Maine Mileage Deduction 2026

Maine's top income tax rate is 7.15%. That is high enough that every deductible mile carries meaningful state-level savings. At 15,000 business miles and a 7% effective rate, you save roughly $798 in state taxes on top of about $4,252 federal. That is about $5,050 total.

New for 2026: Maine added a 2% surcharge on income above $1 million, pushing the top marginal rate to 9.15%. If your Schedule C income puts you in that range, your mileage deduction is worth nearly a dime per dollar at the state level alone.

Maine also offers a Property Tax Fairness Credit, up to $1,500 for homeowners under 65, that is refundable on your state return. It is separate from your mileage deduction, but worth claiming when you file.

How to File

Deduct on federal Schedule C, Line 9 at 76¢/mile. Maine starts with your federal adjusted gross income, so the mileage deduction flows through to your state return. Keep a mileage log with the date, destination, purpose, and miles for each trip.

The state does not require employers to reimburse mileage.

FAQ

Does Maine's new millionaire surcharge affect my mileage deduction?

If your income exceeds $1 million, your mileage deduction saves at the 9.15% marginal state rate instead of 7.15%. For most filers, the standard 7.15% top rate applies.

Does my mileage deduction reduce Maine state taxes?

Yes. Maine starts with your federal adjusted gross income. Your Schedule C mileage deduction reduces that number directly.

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