in Maine. However, a physical presence in the state is not necessary to establish nexus. MRS Rule 808 provides detailed criteria about activities that create Maine nexus for income tax purposes prior to tax year 2022. For this period, a determination about whether or not a corporation has nexus with Maine must be made in light of all of the relevant facts.
If you need assistance determining whether a corporation has nexus with Maine, you may complete a nexus questionnaire and send it to MRS with a cover letter that identifies who MRS should contact for more information. You must enter a response to every question. The questionnaire is available in the corporate income tax section of www.maine.gov/revenue/tax-return-forms.
Revised: March 7, 2023
A corporation that has nexus with Maine is required to file Form 1120ME if it has Maine income and is subject to federal corporate income tax. Tax exempt corporations with unrelated business income and subchapter S corporations with certain taxable gains must file Form 1120ME to report taxable income.
Note: Certain financial institutions and insurance companies that are subject to Maine franchise tax or insurance premiums tax, are not subject to Maine corporate income tax. For more information, see the corporate income tax instructions available at www.maine.gov/revenue/tax-return-forms.
Revised: April 8, 2022
4. When is the Maine corporate income tax return due?
The Maine corporate income tax return (Form 1120ME) is due on the same date as your federal corporate income tax return (the fifteenth day of the fourth month after the end of the tax year), without regard to an extension of time to file. The Maine filing due date for tax on unrelated business income (as reported on federal Form 990T) is the same as the federal due date, generally:
- 3 1/2 months after the end of the tax year (April 15 for calendar year filers) for employees' trusts as defined in section 401(a), IRAs (including SEPs and SIMPLEs), Roth IRAs, Coverdell ESAs, or Archer MSAs, and
- 4 1/2 months after the end of the tax year (May 15th for calendar year filers) for all other organizations.
Revised: April 2, 2024
5. How do I request an extension of time to file Form 1120ME?
Maine Revenue Services does not require a written request to obtain an automatic extension to file. If you are unable to file your return by the original due date, Maine allows an automatic six-month extension of time in which to file a corporate income tax return. Requests for additional time to file the Maine return beyond the automatic six-month extension period must be submitted in writing prior to the expiration of the extension period. Generally, the total Maine extension period may not exceed eight months.
However, in the case the Internal Revenue Service has granted an extension of time to file the federal return, the date for filing the Maine return is automatically extended for the same period, plus 30 days, as long as proof of the federal extended due date is attached to the Maine return when filed.
Revised: April 2, 2024
6. Can I access my corporate income tax account online?
Yes. Corporate taxpayers and practitioners can register to use the Maine Tax Portal (“MTP”) available at revenue.maine.gov. The MTP allows corporate taxpayers and practitioners to register new accounts, file returns, make payments, view bills and notices, and perform online account maintenance activities such as updating address(es) and closing an account. Depending on access level, authorized representatives may view submissions, letters, messages, and submit payments and returns on a taxpayer’s behalf. For more information and instructions on the MTP visit www.maine.gov/revenue/portal.
Revised: April 2, 2024
7. Can I file my corporate income tax return electronically?
Maine Rule 104, Section .03(D) requires certain corporations to file returns by electronic data submission. Maine corporate income tax returns may be filed electronically using Modernized e-File (“MeF”) or using the MTP.
For more information, see Maine Rule 104 available at: www.maine.gov/revenue/publications/rules.
Revised: May 28, 2024
8. I am not able to electronically file my corporate income tax return. Can I request a waiver from the electronic filing requirement?
Yes. Taxpayers unable to meet the electronic filing requirement because of undue hardship may request a waiver from the State Tax Assessor. The request must be in writing and must include the name, address, federal employer ID number of the corporation, a detailed explanation of why filing electronically poses a significant hardship and when the taxpayer will be able to comply with the electronic filing requirement.
| Mail waiver request to: | Maine Revenue Services |
| Corporate Tax Unit | |
| P.O. Box 9107 | |
| Augusta, ME 04332-9107 | |
| OR email to: | corporate.tax@maine.gov |
For more information on Maine electronic filing requirements (Rule 104) and information on Maine electronic payment requirements (Rule 102), go to www.maine.gov/revenue (select “Laws & Rules”).
Revised: April 8, 2022