Comparison of Tax Structures: Maine vs. Kentucky
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Maine Tax Overview
- Maine does not have a franchise tax for LLCs.
- Maine has an income tax that applies to LLCs based on income level.
- Sales tax of 5.5%-6.5% applies to some goods and services.
- Understanding small business taxes is the first step to financial transparency.
- Property tax rates in Maine are above average.
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Kentucky Franchise Tax Information
- Kentucky charges businesses an annual franchise tax based on income and other factors.
- Rates for Kentucky franchise tax are $0.095 per $100 of gross Kentucky receipts and $0.75 per $100 of Kentucky gross profits.
- Partial exemption for businesses with gross receipts under $3 million, phasing out up to $6 million.
Comparison of Sales Tax and Property Tax
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Sales Tax Comparison
- Sales tax in Maine of 5.5%-6.5% applies to goods like furniture, appliances, vehicles.
- Groceries, medicine, and gasoline are exempt from sales tax.
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Property Tax Rates
- Average property tax rate in Maine is 1.30% compared to the national average of 1.07%.
- Typical resident pays $2,597 per year in property taxes.
Tax Comparison: Maine and Kentucky
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Maine Tax Scenario
- Maine does not have a franchise or privilege tax.
- Understanding small business taxes is essential.
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Kentucky Tax Scenario
- Kentucky charges an annual franchise tax based on income and other factors.
- Partial exemptions are available for certain businesses based on gross receipts.
Tax Burden and Goods Subject to Sales Tax in Maine
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Tax Burden
- Maine ranked 4th highest for state taxes as a percentage of income.
- Property tax rates in Maine are above the national average.
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Goods Subject to Sales Tax
- Taxable goods in Maine include furniture, home appliances, and motor vehicles.
- Groceries, prescription medicine, and gasoline are tax-exempt in Maine.