Maine tips calculator: $7.85 service wage in 2027
Maine’s tax office recommended against adopting no tax on tips, and Maine starts from federal AGI, so tips stay taxable; on the wage side the service-employee rate rises to $7.85 on January 1, 2027.
“Do not adopt”
The Office of Tax Policy’s September 2025 conformity report estimated that adopting the tips deduction would cost Maine between $6.2 million and $13.1 million a year over the fiscal years it scored, and listed it under “Do not adopt.” Maine Revenue Services’ summary of 2026 legislative changes contains no tips deduction, so 2026 matches 2025.
Maine figures
| Cash wage / minimum | $7.55 / $15.10 |
|---|---|
| In force | July 1, 2026 – December 31, 2026 |
| Next change | January 1, 2027: $7.85 / $15.70 |
| Tipped threshold | More than $191 a month in tips |
| Tips on the 2025 return | tips stay taxable in this state. The Office of Tax Policy’s conformity report lists No Tax on Tips as “Do not adopt”; Maine starts from federal AGI, which still includes tips. Source: Maine Revenue Services, Office of Tax Policy |
| Tips on the 2026 return | tips stay taxable in this state. The 2026 legislative changes summary contains no tips deduction. Source: Maine Revenue Services |
A high tipped threshold and a half-minimum cash wage
The Maine Department of Labor announced that the minimum rises from $15.10 to $15.70 on January 1, 2027, based on the BLS inflation data the statute requires, and the service-employee wage from $7.55 to $7.85. Workers are “service employees” only above $191 a month in tips, and the employer must show that cash wage plus tips reaches $15.70 an hour. The overtime-exempt salary floor becomes $905.79 a week.
A Portland server in January 2027
Federally, $17,000 of tips saves $1,970; Maine taxes them in full. A 30-hour week at the 2026 rate of $7.55 pays $227 in cash; with $140 of tips that falls $87 short of $453.
Check a Maine workweek (2027 rates load on January 1)
Where these figures come from
- Maine Revenue Services · Maine Department of Labor
- Office of Tax Policy Report on Maine Tax Conformity and Federal Public Law 119-21 (2025-09-30)
- Summary of 2026 legislative changes (legischange26) (2026)
- Minimum Wages for Tipped Employees (table by state) (2026-07-01)
- Maine’s Minimum Wage to Increase to $15.70 Per Hour in 2027 (2026)
Federal rules: how the deduction works. Nearby: New Hampshire.
Figures verified against primary sources on