In a historic move for tax fairness in Maine, Governor Mills signed a millionaire tax into law as part of the state’s supplemental budget. Maine is one of a growing number of states ensuring the wealthiest pay their fair share.
The new law establishes a 2% surcharge on income over $1 million, affecting just 2,600 filers — less than half a percent of Maine taxpayers. It is estimated to generate $96 million in FY27 and $150 million in the following biennium, providing a critical and stable source of funding for workers, families, and students.
“Maine made history today. For too long, our tax code asked the most of those with the least — and today, that changes,” said Maura Pillsbury, State and Local Tax Policy Analyst, Maine Center for Economic Policy. “This surcharge will generate hundreds of millions of dollars for workers, families, and students, and it sends a clear message: Maine is committed to a tax system that’s fair and an economy that works for everyone.”
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