ME · Payroll tax 2026
The true cost of hiring in Maine
Estimate what a W-2 employee costs in Maine and compare it with a 1099 contract using sourced 2026 payroll-tax defaults that you can adjust to your assigned rate.
Estimate a Maine hire
Pre-filled with a 2.23% base new-employer rate. Adjust SUI, salary, benefits, and the 1099 rate to fit your hire.
Results update instantly. Your values stay in this browser.
A W-2 hire in Maine costs more than salary. Employers pay federal FICA and FUTA plus state unemployment insurance. For 2026, HiringMath uses a 2.23% base new-employer rate on the first $12,000 of wages, producing up to about $268 of state UI tax per worker before experience-rating or account-specific adjustments. Maine taxes wage income, which creates a withholding obligation but is not an employer-paid tax. The calculator below combines those statutory items with editable benefits, workers' compensation, and overhead, then compares the result with a 1099 contract.
Maine employer tax facts
| Item | ME |
|---|---|
| Base new-employer SUI rate | 2.23% |
| SUI taxable wage base | $12,000 |
| Federal FICA (employer) | 7.65% |
| FUTA | 0.6% |
| State income tax on wages | Yes |
| Worker classification test | ABC framework |
Example: a $75,000 hire in Maine
At a $75,000 base salary with typical benefits, a W-2 employee in Maine costs an employer $99,347 per year — $24,347 above base pay. An equivalent 1099 contract at $75,000 would cost $24,347 less; the breakeven contract rate is $99,347.
Misclassification risk in Maine
Test: ABC framework
ABC framework; back taxes and civil exposure may apply.
Penalties by stateCompare nearby rates
Maine's 2.23% new-employer SUI rate sits near Wyoming (2.35%), Missouri (2.38%), Hawaii (2.4%), Oregon (2.4%). See the full 51-state comparison or the 2026 employer payroll tax reference.
Common questions
Maine hiring-cost FAQ
What SUI rate does HiringMath use for Maine?
The calculator starts with a 2.23% base new-employer rate, applied to the first $12,000 of each employee's 2026 wages. Your assigned rate can differ because of industry, surcharges, and claims history, so replace the default with the rate on your state notice when available.
Does Maine have a state income tax?
Yes. Maine taxes wage income. Employers withhold it from employee pay, but it does not directly increase the employer's payroll-tax cost.
What should employers know about worker classification in Maine?
ABC framework; back taxes and civil exposure may apply. This is a planning summary, not legal advice; confirm classification decisions with the relevant agency or counsel.