No Tax on Tips Calculator for Maine (2026)
Calculate how much Maine workers save now that tips are deductible from federal taxable income (caps and income limits apply) under the OBBBA.
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Your Annual Tax Savings in Maine
Tips Tax Deduction in Maine
Under the One Big Beautiful Bill Act (OBBBA), workers in Maine who earn tips can deduct 100% of their tip income from federal income tax for tax years 2025 through 2028.
Maine Minimum Wage for Tipped Workers
The minimum wage in Maine is $14.65/hour. Tipped workers may be paid a lower base wage of $7.33/hour, with tips expected to make up the difference. This makes the federal tip tax deduction especially valuable for Maine workers.
Top Tipped Industries in Maine
- Restaurant servers
- Bartenders
- Lobster boat crews
- Hotel staff
Does Maine Tax Tips? (State Conformity)
State Income Tax Applies to Tips
Maine has a state income tax rate of 7.1%. While the OBBBA exempts tips from federal income tax, Maine may still tax tip income at the state level. Check with a local tax professional for details.
How the No Tax on Tips Law Works
What Qualifies
- Cash tips received directly from customers
- Credit/debit card tips
- Tips from tip pools or tip sharing
- Service charges distributed as tips
What Doesn't Change
- FICA taxes still apply: You still pay 6.2% Social Security + 1.45% Medicare on tip income
- Tips must still be reported: Report all tips to your employer and on your tax return
- Annual cap: Deduction limited to $25,000 per year in tip income
- Income limit: The deduction applies to workers earning less than $150,000/year (single) or $300,000 (married filing jointly)
Overtime Tax Deduction in Maine (2026)
The same OBBBA Schedule 1-A rules apply nationwide: only the FLSA overtime premium (the half of time-and-a-half) is deductible, up to $12,500 ($25,000 joint), with MAGI phase-outs. Maine state income tax may still apply to overtime wages even when the federal premium deduction is available.
Use the free Overtime Tax Calculator to estimate federal savings for Maine workers — including common searches like “maine overtime tax calculator.”
Federal Calculators
Compare with the federal-level tools: Tip Tax Savings (Federal) | Overtime Tax Calculator (Federal)