ME LD106

Paid family and medical leave benefits are subject to Maine state income tax for taxable years beginning on or after January 1, 2026, to the extent not already included in federal adjusted gross income

Claimants may elect to have 5% state income tax withheld from their benefit payments at the time of filing

The Department of Labor must advise new claimants that benefits are taxable, estimated tax payment requirements exist, and they can elect or change withholding status

Taxpayers who repay previously received benefits may deduct the repaid amount from their adjusted gross income if those benefits were previously taxed by the state