ME · State Guide · Tax year 2026

Maine nanny tax guide

Everything you need to pay a nanny, caregiver, or household employee legally in Maine— the rates CareTax uses to calculate your pay runs, the forms you'll file, and the state portals you'll file them through.

SUI (new employer)

2.41%

On first $12,000

SDI

None

PFML

1%

No wage cap

State income tax

Progressive

Bracketed

Minimum wage

$14.65/hr

Workers' comp

Not required

Quick Facts

ItemValueNotes
Minimum Wage$15.10/hr$15.10/hr statewide; Portland $16.75; Rockland $16.00
Pay FrequencyAt least every 16 days
Overtime Rules1.5x after 40 hrs/week; applies even to live-in
Record Retention3 years

State Income Tax

Withholding Form: W-4ME

Unemployment Insurance

Registration: Register online

Paid Family & Medical Leave

Program: Paid Family and Medical Leave (PFML)

Yes -- 1% payroll tax; 12 weeks paid leave (eff Jan 1, 2026)

ItemValue
Employee ContributionYes
Max Weeks12 weeks

Paid Sick Leave

Yes -- 1% payroll tax; 12 weeks paid leave (eff Jan 1, 2026)

New Hire Reporting

Deadline: Within 20 days of hire

Report Online: File report

Special Requirements

Meal break 30 min after 6 hrs (if 2+ employees); overtime applies even to live-in (unlike most states)

Required Forms

Form W-4ME

Maine state income tax withholding form

Purpose: Employee completes for state tax withholding

Key Deadlines

DeadlineDateDescriptionFrequency
New Hire ReportingWithin 20 days of hireReport new employees within 20 days to the stateat-event

State Agencies

Sources

Frequently asked

Do I owe nanny tax in Maine?
If you pay a household employee $3,000 or more in 2026, you owe federal FICA (Social Security and Medicare). If you pay $1,000 or more in any calendar quarter, you owe FUTA. Maine state unemployment kicks in once you exceed the state's wage threshold — typically the first $12,000 of wages.
What is the Maine SUI rate for a new household employer?
New household employers in Maine start at 2.41%, applied to the first $12,000 of each employee's wages per year. Your rate can change once the state assigns you an experience rating, usually after 2–3 years.
Does Maine require Paid Family and Medical Leave (PFML)?
Yes. Maine requires PFML contributions totaling 1% of wages. The employee share is 0.5% and the employer share is 0.5%.
How much state income tax do I withhold for a Maine nanny?
Maine uses progressive tax brackets. Your employee's state income tax withholding depends on their expected annual wages and filing status per their state withholding certificate. CareTax's calculator handles bracketed withholding automatically for every pay run.
What forms do I need to file for a household employee in Maine?
Federally: Schedule H (filed with your personal Form 1040), W-2 and W-3 (given to your employee and filed with the SSA), and quarterly EFTPS deposits if your liability exceeds $1,000/year. In Maine: new-hire reporting, quarterly SUI filings, and any required state income tax withholding returns. CareTax generates all federal reference documents and points you to the Maine state portals.