The Maine bonus tax calculator at the top of this page helps employers quickly estimate employee take-home pay (also known as net pay) for bonuses. It uses Maine’s five percent flat withholding rate, which applies when supplemental wages like bonuses are paid separately from regular wages.
Behind the numbers
Behind the numbers
Updated: July 11, 2025
Does Maine tax bonuses?
Yes. In Maine, bonuses are considered regular wages and are subject to income tax withholding. The method used depends on how the bonus is paid:
- If bonuses are paid with regular wages, employers must use the aggregate method — combine all wages and apply standard withholding tables.
- If paid separately, employers may:
- Use a flat 5% withholding rate (the calculator on this page uses that method), or
- Use the aggregate method based on the previous pay period.
How to calculate bonus tax in Maine
Add the bonus to the employee’s regular wages and apply Maine’s standard withholding tables based on the W-4ME form. You can use the calculator tool toward the top of the page to help along the way.
How can employers in Maine pay bonuses to employees?
Bonuses can be paid via:
- Check
- Direct deposit
- Pay card
Why are bonuses taxed differently than standard pay?
They’re not in Maine — all income is subject to regular graduated withholding unless specifically exempted.
How much tax is taken out of a bonus in Maine?
It may seem like a lot of numbers to keep up with, but here’s how bonus withholding typically works:
- Federal withholding: 22%
- Maine withholding: 5% (if using the flat method), or up to 7.15% under standard tables
- Total: Up to 29.15% combined, plus any other deductions
How do bonuses work in Maine?
Employers must include bonuses in total wages, withhold appropriately, and report the earnings on Form W-2. No flat state rate applies.