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Maine Capital Gains Tax

Maine taxes capital gains as ordinary income using its progressive brackets.

Why It Matters

Understanding how Maine taxes capital gains helps you estimate the true cost of selling investments, plan asset sales, and compare after-tax returns across states.

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How It Works

The calculator computes both your federal capital gains tax and Maine state tax to show your combined burden. Enter your gain amount, other income, and filing status.

Example

Single filer • $10,000 long-term gain • $100,000 other income • 2025

Federal

$1,500

15.00% rate

Maine

$715

7.15% rate

Total

$2,215

22.15%

Resources

Maine Capital Gains Tax Information

Official Maine tax information relevant to capital gains, including rates, forms, and filing resources.

Source: Maine Tax Authority

Frequently Asked Questions

Does Maine distinguish between short-term and long-term gains?

No. At the state level, Maine taxes both short-term and long-term capital gains as ordinary income. The federal preferential rates (0%/15%/20%) still apply to long-term gains for the federal portion.

How does Maine tax capital gains?

Maine taxes capital gains as ordinary income using progressive brackets. The top marginal rate is 9.2%, but your effective rate depends on your total taxable income.

What is the combined capital gains tax rate in Maine?

The maximum combined rate is 33.0% (federal 20% + NIIT 3.8% + state 9.2%). Most filers pay less because of progressive brackets and the federal 0%/15% rates.

Key Terms

A tax-deferred swap of one investment property for another, allowing you to postpone paying capital gains tax.

Property you own for investment or personal use that can generate a capital gain or loss when sold.

The profit from selling a capital asset for more than you paid for it.

The loss from selling a capital asset for less than your cost basis.

The original value of an asset for tax purposes, usually the purchase price plus certain adjustments.

A category that determines your tax bracket thresholds, standard deduction, and eligibility for certain credits.

How long you owned an asset before selling it, which determines whether gains are taxed at short-term or long-term rates.

Long-Term Capital Gains

Profits from selling assets held for more than one year, taxed at preferential federal rates of 0%, 15%, or 20%.

Marginal Tax Rate

The tax rate applied to your next dollar of income — the highest bracket you've reached.

Modified Adjusted Gross Income

Your adjusted gross income (AGI) with certain deductions added back, used to determine eligibility for tax benefits and surtaxes like the NIIT.

Net Investment Income Tax

A 3.8% federal surtax on investment income for individuals with MAGI above $200,000 (single) or $250,000 (married filing jointly).

Short-Term Capital Gains

Profits from selling assets held for one year or less, taxed as ordinary income at rates up to 37%.

Step-Up in Basis

When an inherited asset's cost basis is reset to its fair market value at the date of the owner's death, eliminating all unrealized capital gains.

Your gross income minus deductions — the amount used to determine which tax bracket you fall into.

An IRS rule that disallows a capital loss deduction if you buy a substantially identical security within 30 days before or after the sale.

Next review: 2027-01-15 • Applies to tax year: 2025