State guide · Maine · 2026 rules
S corporation in Maine: what the election changes
Maine puts no tax on an ordinary S corporation. The election brings two state payroll costs on your salary: unemployment tax and the paid leave premium.
Choose a state and enter your profit and salary to see the comparison.
The state
Maine follows the federal S election; no separate state election was found. Maine’s corporate tax reaches an S corporation only on built-in gains and excess passive income, the amounts it owes federal tax on itself. An ordinary operating S corporation owes none.
An LLC that elects stays an LLC and keeps filing its annual report at $85. The election does not change the fee.
Payroll taxes on your salary
Unemployment insurance: 2.54% for a new employer in 2026, on the first $12,000 of wages. That combined rate is 2.23% for unemployment plus 0.14% and 0.17% for two state funds. Maine treats pay to corporate officers as wages. A sole proprietor is not liable for their own pay, so the election starts this tax.
Paid Family and Medical Leave: an employer with fewer than 15 employees pays 0.5% of wages, and may take all of it from the employee’s pay. Maine says an owner’s wages from their S corporation are subject to the premium. A self-employed owner is outside the program unless they elect in.
The optional pass-through entity tax
From 2026 an S corporation can elect Maine’s pass-through entity tax at 7.15%. You get a refundable credit of 90% of your share of the tax. The calculator leaves it out.
Worked examples
A single-member LLC owner, single filer, 22% federal bracket, default payroll and return costs. The figure is total tax and added costs as an S corporation compared with staying as you are.
| Profit / salary | Statewide |
|---|---|
| $80,000 / $45,000 | $459 lower |
| $120,000 / $60,000 | $2,785 lower |
| $200,000 / $90,000 | $7,415 lower |
Starting payroll in Maine
Register for state income tax withholding with Maine Revenue Services through the Maine Tax Portal, for unemployment insurance with the Maine Department of Labor through ReEmployME, and for paid leave premiums through the Maine Paid Leave Contributions Portal.
Other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Washington, DC
- West Virginia
- Wisconsin
- Wyoming
Sources
- 36 M.R.S. § 5102(8)
- 31 M.R.S. § 1680(6)
- 36 M.R.S. § 5199-C
- 36 M.R.S. § 5199-A(6)(B)
- 36 M.R.S. § 5199-B
- 36 M.R.S. § 5199-E(1)
- 36 M.R.S. § 5219-CCC
- Maine Revenue Services, Maine’s New Pass-Through Entity Tax (presentation)
- Maine DOL, Annual Rate Category/Employer Array, Rate Year 2026
- Maine DOL, 2026 Form ME UC-1 Instructions
- 26 M.R.S. § 1043(19)(A)
- Maine DOL, Employer Guide to Unemployment Insurance (ME. I-47, rev. 03/2021)
- Maine DOL, Unemployment Tax Registration booklet (Me. UI-Reg rev. 10/15/2021), Section 2
- 26 M.R.S. § 1167(1)(C) (UPAF rate formula)
- 26 M.R.S. § 850-F(5)(B)
- Maine DOL, PFML Employer FAQ (2026), Q19
- Maine DOL, What Employers Need to Know: Premiums and Counting Employees (2026)
Federal figures: IRS Publication 15 (2026), Schedule SE and Form 2553 instructions. Every figure was read on an official page and checked a second time. Checked October 24, 2026. How we check facts.