Live in Maine, Work Remotely for a Hawaii Employer: Who Taxes You?
Answer
Maine taxes the income and Hawaii cannot. Residency, not the location of the job, drives this answer: Maine reaches all of a resident's income, and Hawaii has no personal income tax to apply to the part earned inside its borders.
Last verified
The instinct that working in a no-tax state means paying no tax is the single most expensive misunderstanding in this niche. Hawaii takes nothing, but Maine still taxes residents on income earned anywhere, so the full amount lands on your Maine return.
What you file
- 1Resident return · Maine
File a Maine resident return reporting all of your income.
The two states, side by side
| Maine | Hawaii | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — graduated |
| Reciprocity partners | None | None |
| Convenience rule | No | No |
| Nonresident return | Form 1040ME with Schedule NR | Form N-15 |
| Credit for other-state tax | Form 1040ME Schedule A | Schedule CR |
| Nonresident safe harbour | 12 days or a dollar floor | None published |
| Local income tax | No | No |
| Revenue department | Maine Revenue Services | Hawaii Department of Taxation |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Hawaii and working in Maine gives:Home state only.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- W-2 commuter: Maine → HawaiiBoth states — credit offsets the double tax
- 1099 contractor: Maine → HawaiiHome state, plus the client state if you work there
- Moved mid-year: Maine → HawaiiTwo part-year returns
Other Maine pairs
Questions people actually ask
I live in Maine and work remotely for a Hawaii employer. Which state do I pay?
Maine taxes the income and Hawaii cannot. Residency, not the location of the job, drives this answer: Maine reaches all of a resident's income, and Hawaii has no personal income tax to apply to the part earned inside its borders.
Which state should my employer be withholding for?
Maine. Your employer should withhold Maine tax rather than Hawaii tax on these wages. If a Hawaii line is showing on your pay stub, raise it with payroll now rather than at filing time.
Does my Hawaii employer's location alone create a Hawaii tax obligation?
No. Hawaii sources wages to the place where the work is physically performed, and it does not apply a convenience-of-the-employer rule that would override that. Days you actually spend working inside Hawaii are a different matter — those are Hawaii-source income and can require a nonresident return.
How current is this?
The Maine and Hawaii rules on this page were last checked against Maine Revenue Services and Hawaii Department of Taxation on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- Maine Revenue Services — individual income taxaccessed 2026-08-07
- Hawaii Department of Taxation — individual income taxaccessed 2026-08-07