Most of what changes for a tradesperson in Maine is set by the state, not Washington: how you get paid, whether you need to register, and what you owe in tax. Here is what actually differs, and where to run your own numbers.
Each section below points to a tool that runs your exact numbers for Maine.
Tax in Maine
Maine has a graduated state income tax that runs up to 7.15% at the top, on top of your federal taxes. Graduated means the rate climbs as your profit does, so a good year costs proportionally more. You owe federal income tax and self-employment tax as well, and you make estimated payments to both Maine and the IRS through the year.
On sales tax, Maine follows the usual rule for the trades: your labor is not taxed, and you pay sales tax on your materials when you buy them rather than charging it to the customer.
Work out what to hold back on the Tax Set-Aside Calculator, which runs the federal and self-employment numbers for Maine.
Getting paid: liens and retainage
A mechanic's lien is the tool that actually gets a Maine contractor paid, and in Maine you generally have to record it within 90 days of your last day of furnishing. Miss it and you lose the lien, so the dates matter.
Enforcing it has its own clock. 120 days from your last labor or furnishing to get the complaint filed with the court (3255) - shown because it is the shorter of the two clocks in play; the attachment itself has to be made within 180 days of the same event. If you did not contract with the owner you also cannot serve the complaint and summons on them until 30 days after filing. Work out your dates on the Lien Deadline tool, and if they are close, get an attorney to confirm them against the statute (10 M.R.S. 3253, 3255).
On money held back as retainage, here is where Maine lands:
NOT VERIFIED AS A WHOLE ROW. 5 M.R.S. §1746 was read and the public 5% and its no-period release carry their own citations. The private side has not been read through: 10 M.R.S. §1113 and §1118 were retrieved and neither carries a retainage cap, which is not the same as having established there is none.
- Private work: No statutory cap on private work in Maine. Whatever your contract says governs, so read the withholding clause.
- Public work: 5% of the money due the contractor.
- Release: Public: no number of days is set at all. It falls due on acceptance of the project by or for the State.
Heads up: The private-work figures are not verified, 10 M.R.S. §1113 and §1118 were retrieved and neither carries a retainage cap, but the private side has not been read through.
Check the Retainage Calculator before you sign a contract that holds back more.
There is no Maine retainage letter on this site, and the NOT VERIFIED line above is why. A letter that tells the party holding your money what to hand over only gets written over a row that has been read against the statute in full. The Document Hub carries the forms that do not turn on a state rule.
Do you need a license in Maine?
Maine has no statewide general contractor license, so for most building work there is no state license to get. That is one of the things that makes Maine straightforward to start in. It does not mean no rules at all: the state still licenses specific trades like electrical and plumbing, and your city or county can require its own registration or permits, so always check locally before you take a job on.
Trade licenses for electrical, plumbing and HVAC are usually separate and often required even where a GC license is not. See what applies to your trade on the Contractor License Checker.
Building codes and permits
Maine adopts its building codes statewide, so the rules travel with you across the state. Editions still move, so confirm yours with the building department before you price a job.
- Homes: 2021 (published as part of MUBEC, effective 7 April 2025)
- Electrical: 2026 (effective 1 July 2026 for installations commencing on or after that date; the 2023 edition still governs work commenced earlier)
- Energy: 2021, with ASHRAE 90.1-2019 additionally for commercial work only (effective 7 April 2025)
- Plumbing: 2021 UPC (published as the Maine State Internal Plumbing Code, effective 1 January 2022)
Maine's building, residential, energy and mechanical codes travel together as MUBEC, but MUBEC is only mandatory in municipalities of 4,000 or more. Most Maine towns are below that threshold and may choose not to enforce it; they may not substitute a different code, so MUBEC remains the standard even where nobody inspects. Electrical and plumbing work differently again: both are tied to the state license rather than to town size, so they apply statewide whatever the population. The electrical code turned over to the 2026 NEC on 1 July 2026, and work that genuinely commenced before that date is still judged under the 2023 edition, so both are live depending on start date. Commercial work carries an additional ASHRAE 90.1-2019 layer that does not touch a house.
Source: Technical Building Codes and Standards Board under 10 M.R.S. §9722 (MUBEC); Electricians' Examining Board, chapter 120 installation standards (2026 NEC); Plumbers' Examining Board, 02-395 chapter 4 (2021 UPC). Read against that source on 2026-08-25.
Check a specific job on the permit tool.
Pay and workers' comp
The minimum wage in Maine is $15.10 an hour. CPI-indexed. That is the floor for anyone you put on the books, and it is worth confirming against the state labor department each year because several states step their rate mid-year. Check a rate on the minimum-wage tool.
Workers' comp rates in Maine are not published as a single figure; they turn on your trade's class code and your payroll. Get a realistic range on the Workers' Comp Estimator, then get a real quote.
If a client will not pay
If a client will not pay, you can sue for up to $10,000 in Maine's District Court, small claims. That covers most unpaid-invoice disputes for a small outfit; a bigger claim goes to regular civil court where you will probably want an attorney. Walk through whether filing is worth it on the Small Claims checker.
The clock runs the other way too: a client generally has 6 years to sue you over the work under a written contract in Maine, and there is no absolute cutoff, so your exposure turns on when a defect is found. Work out your exposure on the Warranty & Claim Deadline tool.
Common questions
How much state income tax will I pay in Maine?
Maine has a graduated rate up to 7.15% state income tax on your profit, on top of federal income tax and self-employment tax. Use the Tax Set-Aside Calculator to see what to hold back.
Do I need a contractor's license in Maine?
For most general building work, no. Maine has no statewide general contractor license. The state still licenses specific trades and your city or county may require its own registration, so check both.
What is the small claims limit in Maine?
You can sue for up to $10,000 in Maine's District Court, small claims. The filing fee is typically $70. Larger claims go to regular civil court.
How long do I have to file a mechanic's lien in Maine?
Generally 90 days from your last day of furnishing. Miss it and you lose the lien. Work your own dates out on the Lien Deadline tool.
What is the minimum wage in Maine?
$15.10 an hour in Maine, above the federal $7.25. Several states step their rate mid-year, so confirm it before you set a payroll.
What building code does Maine use?
Maine adopts statewide. Homes: 2021 (published as part of MUBEC, effective 7 April 2025). Electrical: 2026 (effective 1 July 2026 for installations commencing on or after that date; the 2023 edition still governs work commenced earlier). Editions move, so confirm yours with the building department before you price a job.
The honest bit
These are the 2026 rules for Maine as they stood when this guide was written, and they change: legislatures move thresholds, deadlines and rates every year. Treat this as general guidance to point you in the right direction, not legal, tax or financial advice. Verify anything you rely on at the source (the IRS, the Maine tax and licensing agencies, and your local building department) or with a professional. Where Maine does something unusual, the detail is called out above rather than glossed over.
Related: Tax Set-Aside Calculator · Mechanic's Lien Deadline · Contractor License Checker · Small Claims checker · Working in Your State
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Sources
- Maine State Legislature · Mechanics lien notice, filing and enforcement deadlines in Maine: 10 M.R.S. 3253, 3255. Verified against this authority on 2026-08-15.
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