Maine Approves Millionaire Tax to Fund Social Programs

New 2% surcharge on income over $1 million expected to raise $96 million in first year.

Apr. 16, 2026 at 7:30pm

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A serene, painterly depiction of the Maine State House building, its facade and windows bathed in warm, golden sunlight and deep shadows, conceptually representing the state government's historic decision to implement a new tax on high-income residents.The Maine State House, where lawmakers recently voted to approve a new millionaire tax to fund social programs across the state.Augusta Today

The Maine Legislative Appropriations Committee has voted to include a millionaire tax in the state's supplemental budget. The new 2% surcharge on income over $1 million is expected to generate $96 million in the first year and $150 million over the following biennium. The funds will be used to increase property tax credits, expand childcare assistance, boost pay for care workers, and provide tuition-free community college.

Why it matters

For years, middle-income Maine families have paid a higher effective tax rate than the state's wealthiest 1%. The millionaire tax is seen as a way to address this imbalance and fund important social programs that will improve the quality of life for all Mainers.

The details

The millionaire tax would apply to around 2,600 people, or 0.4% of Maine's taxpayers. While some fear it could cause the wealthy to flee the state, when Massachusetts passed a similar 4% tax in 2022, it raised nearly twice what was projected and the number of millionaires in the state grew by 38.6%.

  • The Legislative Appropriations Committee voted to include the millionaire tax in Maine's supplemental budget recently.

The players

Maine Center for Economic Policy

A nonpartisan research organization that provided analysis on the potential impact of the millionaire tax.

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What they’re saying

“this would affect some 2,600 people or 0.4% of Maine's taxpayers. In return it would generate $96 million in the first year and $150 million in the following biennium.”

— Maine Center for Economic Policy

What’s next

The millionaire tax proposal now heads to the full State House and Senate for a vote. Residents are encouraged to contact their state representatives and senators to voice support for the measure.

The takeaway

The millionaire tax represents a significant step towards greater tax fairness in Maine, with the potential to fund important social programs that will benefit middle-income families and improve the overall quality of life in the state.