According to The Maine Wire, Maine has introduced a 2% surcharge (a.k.a. tax) “on wealthy Mainers, applying to the portion of a resident’s taxable income beyond $1 million for single filers, $1.5 million for heads of household, and $1.5 million for people filing jointly. The idea was originally introduced in a separate bill, LD 1089, before being folded into the budget process. Supporters have said the tax could generate roughly $64 million to $75 million annually for K-12 education.”
The Wall Street Journal’s Jeanne Whalen notes that Maine is yet another blue state to tax the wealthy, writing:
Maine has one of the nation’s smaller economies, rooted in timber, lobster, manufacturing and tourism.
But it also has growing pockets of wealth, which have caught the attention of state bean counters. Maine this month joined a growing list of blue states exploring or adopting new taxes on the highest earners, enacting a new 2% surcharge on annual income over $1 million.
Early on in February 2026, The Tax Foundation warned that states would be targeting high-wealth and high-income individuals this year. Manish Bhatt wrote:
Some states are looking to implement taxes on high earners and high-net-worth individuals. Proponents of the California Billionaire Wealth Tax ballot initiative seek to levy a one-time, five percent tax on individuals with a net worth of $1 billion or more. Beyond the flaws in the proposal that would yield a far higher tax than anticipated, California’s economy could see significant outmigration of high-net-worth individuals and capital alike.
Some in Washington State are proposing a specific tax on individuals earning more than $1 million in a single year. Importantly, this proposal does not seek to tax net worth, which would prevent taxpayers earning less than the threshold from being subject to the wealth tax because of home values. Still, Washington could face similar losses of high-earning individuals and businesses.
Most states do not have yearlong legislative sessions, requiring lawmakers to consider numerous bills, on a multitude of topics, in a condensed time frame. Often, this leaves little time for debate on tax legislation that can affect a state’s economic standing and competitiveness for years. Therefore, ensuring that any tax reform is fiscally responsible and accords with the principles of sound tax policy—simplicity, transparency, neutrality, and stability—should be top-line priorities.
Action Line: If your state is looking at your money like an opportunity to finance a radical agenda, you may want to look for a better America. Start your search with Your Survival Guy’s 2026 Super States. And click here to subscribe to my free monthly Survive & Thrive letter.
