Self-employed taxes and LLC costs in Maine, 2026
Maine reaches its third bracket at a modest income and added a 2% surcharge on very high incomes in 2026.
Total tax on this income in 2026
$21,454
Put aside 25% of each payment · $5,364 per quarter
| Self-employment tax (15.3%) | $12,010 |
| Federal income tax | $5,790 |
| Maine income tax | $3,654 |
| QBI deduction used | $12,579 |
| Effective rate on all income | 25.2% |
With an S corp election and a $34,000 salary, about $3,425 less tax (check it).
Computed by Radif Partners from IRS and Maine agency documents read on October 15, 2026 · How we calculate
Maine's graduated income tax climbs quickly for a freelancer: the 7.15 % bracket starts at $64,850 of taxable income for a single filer in 2026, after a $15,700 standard deduction and a $5,300 personal exemption. On $75,000 of profit, the Maine tax is $3,027 and the total with federal income tax and self-employment tax is $18,522; on $120,000, Maine takes $5,953. New for 2026, a 2% surcharge applies above $1,000,000 single, raising the top rate to 9.15 %. Very few freelancers reach that level, but many pass the third bracket in an ordinary year. An LLC costs $175 to form and $85 a year for the annual report, $600 over five years, with no franchise tax and no minimum tax. Maine follows the S election without an entity tax, and the model shows $4,886 of saving at $120,000 of profit.
Maine at a glance, 2026
| LLC filing fee | $175 |
| Annual Report | $85 a year |
| Income tax | 5.8 % to 9.15 % |
| S corporation election | followed by the state |
| Tax on $75,000 of profit (single) | $18,522 in all, $3,027 to Maine |
Maine Revenue Services revised its 2026 rate schedule on May 20, 2026, after the legislature added a 2% surcharge on taxable income above $1,000,000 for single filers and $1,500,000 for joint filers. The surcharge sits on top of the 7.15 % bracket, so the top rate becomes 9.15 % (Maine 2026 rate schedule, revised). Very few freelancers reach it. What does touch most of them is the shape of the lower brackets: the third rate begins at $64,850 of taxable income, a level a full-time consultant passes easily.
The same profit in another state
Maine minus New Hampshire
$4,624
| Maine | $4,624 |
| New Hampshire | $0 |
Across the border
New Hampshire taxes neither wages nor business profit as personal income, which is why the comparison above is lopsided: the whole Maine bill becomes the gap. On $75,000 of profit a single filer in Maine pays $3,027; at $200,000 the state tax is $11,269. Residence decides which state taxes you, not where clients are. The New Hampshire page covers the business taxes that state applies instead.
Keeping a Maine LLC
A Certificate of Formation costs $175, and from the year after formation the annual report is due between January 1 and June 1 for $85, with a $50 penalty if it is late (31 M.R.S. 1680). That makes the yearly cost $85, with nothing else owed to the state for the entity itself. Ten years of fees come to $1,025. For a freelancer, the LLC does not change the Maine income tax at all: a single-member LLC is disregarded, its profit lands on the owner's federal Schedule C, and Maine starts from federal AGI. The fees buy the liability shield and a business name on file, nothing on the tax side. The single-member LLC guide explains the default treatment in detail.
Payroll costs if the LLC elects S status
Maine follows the federal S election and taxes the owner, not the company. Paying yourself a salary brings Maine unemployment contributions: the taxable wage base is $12,000 and a new employer pays 2.54 % in combined contributions for 2026 (Maine Department of Labor, 2026 rates), or $305 on a $50,000 salary. After that and $2,000 of payroll and filing costs, $120,000 of profit still saves $4,886 as an S corporation in our model. The reasonable salary page explains how the salary is set.
Quarterly payments are required when your Maine tax after withholding and credits is expected to reach $1,000 and your prior-year liability was also $1,000 or more (Form 1040ES-ME 2026). See the quarterly tax guide for the federal side.
Maine income tax brackets
| Taxable income, single | Rate | Taxable income, joint | Rate |
|---|---|---|---|
| $0 to $27,400 | 5.8 % | $0 to $54,850 | 5.8 % |
| $27,400 to $64,850 | 6.75 % | $54,850 to $129,750 | 6.75 % |
| $64,850 to $1,000,000 | 7.15 % | $129,750 to $1,500,000 | 7.15 % |
| over $1,000,000 | 9.15 % | over $1,500,000 | 9.15 % |