An Act To Bring Fairness In Income Taxes To Maine Families By Adjusting The Tax Brackets

This bill updates Maine's individual income tax brackets for single filers, heads of households, and married couples filing jointly, with specific rules applying from 2017 through 2024 and new, higher thresholds taking effect in 2025. For the 2017 to 2024 period, it sets lower income limits at which higher tax rates begin, while the 2025 provisions significantly raise these income thresholds to reduce the tax burden on middle-income earners. Additionally, the legislation changes how future tax brackets are adjusted for inflation by using the Chained Consumer Price Index rather than the standard Consumer Price Index. These changes directly affect all Maine residents who file state income tax returns by altering the specific dollar amounts and percentages used to calculate their tax liability.