TIN ComplianceA resource from TIN Comply
Backup withholding
Yes, 5%
Nonresident payments
No
Forms
941ME, 900ME
State withholding

Maine backup withholding and nonresident contractor withholding

Maine rides on the federal trigger. Under 36 M.R.S. 5255-B, a person who must withhold federal income tax from a non-wage payment, including backup withholding under IRC 3406, withholds a flat 5 percent for Maine, and Rule 803 lists reportable payments subject to federal backup withholding first among the covered items. The same flat-rate rule covers IRC 1441 and 1442 withholding on foreign payees. Maine has no separate rule for nonresident contractors or entertainers. Withholding is reported on Form 941ME quarterly and reconciled on Form W-3ME by February 28.

State backup withholding requiredNonresident non-wage withholding not requiredSources checked November 1, 2026Updated November 1, 2026
In this guide
  1. Status
  2. State backup withholding
  3. What Maine does not require
  4. Pass-through entity withholding
  5. From the source
  6. What to confirm
  7. Sources

Status

State backup withholdingRequired

Primary source (statute, regulation or agency publication saved in full); statute text retrieved directly; Rule 803 from a saved extract because maine.gov blocks automated retrieval

Non-wage payments to nonresidentsNot required

Primary source (statute, regulation or agency publication saved in full)

Federal backup withholding under IRC 3406 (24 percent on a missing or mismatched TIN) applies in Maine exactly as everywhere else; this page covers only what the state adds. The 50-state tables put Maine next to its neighbours, and the Maine 1099 filing page covers whether the state wants its own copy of the 1099.

State backup withholding

Trigger
Payer maintaining an office or doing business in Maine that must withhold federal income tax from a non-wage payment (Rule 803 .05(A) lists reportable payments subject to federal backup withholding under IRC 3406 first). Relies on the federal trigger by reference; no separate Maine missing-TIN trigger.
Rate
Flat 5% of the payment (36 M.R.S. 5255-B; Rule 803 .05(A))
Statute
36 M.R.S. 5255-B (certain items of income under the IRC); 36 M.R.S. 5250; MRS Rule 803 (Withholding Tax Reports and Payments)
Withholding return and forms
Form 941ME quarterly withholding return; Form 900ME payment voucher (not used when paying by EFT); Form W-3ME annual reconciliation; federal 1099 series to payees
Deposit schedule
Quarterly return and payment on or before the last day of the month following the quarter; semiweekly remitters (lookback over $18,000) follow a Wednesday/Friday deposit schedule
Annual reconciliation
Form W-3ME due February 28 of the following year
Payee statement
Form 1099 series furnished by the federal due date; Maine e-filing of 1099s required for payers that must e-file federally
Exemptions
Payments excluded from Maine taxation; withholding under IRC 1441/1442 handled by the same flat-rate rule; wages (5250), real estate (5250-A) and gambling (5255-C) are separate

What Maine does not require

Withholding on non-wage payments to nonresidents

No withholding on non-wage payments to nonresidents: No Maine rule for nonresident independent contractors, entertainers or athletes outside the wage rules; Rule 803 contains no such provision. Non-wage payments to nonresident aliens and foreign corporations subject to IRC 1441/1442 are subject to the 5% flat-rate rule above.

Basis: Primary source (statute, regulation or agency publication saved in full).

Pass-through entity withholding (out of scope)

Maine requires pass-through entities to withhold for nonresident members (36 M.R.S. 5250-B; 8.93% corporate members, 7.15% others; Form 1099ME). Entity-level withholding on distributions to nonresident owners is a duty of the entity, not of a payer, and is not covered on this page.

From the source

“a tax equal to 5% of the income, unless withholding pursuant to the Code is based on other than a flat rate amount”

36 M.R.S. 5255-B, read November 1, 2026

What to confirm

  • Rule 803 was captured as extracted text (maine.gov blocks automated download); the statute was retrieved directly.

Sources

Each source below was read and saved on November 1, 2026; the page is built from the saved text. Statutes are cited to the section; department pages and publications to their title and, where shown, revision date.

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