2025 Tax Year

Maine Side Hustle Tax Calculator

Calculate your Maine state tax (7.15%), federal tax, and self-employment tax on 1099 income.

ME7.15%

1.4 million residents

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2025 rates

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Last updated: January 2026 · Data from IRS Rev Proc 2024-40

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State

W-2 Income (from your day job)

Side Hustle Income *

Business Expenses (optional)

Maine side hustlers face a progressive income tax with rates from 5.8% to 7.15%. The Pine Tree State's top rate kicks in at relatively low income levels, so most freelancers with W-2 jobs will pay the top rate on their side hustle earnings. Maine has no local income taxes.

Maine Tax Guide

How Side Hustle Taxes Work in Maine

Maine uses a three-bracket progressive system:

**Maine state tax rates (2025):** - 5.8% on income up to $26,050 (single) - 6.75% on income $26,050-$61,600 - 7.15% on income over $61,600

**No local income taxes:** - Portland and all Maine cities have no income taxes - Only the state rate applies

For most side hustlers with W-2 income, your side hustle earnings will be taxed at 7.15%.

Example

What Maine Side Hustlers Owe

Let's say you're a single filer in Portland with a $52,000 W-2 job and $14,000 in side hustle income from freelance writing, with $2,000 in business expenses.

**Your estimated taxes on the side hustle:** - Net self-employment income: $12,000 - Federal SE tax (15.3% of 92.35%): ~$1,697 - Federal income tax on side income: ~$2,640 (22% bracket) - Maine state tax (7.15%): ~$858 - **Total additional tax: ~$5,195**

Your effective tax rate on the side hustle is about 43%.

Important Dates

Maine Tax Deadlines 2025

Maine estimated tax deadlines: - **Q1**: April 15, 2025 - **Q2**: June 16, 2025 - **Q3**: September 15, 2025 - **Q4**: January 15, 2026

Use Maine Form 1040ES-ME for state estimated tax payments.

Save Money

Common Deductions for Maine Freelancers

Maine freelancers should maximize deductions given the state's 7.15% top rate. **Home office expenses**: Claim dedicated business space using simplified ($5/sq ft) or actual expense method. **Business mileage**: 67 cents/mile for 2025; important for those serving clients in Portland, Bangor, or across the state. **Equipment and supplies**: Computers, cameras, tools, and office supplies are deductible. **Professional services**: Accounting, legal, and tax preparation fees are fully deductible. **Health insurance premiums**: Self-employed individuals can deduct 100% of health insurance costs. **Retirement contributions**: SEP-IRAs and Solo 401(k)s reduce federal AGI, which Maine uses as its starting point—saving you at federal rate plus up to 7.15%. **Marketing expenses**: Website costs, business cards, and promotional materials are deductible. Maine starts with federal AGI, so all Schedule C deductions reduce your ME taxes. Every dollar deducted saves you 5.8-7.15% in state taxes depending on your bracket.

Common Questions

Maine Side Hustle Tax FAQ

What is Maine's top tax rate?

Maine's top rate is 7.15% on income over $61,600 (single). Most side hustlers with W-2 jobs will pay this rate on their self-employment income.

Does Portland have a city income tax?

No, Portland and all Maine cities do not have local income taxes. You only pay the state tax rate.

How does Maine compare to New Hampshire?

New Hampshire has no income tax at all, while Maine's top rate is 7.15%. Living in NH while working in Maine can have tax benefits.

Do I need to register my side hustle in Maine?

Sole proprietors using their legal name don't need state registration. If using a trade name (DBA), register with your town clerk. LLCs must register with the Maine Secretary of State. Sellers may need a Sales Tax Registration.

When are Maine quarterly estimated taxes due?

Maine follows federal quarterly deadlines: April 15, June 16, September 15, and January 15. Use Form 1040ES-ME for payments.

Should I consider living in New Hampshire instead?

For tax purposes, NH is more favorable—0% vs Maine's 7.15%. However, NH has higher property taxes. Many freelancers who can work remotely choose to live in NH to save on income taxes.

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