1040ME General Instructions — Maine Individual Income Tax

2025 Maine Income Tax
Important Update
2025 Income Tax
IMPORTANT UPDATE
Note: The instructions you are looking for begin on the next page.
Under current law, Maine conforms to the Internal Revenue Code (the "Code") as of December 31, 2024, with some exceptions specifically contained in Maine income tax law. Federal Public Law 119-21, the federal One Big Beautiful Bill Act ("OBBBA"), enacted on July 4, 2025, made several federal law changes, some of which would require changes to Maine income tax law in order for Maine to conform to the federal changes. These federal income tax law changes and their effect on Maine law are expected to be considered during the Second Regular Session of the 132nd Maine Legislature, which is scheduled to convene in January 2026.
When the Maine Legislature has not had the opportunity to conform or adjust Maine laws in response to federal income tax law changes, Maine Public Law 2025, chapter 336, permits the Governor to direct the State Tax Assessor ("Assessor") to temporarily adjust the administration of the current tax filing season, pending potential enactment of conformity legislation by the Maine Legislature.
Governor Janet T. Mills has directed the State Tax Assessor to adopt the federal tax treatment for qualified disaster losses; sales of qualified farmland property; IRC Section 179 expensing; business interest deduction; research and experimental expenditures (to allow small business amended returns only); and other miscellaneous changes. See the conformity documents at maine.gov/revenue/taxes/tax-policy-office and the October #2 Maine Tax Alert at maine.gov/revenue/publications/maine-tax-alerts for additional detail.
The 2025 Maine income tax returns and instructions have been developed pursuant to the Governor's directive but are contingent upon the enactment by the Legislature of legislation that addresses the Federal income tax law changes.
Taxpayers may choose to wait for enactment of legislation by the Maine Legislature that addresses the federal tax law changes by filing under extension pursuant to 36 M.R.S. §§ 5231 and 5295(4).
Returns submitted prior to any newly enacted Maine state legislation must be filed in a manner consistent with the guidance (forms, instructions, and other documentation) published by the Assessor in effect at the time of filing. If the Maine Legislature enacts legislation that subsequently addresses federal income tax law changes that conflict with the earlier published guidance, affected taxpayers will not be subject to interest or penalty for a resulting underpayment related to the variance. Additionally, any incorrect refund issued as a result of the earlier published guidance will not result in interest or penalty accruing prior to the date of enactment of that legislation. Affected taxpayers are required to file an amended return to address any conflicts.

For more information, see maine.gov/revenue
Free internet access is available at most local libraries in Maine. See your librarian for details about free internet access.
Get refund status: Visit revenue.maine.gov or call (207) 624-9784 - Weekdays 9:00 a.m. - 12:00 p.m.
To download or request forms or other information: Visit maine.gov/revenue/tax-return-forms or call (207) 624-7894

• Every day 24 Hours.

TTY (for persons who are hard of hearing): 7-1-1 - Weekdays 9:00 a.m.- 12:00 p.m.
Taxpayer Assistance: (207) 626-8475 - Weekdays 9:00 a.m. -12:00 p.m. Note: MRS does not provide tax return preparation assistance over the telephone.* 2025 MAINE

# Individual Income Tax Booklet

Form 1040ME

AUGUSTA, ME 04332-1060
Printed Under Appropriation 010 18F 0002.07
Federal income tax information and forms: Call the Internal Revenue Service at (800) 829-1040 or visit irs.gov.
Visit maine.gov/revenue to obtain the latest tax updates, view frequently asked questions (FAQs), or email tax-related questions.
Collection problems and payment plans: (207) 621- 4300 -
Weekdays 8:00 a.m. - 5:00 p.m. Call this number if you have a tax balance due that you would like to resolve.

# Form 1040ME due date: Wednesday, April 15, 2026

*Individuals qualified for free tax preparation assistance may schedule an appointment by contacting: the AARP Foundation
Tax-Aide Program at aarp.org/money/taxes/aarp_taxaide, or email MaineTaxAide@gmail.com, or call 888-AARPNOW (888-227-7669); the Ca$h Coalition of Maine at cashmaine.org/free-tax-prep; or call 2-1-1.

# Maine Electronic Filing Payment Services

IMPORTANT CHANGES for 2025
Pension income deduction. 36 M.R.S. §§ 5122(2)(M-2)(2)(a), 5122(2)(M-
3), and 5403(8) - 5403(10); L.D. 68; P.L. 2025, c. 271, Pt. C, § 2 and L.D.
210; P.L. 2025, c. 388, Pt. H, §§ 1, 2, 3, and 4. The law is amended to exclude from the pension income deduction distributions from an employee retirement plan received prior to age 55 that are not part of a series of substantially equal periodic payments made over the life of the primary recipient or the joint lives of the primary recipient and the primary recipient's designated beneficiary, whether or not the benefits are subject to the additional 10% federal tax on early distributions. Effective September 24, 2025.
For tax years beginning on or after January 1, 2025, the pension income deduction is subject to phaseout for taxpayers whose federal adjusted gross income is more than $125,000 for single individuals or married individuals filing separate returns; $187,500 for individuals filing as heads of households; and $250,000 for individuals filing married joint returns or as surviving spouses. For tax years beginning after 2025, the phaseout threshold amounts are adjusted for inflation.
Dependent exemption tax credit. 36 M.R.S. § 5219-SS(5); L.D. 210;
P.L. 2025, c. 388, Pt. Q, § 2 and §§ 5219-SS(4), 5403(8), 5403(9), and
5403(10); L.D. 210; P.L. 2025, c. 388, Pt. Q, §§ 1, 3, 4, and 5. For tax years beginning on or after January 1, 2025, the dependent exemption tax credit amount is doubled for each qualifying dependent of the taxpayer who has not attained six years of age before the end of the taxable year.
Additionally, the phaseout of the dependent exemption tax credit is changed to $20 for each $500 (previously $7.50 for each $1,000), or fraction thereof, by which a taxpayer's Maine adjusted gross income exceeds $100,000 for single individuals; $125,000 for individuals filing as heads of households; $150,000 for individuals filing married joint returns or as surviving spouses; or, $75,000 for married individuals filing a separate return. For tax years beginning after 2025, the income phaseout thresholds are adjusted for inflation.
Gain on the transfer of a majority interest in a business that provides housing to a cooperative affordable housing corporation or municipal housing authority. 36 M.R.S. §§ 5122(2)(AAA) and 5200-A(2)(JJ); L.D.
554; P.L. 2025, c. 455. For tax years beginning on or after January 1, 2025, to the extent included in federal adjusted gross income and otherwise subject to Maine income tax, up to $750,000 of gain recognized on the sale of a majority ownership interest in a qualified business is deductible in calculating Maine taxable income. The qualified business must provide housing and be transferred to a cooperative affordable housing corporation organized under 13 M.R.S., chapter 85, subchapter 1-A, or a municipal housing authority as defined in 30-A M.R.S. § 4702(10-A), or an affiliate of a municipal housing authority. A qualified business is any business that is not publicly traded and is registered with the Secretary of State or has its principal place of business in Maine, including a corporation, an S corporation, a limited liability company, a limited liability partnership, and a sole proprietorship. Review and reporting requirements apply.
Maine capital investment credit. 36 M.R.S. § 5219-NN(1-A); L.D. 258;
P.L. 2023, c. 412, Pt. J, § 12. For tax years beginning on or after January 1, 2025, the Maine capital investment credit is repealed except that unused credit amounts may be utilized to the fullest extent allowed by the carryforward provisions for the credit.
Dirigo Business Incentives Program. 36 M.R.S. § 5219-AAA; L.D. 258;
P.L. 2023, c. 412, Pt. J, § 13. For tax years beginning on or after January 1, 2025, the Dirigo program income tax credit may be claimed by qualified businesses that have been certified under the program by the Department of Economic and Community Development and that make eligible capital investments in eligible business property or that provide qualified training to its employees within the State. The credit is equal to: (1) 10% of the eligible capital investment for property placed in service in Maine during the taxable year outside of Cumberland, Sagadahoc, and York counties; plus
(2) 5% of eligible capital investment in property placed in service during the taxable year in Cumberland, Sagadahoc, and York counties; plus (3) $2,000 for each qualified employee that completes a qualified training program during the tax year. The credit is limited to $2 million and is refundable up to $500,000 for any one tax year. The credit and the refundability caps must be prorated among affiliated businesses or members of pass-through entities.
Carryforward provisions and reporting requirements apply.
Voluntary checkoff for the easy enrollment health insurance program.
22 M.R.S. §§ 5412 and 5413; 36 M.R.S. §§ 191(2)(RRR) and 5294; L.D.
609; P.L. 2025, c. 2, Pt. RR, § 1, 2, 3, and 4. The easy enrollment health insurance program and the individual income tax return voluntary health insurance check-off boxes are repealed. Effective June 20, 2025.
Underpayment of estimated tax penalty; fourth installment. 36 M.R.S. §
5228(9); L.D. 288; P.L. 2025, c. 113, Pt. C, § 12. For individual income tax, the penalty for underpayment of estimated tax may not be imposed with respect to the 4th required annual installment if the tax is paid in full by the last day of the first month of the following taxable year. Effective September 24, 2025.
Employer support for volunteer firefighters and volunteer municipal emergency medical services persons tax credit. 30-A M.R.S. § 3151(5) and 36 M.R.S. § 5217-F; L.D. 1802; P.L. 2023, c. 478. For tax years beginning on or after January 1, 2025, the employer support for volunteer firefighters and volunteer municipal emergency medical services persons credit is extended to include volunteer municipal firefighters that are part-time or on-call municipal firefighters who receive up to 20% of the compensation of a full-time municipal firefighter and who may receive injury and death benefits.
Credit for rehabilitation of historic properties after 2007. 36 M.R.S.
§§ 5219-BB(4) and 5219-BB(4-A); L.D. 146; P.L. 2025, c. 444. and 36
M.R.S. §§ 5219-BB(1)(E) and 5219-BB(10); L.D. 1755; P.L. 2025, c. 499.
For tax years beginning on or after January 1, 2025, the maximum credit amount is increased from $5,000,000 in the first year a tax credit may be claimed to $10,000,000 over the first and second years a tax credit may be claimed. No more than $10,000,000 may be claimed over the first two years of the project. The annual credit limit for any portion of a certified historic rehabilitation placed in service after the first two years of the project remains unchanged at $5,000,000 per year.
The tax credit is increased from 25% to 35% of the qualified rehabilitation expenditures (QREs) for certified projects located in rural areas of the State as long as not less than 33% of the aggregate square feet of the certified historic structure constitutes apartments, dwellings, or other living accommodations. The credit is increased to 45% of the QREs if the certified historic structure is also a certified affordable housing project.

Tax credit for major food processing and manufacturing facility expansion. 36 M.R.S. § 5219-VV; L.D. 1951; P.L. 2025, c. 489. For tax years beginning on or after January 1, 2025, the income tax credit for major food processing and manufacturing facility expansion is changed to 1) repeal the requirement that the qualified applicant's headquarters be located in Maine currently and for the five years prior to the application for approval;

2) extend the time by which the applicant must employ, or will employ, at least 40 full-time employees based in the State from "upon startup" to within 12 months of start-up of the facility;

3) extend the time by which a qualified investment must be made to December 31, 2027;

4) increase the aggregate value of certificates of approval that may be issued by the DECD from $100M to $200M and increase the cap on any individual certificate of approval from $85M to $100M;

5) remove the credit limitation disallowing the credit for any tax year following two consecutive tax years during which the certified applicant's ordinary business income was not between $5.5M and $12M;

6) relax the requirement that the annual income of at least 75% of the taxpayer's employees must exceed the most recent annual per capita personal income in the county in which the facility is located to apply only to 75% of those employees who have been employed for at least 12 months; and 7) add additional reporting requirements for certified applicants.

Qualified professional baseball facilities income tax credit. 36 M.R.S.
§§ 191(2)(UUU) and 5219-BBB; L.D. 2258; P.L. 2023, c. 667. A qualified applicant that has made a qualified investment of at least $1,000,000 between October 1, 2023 and November 30, 2026 in a qualified professional baseball facility in Maine and that has received a certificate of approval and a certificate of completion from DECD may be eligible for a refundable credit equal to 1.33% of the qualified investment, up to $133,000 per tax year and $1,995,000 in cumulative total. The credit may be claimed over a 15-year period beginning with the tax year during which the certificate of completion is issued, or the tax year beginning in 2025, whichever is later. The credit is subject to reporting requirements and recapture provisions. Effective August 9, 2024.

# MAINE REVENUE SERVICES MISSION STATEMENT

MRS' mission is to fairly and efficiently administer the State's tax laws with integrity and professionalism.
See the complete 2025 Summary of Tax Law Changes available at maine.gov/revenue/publications/rules.

# GENERAL INSTRUCTIONS

Who must file? A Maine income tax return must be filed by April 15, 2026, if you are a resident of Maine who is required to file a federal income tax return or if you are not required to file a federal return, but do have income subject to Maine income tax resulting in a Maine income tax liability. Even if you are required to file a federal income tax return, you do not have to file a Maine income tax return if you have no income addition modifications (Form 1040ME, Schedule 1A, line 11) and your income subject to Maine income tax is less than the sum of your Maine standard deduction amount plus your personal exemption amount.
However, you must file a return to claim any refund due to you. Generally, if you are a nonresident or a safe harbor resident who has income from Maine sources resulting in a Maine income tax liability, you must file a Maine income tax return. See below for more information on residency, including safe harbors. Nonresidents - see Schedule NR instructions for minimum taxability thresholds. Also see, 36 M.R.S. § 5142(8-B) and MRS Rule 806.
For answers to frequently asked questions (FAQs), visit maine. gov/revenue/faq.

# What is my Residency Status?

To determine your residency status for 2025, read the following.
Domicile: Domicile is the place an individual establishes as their permanent home and includes the place to which they intend to return after any period of absence. A number of factors associated with residency are relevant in the evaluation of a claimed domicile. A domicile, once established, continues until a new, fixed and permanent home is acquired. To change domicile, a taxpayer must exhibit actions consistent with a change. No change of domicile results from moving to a new location if the intent is to remain only for a limited time, even if it is for a relatively long duration.
• Full-year Resident: 1) Maine was my domicile for the entire year of 2025; or 2) I maintained a permanent place of abode in Maine for the entire year and spent a total of more than 183 days in Maine.
• Safe Harbor Resident (treated as a nonresident):
General Safe Harbor - Maine was my domicile in 2025, I did not maintain a permanent place of abode in Maine, I maintained a permanent place of abode outside Maine and I spent no more than 30 days of 2025 in Maine. An individual qualifying under the safe harbor rule will be treated as a nonresident for Maine individual income tax purposes.
Foreign Safe Harbor - I spent at least 450 days in a foreign country during any 548-day period occurring partially or fully in the tax year.
The taxpayer must also meet other eligibility criteria. If you qualify for the Foreign Safe Harbor, you will be considered a safe harbor resident and treated as a nonresident for the 548-day period even though you were domiciled in Maine.

• Part-year Resident: I was domiciled in Maine for part of the year and was not a full-year resident as defined in 2) above.
• Nonresident: I was not a resident or part-year resident in 2025, but I do have Maine-source income. Follow the federal filing requirements for filing status, federal adjusted gross income, and standard or itemized deductions.

NOTE: Safe harbor residents, part-year residents, and nonresidents, file Form 1040ME and Schedule NR or NRH.
Schedules NR and NRH are available at maine.gov/revenue/tax-returnforms.
For additional information on determining Maine residency or if you are in the military, see the Maine Revenue Services Guidance Documents titled Determining Residency Status and Residency Safe Harbors for Residents Spending Time Outside Maine available at maine.gov/ revenue/tax-return-forms (select Income Tax Guidance Documents).

# SPECIFIC INSTRUCTIONS - FORM 1040ME

Note: References to federal form line numbers are subject to change.
Form 1040ME is designed to comply with optical scanning requirements. Fill in the white boxes carefully in black or blue ink.
Letters and numbers must be entered legibly within the outline area. Letters must be in upper case only. Begin writing name(s), address, etc., from the left; dollar amounts start from the right.
Use whole dollar amounts. Round down to the next lower dollar any amount less than 50 cents. Round up to the next higher dollar any amount 50 cents or more. Do not enter dollar signs, commas, or decimals. Due to scanning requirements, only original forms and schedules may be submitted.
Taxpayer Information. Print or type your name(s) and current mailing address in the spaces provided. Social security number(s) must be entered in the spaces provided. Do not use dashes.
Check the box above your social security number if this is an amended return. You must file an amended Maine income tax return if (1) you have filed an amended federal income tax return that affects your Maine income tax liability; (2) the Internal Revenue Service has made a change or correction to your federal income tax return that affects your Maine income tax liability; or (3) an error has been made in the filing of your original Maine income tax return. For more information, see the frequently asked questions at maine.gov/revenue/faq.

# Line A. Maine Property Tax Fairness Credit/Maine Sales Tax

Fairness Credit for Maine residents and part-year residents only.
See Schedule PTFC/STFC. Check the box on line A only if (1) you are claiming the Property Tax Fairness Credit on line 25d and/or the Sales Tax Fairness Credit on line 25e; (2) you have no Maine income modifications on Form 1040ME, Schedule 1A or Schedule 1S; AND (3) you do not file a federal income tax return. Otherwise, leave the box blank. See the

Schedule PTFC/STFC instructions for Step 1. Note: Schedule PTFC/ STFC is available at maine.gov/revenue/tax-return-forms.

# Line 1. FOR MAINE RESIDENTS ONLY. The Maine Clean Election

Fund finances the election campaign of certified Maine Clean Election Act candidates. Checking this box does not increase your tax or reduce your refund but reduces General Fund revenue by the same amount.
Line 2. Check if at least two-thirds of your gross income for 2025 was from commercial farming or fishing as defined by the Internal Revenue
Code. Include your spouse's income in your calculation if you are filing a joint return.
Lines 3-7. Use the filing status from your federal income tax return. If you filed a married filing jointly federal return and one spouse is a part-year resident, nonresident or safe harbor resident, see the Guidance Documents for Schedule NR and Schedule NRH available at maine.gov/revenue/tax-return-forms (select Income Tax Guidance Documents). If you are filing married filing separately, be sure to include your spouse's name and social security number.
Lines 8-11a. See the General Instructions above to determine your residency status. Nonresident aliens: check box 11 if you were a nonresident of Maine or box 11a if you were a resident of Maine during all or part of the tax year. If you check box 8a, 9, 10, 11, or 11a, enclose a copy of your federal tax return.

Line 15a. Income Addition Modifications. Complete Maine Schedule 1A to calculate your entry for this line.

# Line 15b. Income Subtraction Modifications. Complete Maine

Schedule 1S to calculate your entry for this line.
Line 17. Deduction. CAUTION: If the amount on Form 1040ME, line 16 is more than $100,000 if single or married filing separately; $150,000 if head of household; or $200,050 if married filing jointly or qualifying surviving spouse, you must complete the Worksheet for Standard/ Itemized Deductions below to calculate your deduction amount for line 17.
*The additional deduction amounts for your spouse (boxes 12c and 12d) apply only if you can claim an exemption for your spouse.
Otherwise, if your income does not exceed the amount for your filing status and you use the standard deduction on your federal return, you must use the Maine standard deduction for your filing status on your

# Head of Household 1 $24,500

2 $26,500
Worksheet for Standard / Itemized Deductions (for Form 1040ME, line 17)
Use this worksheet to calculate your standard deduction or itemized deduction if your Maine adjusted gross income for 2025 is greater than $100,000 if single or married filing separately; $150,000 if head of household; or $200,050 if married filing jointly or qualifying surviving spouse.
Enter your 2025 Maine adjusted gross income (Form 1040ME, line 16) … 1.

1. _ __

Enter $100,000 if single or married filing separately; $150,000 if head of household; or … 2.
2.
$200,050 if married filing jointly or qualifying surviving spouse.

Subtract line 2 from line 1. If zero or less, STOP here. Your deduction is not limited … 3.

1. _ __

Enter $75,000 if single or married filing separately; $112,500 if head of household; or … 4.
4.
$150,000 if married filing jointly or qualifying surviving spouse.

Divide line 3 by line 4. If one or more, enter 1.0000 … 5.

1. _ . _ _ _ _

Enter your 2025 standard deduction from the chart above or your 2025 Maine itemized deductions from 6.
Form 1040ME, Schedule 2, line 7, whichever applies … 6. _ __ Multiply line 6 by line 5 … 7.
7.
8.

2025 Maine itemized deductions or standard deduction. Subtract line 7 from line 6. Enter this amount on Form 1040ME, line 17 … 8.
Line 18. Exemption. Multiply the amount shown on line 13 by $5,150.
CAUTION: If the amount on Form 1040ME, line 16 is more than $333,450 if filing single; $366,750 if head of household; $400,100 if married filing jointly or qualifying surviving spouse; or $200,050 if married filing _ __ separately, you must complete the Worksheet for Phaseout of Personal Exemption Deduction Amount below to calculate your exemption amount for line 18.

Worksheet for Phaseout of Personal Exemption Deduction Amount (for Form 1040ME, line 18)
Use this worksheet to calculate your personal exemption amount if your Maine adjusted gross income for 2025 is greater than $333,450 if single;
$366,750 if head of household; $400,100 if married filing jointly or qualifying surviving spouse; or $200,050 if married filing separately.
Enter your 2025 Maine adjusted gross income (Form 1040ME, line 16) … 1.

1. _ __

Enter $333,450 if single; $366,750 if head of household; $400,100 if married filing jointly or qualifying

1. surviving spouse, or $200,050 if married filing separately … 2. _ __ Subtract line 2 from line 1. If zero or less, STOP here. Your personal exemption deduction amount is not limited... 3.
2. _ __

Enter $125,000 if single or head of household or married filing jointly or qualifying surviving spouse; $62,500 if

1. married filing separately … 4. _ __

Divide line 3 by line 4. If one or more, enter 1.0000 … 5.

1. _ . _ _ _ _

Enter the 2025 personal exemption deduction amount (multiply the amount on Form 1040ME, line 13 by 6.
$5,150) … 6. _ __
Multiply line 6 by line 5 … 7.
7.
8.

2025 Maine personal exemption deduction amount. Subtract line 7 from line 6. Enter this amount on Form 1040ME, line 18 … 8.
Line 20a. Enter the amount of credits previously used to reduce Maine income tax that are now subject to recapture. Enclose supporting documentation or applicable worksheet(s) to show the calculation of the amount entered on this line.
Line 21. Note: Schedules NR and NRH are available at maine.gov/ revenue/tax-return-forms.
Line 24. Subtract line 23 from line 22. Nonresidents and Safe Harbor Residents only - Note: Unused business credits claimed on Schedule A, lines 15 through 20 may be eligible to be carried over to future tax years.
See the instructions for Maine Schedule A.
Line 25a. Enter the total amount of Maine income tax withheld. Enclose
(do not staple or tape) supporting W-2, 1099, and 1099ME forms.
Unless the 1099 form is required as supporting documentation for another schedule or worksheet, send 1099 forms only if there is State of Maine income tax withheld shown on them.
Line 25b. Enter the total amount of Maine estimated tax paid for tax year 2025. Also include on this line extension payments and amounts withheld on the sale of real estate in Maine. Enclose a copy of Form REW-1-1040 or, for electronic payments, a copy of the Summary of your Real Estate Withholding Payment to support your entry. If you are filing an amended return, include amounts paid with your original, or previously adjusted return, including use tax, voluntary contributions, and estimated tax penalty amounts.
Line 25d. For Maine residents and part-year residents only. Enter the amount from Schedule PTFC/STFC, line 16.
Line 25e. For Maine residents and part-year residents only. Enter the amount from Schedule PTFC/STFC, line 17 or line 17a, whichever applies.
Line 26. If you are filing an amended return, include any carryforward or refund amount allowed on the original, or previously adjusted return.
Line 29. If the amount on line 27 is a negative amount, treat it as a positive amount and add it to the amount on line 24.
Note: For purposes of calculating Form 1040ME, lines 28 and 29, any negative amount entered on Form 1040ME, line 24 should be treated as zero.
Line 30. If you purchased items for use in Maine from retailers who did not collect the Maine sales tax (such as businesses in other states or countries and unregistered mail order and internet sellers), you may owe
Maine use tax on those items. The tax rate for purchases in 2025 is 5.5%.
If you paid another state's sales or use tax on any purchase, that amount may be credited against the Maine use tax due on that purchase. If you do not know the exact amount of Maine use tax that you owe, multiply your Maine adjusted gross income from line 16 by .04% (.0004).
Note: For items that cost $1,000 or more, you must add the tax on those items to the percentage amount. Use tax on items that cost more than $5,000 must be reported on an individual use tax return by the 15th day of the month following its purchase. For additional information, visit maine. gov/revenue/taxes/sales-use-service-provider-tax or email sales.tax@ maine.gov.

Line 30a. If you collected $2,000 or less in sales tax on casual rentals of living quarters, you may report the tax on this line. Enter the amount of tax collected on rentals made in 2025 not already reported on a sales tax return. The tax rate on casual rentals occurring during 2025 is 9%.
Note: To report sales tax greater than $2,000, you must file a sales/use tax return at revenue.maine.gov.
Line 32. Underpayment Penalty. If line 24 less the sum of lines 25a, 25c, 25d, 25e, and REW amounts included in line 25b is $1,000 or more, use Form 2210ME to see if you owe an underpayment of estimated tax penalty. Form 2210ME is available at maine.gov/revenue/tax-return-forms.
Line 34b. Refunds of $1.00 or more will be issued to you.
Lines 34c-34e. To comply with banking rules, you must check the box to the left of line 34d if your refund is going to an account outside the United States. If you check the box, a paper check will be mailed.
The account to receive the direct deposit must be in your name. If you are married, the account can be in either spouse's name or both spouses' names. Note: Some banks will not allow a joint refund to be deposited into an individual account.
Line 34c. Routing Number ("RTN") must be 9 digits.
Line 34d. Bank Account Number can be up to 17 characters (both numbers and letters). Omit hyphens, spaces, and special symbols. Enter the number from left to right.
Line 35. Total Amount Due. Do not send cash. If you owe less than $1.00, do not pay it. Remit your payment of $1.00 or more using the Maine Tax Portal ("MTP") at revenue.maine.gov or enclose (do not staple or tape) a check or money order payable to Treasurer, State of Maine with your return. Include your complete name, address and telephone number on your check or money order.
Third Party Designee. Complete this section if you would like to allow MRS to call or accept information from another person to discuss your 2025 Maine individual income tax return. Choose any 5-digit personal identification number which will be used to ensure MRS employees speak with only the individual you have designated. This authorization will automatically end on April 15, 2027.
Payment Plan. Check the box below your signature(s) if you are requesting a payment plan. Your first payment should be submitted with your return and you should continue to make payments until Maine Revenue Services contacts you. Payment plans may also be requested by logging into your account on the Maine Tax Portal at revenue.maine. gov. For more information, email compliance.tax@maine.gov.
Injured Spouse. Check the box below your signature(s) if you are an injured spouse for a Maine Revenue Services income tax debt only.
(See federal Form 8379 and related instructions.) If you have a married joint refund which may be set off to a State agency including DHHS, you must submit your claim form directly to that agency. For more information, email compliance.tax@maine.gov.

SCHEDULE 1A - Income Addition Modifications - See page 19 For more information on Maine income modifications, visit maine.gov/revenue/tax-return-forms.
Also include the taxpayer's distributive share of addition modification items from partnerships, S corporations, and other pass-through entities.
Line 1. Enter the income from municipal and state bonds, other than Maine, that is not included in your federal adjusted gross income (i.e., enter bond interest from City of New York but not Portland, Maine). 36 M.R.S. § 5122(1)(A).
Line 2. Net operating loss recovery adjustment. Enter on this line any amount of federal net operating loss carryforward that has been previously used to offset Maine addition modifications. For more information, go to maine.gov/revenue/tax-return-forms (select Income Tax Guidance Documents). 36 M.R.S. §§ 5122(1)(H) and 5122(1)(M).
Line 3. Enter 2025 Maine Public Employees Retirement System contributions. See your Maine state or municipal W-2 form. 36 M.R.S.
§ 5122(1)(G).
Line 4. Bonus depreciation add-back. Line 4 relates to Maine's decoupling from the federal special depreciation deduction through IRC § 168(k), commonly known as bonus depreciation. To calculate the amount to enter on this line, complete a pro forma federal Form 4562 as if no bonus depreciation was claimed on the property placed in service in tax year

1. The total addition modification is the difference between the federal depreciation claimed on Form 4562 and the depreciation calculated on the pro forma Form 4562. Enclose copies of the original and pro forma federal Forms 4562, along with the add-back calculation, with the completed Form 1040ME. Amounts entered on this line are eligible for the recapture subtraction modification on Schedule 1S in future years (for example, see Schedule 1S, line 10). 36 M.R.S. § 5122(1)(KK).

For more information, go to maine.gov/revenue/tax-return-forms (select Income Tax Guidance Documents). Also, refer to the instructions for Schedule 1S, line 10 below.
Line 5. Enter your share of a fiduciary adjustment (addition modifications) relating to income from an estate or trust (36 M.R.S. § 5122(3)). Attach a copy of your federal Schedule K-1.
Line 6. Election to recognize total gain from the sale of Maine real or tangible property - nonresidents only. Nonresident individuals may elect to recognize the entire gain from an installment sale during the taxable year of real or tangible property located in Maine. The election may only be made on a timely filed original return and, once made, is irrevocable.
Enter on this line the total gain from the sale of the Maine property that would have been included in your federal adjusted gross income if you had not reported the gain on the installment sale basis, less the amount of the gain from the sale already included in your federal adjusted gross income reported on Form 1040ME, line 14. An entry on this line constitutes an election under this paragraph. 36 M.R.S. § 5147.
Line 7. Adjustment for loss, deductions, and other expenses of a pass-through entity financial institution subject to Maine franchise tax. Under Maine law, financial institutions are subject to the Maine franchise tax, regardless of how the institution is organized. This includes a financial institution organized as a pass-through entity, such as a partnership or limited liability company. Maine law provides that the income from an ownership share in a pass-through entity financial institution is not taxable income on the owner's Maine income tax return. In like manner, any loss, deduction, or expense of a pass-through entity financial institution reflected in an owner's federal income is not permitted in calculating the Maine taxable income of the owner. 36 M.R.S. § 5122(1)(K).
Line 8. Wellness programs tax credit adjustment. Maine taxpayers who claim the Maine credit for wellness programs under 36 M.R.S. § 5219-FF and deducted related expenses on their federal tax return must increase Maine taxable income by the amount federal income was reduced. 36 M.R.S. § 5122(1)(EE).
Line 9. Enrolled tribal members in Maine. If the amount on Schedule ETM column C, line 5 is negative, enter that amount on Schedule 1A, line 9 as a positive number. Enclose Schedule ETM available at maine.gov/ revenue/tax-return-forms. Also see Form 1040ME, Schedule 1S, line 25.
Line 10. Other - OBBBA expensing of domestic research and experimental (R & E) expenditures add-back: For federal tax purposes, under the One Big Beautiful Bill Act (OBBBA), for tax years beginning after 2024, taxpayers may elect to deduct domestic R & E expenditures incurred during the tax year in full (IRC, Section 174A(a)), or to amortize the expenditures over a period of at least 60 months (IRC, Section 174A(c)(1)). The OBBBA also allows certain taxpayers to accelerate unamortized R & E expenditures incurred during 2022, 2023, and 2024 to tax years 2025 and 2026 (OBBBA, Section 70302(f)(2)). For Maine tax purposes, an adjustment must be made to reverse the effects of these federal deductions. The domestic R & E expenditures must continue to be amortized over a five-year period as calculated before enactment of the OBBBA. To calculate the amount to enter on this line:

1. Complete the applicable pro forma federal tax form(s) to compute the federal deduction claimed for the tax year with respect to: a) fully expensed domestic R & E expenditures incurred during the tax year as allowed under IRC, Section 174A(a); plus b) domestic R & E expenditures amortized over a period of at least 60 months as allowed under IRC, Section 174A(c)(1); plus c) the accelerated amortization deduction for domestic research expenditures (OBBBA, Section 70302(f)(2)).
2. Complete the applicable pro forma federal tax forms(s) to compute the allowable federal deduction for domestic R & E expenditures with respect to IRC, Section 174, and amendments to that Section as of December 31, 2024 (effective immediately before enactment of the OBBBA).
3. Subtract the result of Step 2 from Step 1. If negative, enter zero on Line 10 and enter the absolute value of the calculation on Line 9 of the

# Form 1040ME, Schedule 1S, Other Income Subtraction Modifications

Worksheet (for Line 26). Provide a statement listing each component of the calculation.
Note: When calculating amortization under pre-OBBBA law in Step 2, do not include expenditures incurred during 2022, 2023, or 2024 for which an amended federal return was filed to claim an expense deduction for those tax years pursuant to enactment of the OBBBA, Section 70302(f)(1).
Amended Maine income tax returns must be filed for tax years 2022, 2023, and 2024 to deduct unamortized domestic R & E expenditures incurred during these tax years.
SCHEDULE 1S - Income Subtraction Modifications - See pages 21 and 22 For more information on Maine income modifications, visit maine.gov/revenue/tax-return-forms.
Also include the taxpayer's distributive share of subtraction modification items from partnerships, S corporations, and other pass-through entities.
If you are a resident of Maine and have income taxed by another state, you may be eligible for the Credit for Income Tax Paid to Other Jurisdictions.
See Form 1040ME, Schedule A, line 14.
Line 1. If included in federal adjusted gross income, enter income from direct obligations of the U.S. Government, such as Series EE and Series HH Savings bonds and U.S. Treasury bills and notes. 36 M.R.S.
§ 5122(2)(A).
Line 2. Enter the amount of any state or local income tax refund included on federal Form 1040 or 1040-SR, Schedule 1, line 1. 36 M.R.S.
§ 5122(2)(F).
Line 3. If included in federal adjusted gross income, enter the taxable amount of social security benefits issued by the U.S. Government and railroad retirement benefits (tier 1 and tier 2) and unemployment and sick benefits issued by the U.S. Railroad Retirement Board. 36 M.R.S.
§ 5122(2)(C).

Line 4. Enter the pension income deduction from the Pension Income Deduction Worksheet, line P10. Include copies of your 1099 forms to verify the subtraction. Enclose worksheet. 36 M.R.S. § 5122(2)(M-2).
The benefits received under a United States military retirement plan, including survivor benefits, are fully exempt from Maine income tax.
Only military retirement pay received as a result of service in the United States Army, Navy, Air Force, Marines, Coast Guard, or Space Force qualify for the military retirement deduction on line P9.
In addition, you and your spouse (if married) may each deduct up to $48,216 of other eligible pension income* that is included in your federal adjusted gross income. The $48,216 cap must be reduced by any social security and railroad retirement benefits received, whether taxable or not.
Deductible pension income, other than military retirement pay, includes state and federal pension benefits and retirement benefits received from plans established and maintained by an employer for the benefit of its employees under Internal Revenue Code (IRC) sections 401(a) (qualified pension plans, including qualified 401 SIMPLE plans), 401(k) (qualified cash or deferred arrangements), and 403 (employee annuities). Deductible pension income also includes benefits received from an individual retirement account under IRC section 408, Roth IRA accounts under IRC section 408A, SIMPLE individual retirement accounts under IRC section 408(k), simplified employee pension plans under IRC section 408(p), benefits received under IRC section 457(b) (state and local government/tax exempt organizations/eligible deferred compensation plans), except that pickup contributions received from the Maine Public Employees Retirement System (MainePERS) allowed to be deducted on Form 1040ME, Schedule 1S, line 7 may not be included in the deductible pension amount.
Note that a conversion of benefits from one account to another does not qualify for the pension income deduction. For example, a deduction may not be taken when a taxpayer converts a traditional IRA to a Roth IRA. The taxpayer, in this case, does not receive a retirement or IRA benefit at the time of conversion.
Pension benefits that do not qualify are those received from an ineligible deferred compensation plan under IRC section 457(f), refunds of excess contributions, lump-sum distributions included on federal Form 4972 and distributions received prior to age 55 that are not part of a series of equal periodic payments made over the life of the recipient and the recipient's designated beneficiary, whether subject to the additional 10% federal tax on early distributions or not. See federal Form 5329, Part 1, or federal Form 1040 or 1040-SR, Schedule 2, line 8. Also, disability benefits reported as wages on your federal income tax return do not qualify.
*Eligible pension income does not include benefits earned by another person, except in the case of a surviving spouse. Only the individual who earned the benefit from prior employment may claim the pension income for the deduction. However, a widowed spouse receiving survivor's benefits under an eligible pension plan may claim that amount for purposes of this deduction, but the total pension deduction for the surviving spouse may not exceed $48,216.
Line 5. Non-Maine active duty military pay received by a Maine resident and military compensation received by a nonresident of
Maine. 36 M.R.S. § 5122(2)(LL).
Maine residents - If included in federal adjusted gross income and not otherwise removed from Maine income, enter the amount of military pay earned during the portion of the taxable year that you were a Maine resident for service performed outside of Maine in compliance with written military orders.
Military pay is compensation for: (1) active duty service in the active components of the United States Army, Navy, Air Force, Marines, Coast Guard, or Space Force if your permanent duty station during the performance of such service was located outside of Maine; OR (2) active duty service in the active or reserve components of the United States Army, Navy, Air Force, Marines, Coast Guard, Space Force, or in the Maine National Guard if such service was in support of a federal operational mission or a declared state or federal disaster response when the orders were either at federal direction or at the direction of the Governor of Maine.
Note: A "federal operational mission" is limited to activity in support of overseas deployment and excludes standard duty activity, such as training and administrative activities.
Nonresidents - If included in federal adjusted gross income and not otherwise removed from Maine income, enter the amount of military compensation received during the portion of the taxable year that you were a nonresident of Maine. 36 M.R.S. § 5142(7).
Line 6. Military annuity payments made to a survivor of a deceased member of the military as a result of service in the active or reserve components of the United States Army, Navy, Air Force, Marines, Coast Guard, or Space Force under a survivor benefit plan or reserve component survivor benefit plan in accordance with 10 United States Code, Chapter 73 are exempt from Maine individual income tax. The deduction must exclude any amount included in the Maine pension income deduction on Form 1040ME, Schedule 1S, line 4. 36 M.R.S. § 5122(2)(HH).
Line 7. Use this line only if you retired after 1988 and are receiving retirement benefits from the Maine Public Employees Retirement System (MainePERS). Subtract the amount in box 16 from the amount in box 2a on Form 1099-R issued by MainePERS. Also enter on this line MainePERS rollover amounts previously taxed by the state, whether or not included in federal adjusted gross income. Rollover amounts may be subtracted fully or in part during the tax year of the rollover. Any amount not subtracted in the tax year of the rollover may be subtracted within the two years immediately following the year of the rollover. However, the total amount subtracted over the three-year period may not exceed the pick-up contributions previously taxed by Maine. 36 M.R.S. § 5122(2)(E).
Line 8. If your federal adjusted gross income is not more than $100,000 if single or married filing separately or $200,000 if married filing jointly, qualifying surviving spouse, or head of household, enter up to $1,000, per beneficiary, of contributions made to a Maine or non-Maine qualified tuition program ("529 college savings plan"). 36 M.R.S. § 5122(2)(YY).
Line 9. Enter your share of a fiduciary adjustment (subtraction modifications) relating to income from an estate or trust (36 M.R.S. § 5122(3)). Enclose a copy of the federal Schedule K-1.
Line 10. Bonus Depreciation and Section 179 Recapture amounts required to be added to income under 36 M.R.S. § 5122(1) may be recaptured over the life of the applicable asset in accordance with 36 M.R.S.
§ 5122(2), paragraphs Q, AA, II, MM, NN, OO, and RR. Individual owners of certain electing S corporations may be allowed bonus depreciation recapture over the life of the applicable asset pursuant to 36 M.R.S. § 5122(2)(X). For more information and examples, visit maine.gov/revenue/ tax-return-forms (select Income Tax Guidance Documents).
Line 11. Eligible registered caregivers, registered dispensaries, and manufacturing facilities as defined by 22 M.R.S. § 2422 may claim a deduction for expenses related to carrying on a medical cannabis trade or business, in an amount equal to the deduction that would otherwise be allowable for Maine purposes to the extent the deduction was disallowed under Internal Revenue Code, Section 280E. Also enter your registration number or business sales tax number. Enclose a copy of a pro forma federal Schedule C or pro forma federal Form 1065 or 1120-S, including Schedules K and K-1, showing the calculation of the expenses included on this line. 36 M.R.S. § 5122(2)(PP).
Line 12. Eligible adult use cannabis establishments and testing facilities as defined by 28-B M.R.S. § 102 may claim a deduction for expenses related to carrying on an adult use cannabis trade or business, in an amount equal to the deduction that would otherwise be allowable for Maine purposes to the extent the deduction was disallowed under Internal Revenue Code, Section 280E. Also enter your registration number or business sales tax number. Enclose a copy of a pro forma federal Schedule C or pro forma federal Form 1065 or 1120-S, including Schedules K and K-1, showing the calculation of the expenses included on this line. 36 M.R.S. § 5122(2)(PP).
Line 13. Net operating loss (NOL) recapture. For Maine tax purposes, taxpayers may, in years subsequent to the year of the loss, deduct an amount equal to the net operating loss carried back for federal tax purposes that was required to be added back to Maine income under 36 M.R.S. §§ 5122(1)(H) and 5122(1)(M), except that this NOL deduction was suspended for tax years beginning in 2009, 2010 and 2011. The carryover period for suspended NOL recapture subtraction modifications is equal to the allowable federal NOL carryforward period plus the number of years the subtraction modification was suspended.
Also include on this line the amount of NOL carryforward resulting from excess business losses not allowed to be claimed for Maine tax purposes for a tax year beginning in 2018, 2019, or 2020 to the extent the amount does not reduce Maine taxable income to less than zero, has not been previously used to offset Maine taxable income, and is not included in the calculation of any NOL carryback or carryforward for federal tax purposes.
Individual shareholders of an electing S corporation may also recapture an NOL addition modification claimed by the entity in a year the corporation was taxed as a C corporation. For more information on Maine's treatment of NOLs, go to maine.gov/revenue/tax-return-forms (select Income Tax Guidance Documents). 36 M.R.S. §§ 5122(2)(H), 5122(2)(P), 5122(2)(V), 5122(2)(W), 5122(2)(CC), and 5122(2)(UU).
Line 14. FAME nonprofit student loan repayment program. An individual taxpayer may claim, to the extent included in federal adjusted gross income, the income subtraction modification for student loan payments made directly to a lender on behalf of the taxpayer by a student loan repayment program funded by a nonprofit foundation and administered by the Finance Authority of Maine for residents of the State employed by a business located in the state. 36 M.R.S. § 5122(2)(XX).
Line 15. Qualified health care student loan payments. A qualified health care employee (generally, an individual who is licensed as a registered nurse, practical nurse, osteopathic physician, or to practice medicine or surgery and is employed by a hospital in Maine) may claim, to the extent included in the employee's federal adjusted gross income, the income subtraction modification for student loan payments made by an employer directly to the lender. 36 M.R.S. § 5122(2)(SS).
Line 16. Municipal property tax benefits for senior citizens. A municipality, by ordinance, may adopt a program that permits claimants who are at least 60 years of age to earn benefits up to a maximum $1,465 by volunteering to provide services to the municipality. The amount of the benefits received during the tax year are exempt from Maine individual income tax. Enter on this line the amount of volunteer benefits you received, up to the maximum allowed, to the extent included in federal adjusted gross income. 36 M.R.S. §§ 5122(2)(EE) and 6232(1-A).
Line 17. Family Development Account proceeds. Individuals whose family income is below 200% of the poverty level may open a family development account in connection with an approved community development organization. Account balances and withdrawals are exempt from Maine individual income tax to the extent included in federal adjusted gross income. For more information, contact the University of Maine. 20-A M.R.S. § 10983(4).
Line 18. Interest from Maine Municipal General Obligation Bonds,
Private Activity Bonds and Airport Authority Bonds. Enter on this line interest from Maine municipal general obligation bonds, private activity bonds, and bonds issued by a Maine airport authority included in federal adjusted income. 30-A M.R.S. § 5772(9) and 6 M.R.S. § 179(10).
Line 19. A subtraction modification is allowed on the Maine individual income tax return in an amount equal to the reduction in your salaries and wages expense deduction directly related to claiming the federal Work Opportunity Credit or Empowerment Zone Credit. These amounts are reported on federal Form 5884, line 2 or federal Form 8844, line 2.
(Owners of pass-through entities, enter your share of the amount from line 3 of these forms to the extent not included on line 2.) 36 M.R.S.
§ 5122(2)(B).
Line 20. Enter on this line the reduction in federal taxable income related to vessel earnings from fishing operations that were contributed to a capital construction fund. 36 M.R.S. § 5122(2)(I).
Enclose a copy of the federal Form 1040.
Line 21. Income from ownership share in a financial institution. Enter on this line all items of income, gain, interest, dividends, royalties, and other items of income of a financial institution subject to the Maine franchise tax that are included in your federal adjusted gross income due to an ownership share in the financial institution that is a partnership, S corporation, or entity disregarded as separate from its owner. Also enter the employer identification number of the financial institution. 36 M.R.S. § 5122(2)(K).
Line 22. Income from depreciation recapture on the sale of multifamily affordable housing property. To the extent not otherwise removed from Maine income, enter the total amount of capital gains and ordinary income resulting from depreciation recapture in accordance with Internal Revenue Code, Sections 1245 and 1250 realized on the sale of multi-family affordable housing property certified by the Maine State Housing Authority ("MaineHousing"). A copy of the MaineHousing certificate must be attached to the return. 36 M.R.S. § 5122(2)(Z).
Line 23. Sale of eligible timberlands. A subtraction modification is allowed on the Maine individual income tax return equal to the applicable percentage of the gain from the sale of sustainably managed, eligible timberlands that is included in federal adjusted gross income.
The modification may not reduce Maine taxable income to less than zero; however, unused portions may be carried forward for up to 10 years.
Eligible timberlands must be held by the taxpayer for at least 10 years beginning on or after January 1, 2005. Enclose with your return a copy of the written statement from a licensed forester certifying at the time of sale, the sustainably managed eligible timberlands. Use lines 1) through

1. below to calculate the amount of the modification. 36 M.R.S. § 5122(2) (U).
2. Enter the gain recognized on the sale of eligible timberlands included in federal adjusted gross income … $__
3. Enter the applicable percentage amount shown below for the number of years the eligible timberlands were held by the taxpayer beginning on or after January 1, 2005 … __ If the number of years eligible timberlands were held by the taxpayer beginning on or after January 1, 2005 is:

At least But less than Enter
10 11 .0667
11 12 .1333
12 13 .2
13 14 .2667
14 15 .3333
15 16 .4
16 17 .4667
17 18 .5333
18 19 .6
19 20 .6667
20 21 .7333

1. Multiply line 1 by line 2. Enter result on

Schedule 1S, line 23 … $__
Line 24. Business interest deduction recapture. The amount of business interest deduction previously disallowed for Maine tax purposes and required to be added-back under 36 M.R.S. § 5122(1)(NN) may be recaptured, up to 25% per taxable year, to the extent that Maine taxable income is not reduced below zero and the amount has not been previously used to reduce Maine taxable income. 36 M.R.S. § 5122(2) (VV).
Line 25. Enrolled tribal members in Maine. If the amount on Schedule ETM, column C, line 5 is greater than zero, enter that amount on line 25.

# Line 26. Other. See Form 1040ME, Schedule 1S, Other Income

Subtraction Modifications Worksheet (for Line 26) Tax Year 2025 available at maine.gov/revenue/tax-return-forms that lists the income subtraction modifications that may be entered on this line. Unless specifically stated, do not enter non-Maine income on this line.

SCHEDULE A - Maine Tax Adjustments - See pages 25 and 26
Tax Credit Worksheets Required. For more information on all tax credits and related worksheets, visit maine.gov/revenue/tax-return-forms (select Worksheets for Tax Credits). You must complete and attach the applicable tax credit worksheet for each tax credit claimed.
Nonresidents and Safe Harbor Residents only: Personal credits included on Form 1040ME, Schedule A, lines 1, 2, 3, 4, 5, 10, 11, 12, 13, 14 and 20 are limited to the Maine residency period or prorated based on the ratio of Maine income to total income. Tax credits included on Form 1040ME, Schedule A, lines 15 through 20 may be claimed in their entirety, up to the Maine tax liability. Carryover provisions may apply.
SECTION 1 - REFUNDABLE CREDITS:
Line 1. Refundable portion of the Dependent Exemption Tax Credit.
For Maine residents and part-year residents only. Enter the amount from line 11, or line 12, of the Dependent Exemption Tax Credit Worksheet, whichever applies. CAUTION: Your credit may be limited if the amount on Form 1040ME, line 16 is more than $100,000 if single; $125,000 if head of household; $150,000 if married filing jointly or surviving spouse; or $75,000 if married filing separately; OR if you are a part-year resident.
Enclose worksheet. 36 M.R.S. § 5219-SS.
Special instructions for lines 1 and 10. If you have one or more qualifying children and/or dependents for whom you are eligible to claim the federal child tax credit or credit for other dependents under Internal Revenue Code, Section 24, but are not otherwise required to file a federal income tax return, you may be able to claim the Maine dependent exemption tax credit. To determine if you can claim the Maine credit, see "Who Qualifies as Your Dependent" in the federal Form 1040 instructions, complete a pro forma federal Form 1040 and federal Form 1040, Schedule 8812, and enclose with your completed Form 1040ME, Schedule A, and the Dependent Exemption Tax Credit Worksheet. The federal forms and instructions are available at irs.gov.
Line 2. Refundable portion of the Child Care Credit. For Maine residents and part-year residents only. Up to $500 of your Child Care Credit is refundable. Enter the amount from line 5, or line 5a, of the worksheet for Child Care Credit. Enclose worksheet. 36 M.R.S. § 5218.
Line 3. Refundable portion of the Adult Dependent Care Credit. Up to $500 of your credit may be refundable. Enter the amount from line 7, or line 7a, of the worksheet for Adult Dependent Care Credit. Enclose worksheet. 36 M.R.S. § 5218-A.
Line 4. Refundable Earned Income Tax Credit. For Maine residents and part-year residents only. Your Maine earned income tax credit is refundable. Enter the amount from line 2, 3, or 4 of the worksheet for Earned Income Tax Credit, whichever is applicable. 36 M.R.S. § 5219-S.
Taxpayers at least age 18: If you or your spouse (if married filing a joint return) was at least age 18 as of the last day of the tax year, had no qualifying child(ren) during the tax year, and would have otherwise qualified for the federal earned income credit (EIC), you may be able to claim the Maine earned income tax credit even if you were not eligible to claim the federal credit.
Taxpayers filing with an IRS issued individual taxpayer identification number (ITIN): If you or your spouse (if married filing a joint return) filed a federal income tax return using an ITIN assigned by the IRS on or before the due date for filing the return, and would have otherwise qualified for the federal EIC, you may be able to claim the Maine earned income tax credit even if you were not eligible to claim the federal credit.
To determine if you can claim the Maine earned income tax credit, see the Earned Income Tax Credit Worksheet available at maine.gov/revenue/ tax-return-forms. Enclose worksheet.
Line 5. Student Loan Repayment Tax Credit. Graduates of accredited colleges and universities who have obtained an associate, bachelor's, or graduate degree may qualify for a refundable credit based on certain loan payments made in 2025. Enclose worksheet. 36 M.R.S. § 5217-E.
Line 6. Rehabilitation of historic properties after 2007. If you have qualified rehabilitation expenditures associated with a historic structure located in Maine that is placed in service during the tax year, you may qualify for this credit. Enclose worksheet. 36 M.R.S. § 5219-BB.
Line 7. Refundable Dirigo Business Incentives Tax Credit. A certified business with qualified business activities in the State that invests in eligible business property or qualified employee training programs may qualify for this credit. Enclose worksheet(s). 36 M.R.S. §5219-AAA.
Line 8. Other Refundable Tax Credits. See line 6 of Form 1040ME, Schedule A, Lines 8 and 20, Other Tax Credits Worksheet for Tax Year 2025 at maine.gov/revenue/tax-return-forms that lists the tax credits that may be entered on this line. Enclose applicable worksheet(s).
SECTION 2 - NONREFUNDABLE CREDITS:
SECTION 2 - NONREFUNDABLE CREDITS:
Line 10. Nonrefundable Dependent Exemption Tax Credit. For nonresidents only. See the instructions for line 1 above. Enter the amount from line 12 of the Dependent Exemption Tax Credit Worksheet.
Enclose worksheet. 36 M.R.S. § 5219-SS.
Line 11. Nonrefundable portion of the Child Care Credit. Enter the amount from line 6, or line 6a, of the worksheet for Child Care Credit.
Enclose worksheet. 36 M.R.S. § 5218.
Line 12. Nonrefundable portion of the Adult Dependent Care Credit.
Enter the amount from line 8, or line 8a, of the worksheet for Adult Dependent Care Credit. Enclose worksheet. 36 M.R.S. § 5218-A.
Line 13. Nonrefundable Earned Income Tax Credit. For nonresidents only. See the instructions for line 4 above. Enter the amount from line 4 of the worksheet for Earned Income Tax Credit. Enclose worksheet.
36 M.R.S. § 5219-S.
Line 14. Credit for Income Tax Paid to Other Jurisdictions. Enter the amount from line 5 of the worksheet for Credit for Income Tax Paid to Other Jurisdictions. Enclose worksheet(s). 36 M.R.S. § 5217-A.
Line 15. Maine Seed Capital Credit. If you invested in a qualified Maine business of which you are not a principal owner, you may qualify for a credit through the Finance Authority of Maine. Enclose worksheet.
36 M.R.S. § 5216-B.
Line 16. Research Expense Tax Credit. If your business invested in research, you may qualify for this credit for your portion of the expenses.
Enclose worksheet. 36 M.R.S. § 5219-K.
Line 17. Carryforward of Certain Credits. Enter on this line unused portions of the following credits carried forward from prior years: • • Maine Minimum Tax Credit • Employer credits for payment of employee expenses (long-term care insurance, day care expenses) • "Star 5" Quality Child Care Investment Tax Credit • • Tax Credit for Certain Homestead Modifications • • Maine Capital Investment Credit. Enclose worksheet(s) or supporting documentation for each credit claimed.
Line 18. Pine Tree Development Zone Credits. If you expanded your business in Maine, you may qualify for this credit certified through the Department of Economic and Community Development. Enclose worksheet. 36 M.R.S. § 5219-W.
Line 19. Nonrefundable Dirigo Business Incentives Tax Credit.
A certified business with qualified business activities in the State that invests in eligible business property or qualified employee training programs may qualify for this credit. Enclose worksheet(s). 36 M.R.S.
§5219-AAA.
Line 20. Other Nonrefundable Tax Credits. See line 18 of Form 1040ME, Schedule A, Other Tax Credits Worksheet (for Lines 8 and

1. Tax Year 2025 at maine.gov/revenue/tax-return-forms that lists the tax credits that may be entered on this line. Enclose applicable worksheet(s).

# PROPERTY TAX FAIRNESS CREDIT

(Form 1040ME, line 25d)
You may qualify for the refundable Property Tax Fairness Credit up to $1,000 ($2,000 if you are 65 years of age or older)* if you meet all of the following:

• You were a Maine resident during any part of the tax year;
• You owned or rented a home in Maine during any part of the tax year and lived in that home as your principal residence during the year;
• Your total income during 2025 was less than the amount shown in the table below for your filing status and the number of qualifying children and dependents on Form 1040ME, line 13a (OR, less than $102,500 if you are 65 years of age or older):
• You paid property tax on your home (principal residence) in Maine during the tax year that is greater than 4% of your total income or you paid rent on your home (principal residence) in Maine during the tax year that is greater than 26.67% of your total income.

Note: The amount of property tax or rent you can include may be limited. See line 8 on Schedule PTFC/STFC.

• Your filing status is single, head of household, married filing jointly, or qualifying surviving spouse.

*If you or your spouse, if married, are a veteran of the United States Armed Forces who is rated 100% permanently and totally disabled as a result of one or more service-connected disabilities by the United States Department of Veterans Affairs, you may be eligible for a refundable property tax fairness credit up to $2,000 ($4,000 if you are 65 years of age or older).
Note: You cannot take the Property Tax Fairness Credit if your filing status is married filing separately.
See Schedule PTFC/STFC for more information.

# SALES TAX FAIRNESS CREDIT

(Form 1040ME, line 25e)
You may qualify for the refundable Sales Tax Fairness Credit up to $280, depending on the number of qualifying children and dependents on Form 1040ME, line 13a, if you meet all of the following:

• You were a Maine resident during any part of the tax year;
• Your total income during 2025 was not more than $32,950 if filing single; $51,700 if filing head of household; or, $63,950 if married filing jointly; and
• Your filing status is single, head of household, married filing jointly, or qualifying surviving spouse. Note: You cannot take the Sales Tax Fairness Credit if your filing status is married filing separately or if you are claimed as a dependent on another person's return.

See Schedule PTFC/STFC for more information.
● Maine personal exemption amount: $5,150.
● Maine standard deduction base amounts:

• $15,000 single or married filing separately;
• $22,500 head of household;
• $30,000 married filing jointly or qualifying surviving spouse.

● Maine itemized deductions are limited to $36,300, except medical expenses are not subject to the limit.

• Use Form 1040ME, Schedule 2 to claim Maine itemized deductions.

● To report income that is taxable in Maine but not by the federal government (income addition modifications), use Form 1040ME, Schedule 1A. To report income that is taxable by the federal government but not in Maine (income subtraction modifications), use Form 1040ME, Schedule 1S.
● Property Tax Fairness Credit maximum income limitation: $63,750 if single; $101,250 if head of household or married filing jointly or qualifying surviving spouse; or, $102,500 if 65 years of age or older.
See Schedule PTFC/STFC for more information. Married taxpayers filing separate tax returns do not qualify for the credit.
● Sales Tax Fairness Credit maximum income limitation: $32,950 single; $51,700 head of household; or, $63,950 married filing jointly or qualifying surviving spouse. See Schedule PTFC/STFC for more information. Married taxpayers filing separate tax returns do not qualify for the credit.
● Child and dependent care credit is refundable for Maine residents and part-year residents, up to $500.
● Adult dependent care credit is refundable for Maine residents and part-year residents, up to $500.
● Earned income tax credit is refundable for Maine residents and partyear residents.
● Dependent exemption tax credit is refundable for Maine residents and part-year residents, up to $305 for each qualifying child or dependent that is at least six years of age, or $610 for each qualifying child or dependent that is under six years of age. The credit is subject to phaseout.
● Student loan repayment tax credit is available for qualified individuals who have obtained an associate, bachelor's, or graduate degree from an accredited Maine or non-Maine college after 2007 and have made eligible education loan payments.

2025 Tax Year Quick Facts
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# For Single Individuals and Married Persons Filing Separate Returns

# For Married Individuals and Surviving Spouses Filing Joint Returns