Bill > LD1363

This bill modifies Maine's income tax law to exempt income earned by individuals under 18 years of age from state income tax. Specifically, the legislation stipulates that for tax years beginning on or after January 1, 2026, the income of resident minors (those under 18) will not be taxable, either to the minor themselves or to the taxpayer who claims them as a dependent. The bill amends existing tax code to clarify that the state income tax will only be imposed on residents who are 18 years of age or older, effectively creating a blanket tax exemption for minors' earnings. This change aims to provide financial relief to young workers and their families by ensuring that income earned by teenagers and younger individuals is not subject to state income taxation. The exemption will apply to all types of income earned by minors, whether from part-time jobs, internships, allowances, or other sources, making it a comprehensive tax break for young workers in Maine.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1363&snum=132