Live in Maine, Work Remotely for a Illinois Employer: Who Taxes You?
Answer
Only Maine taxes you. Illinois levies no personal income tax on wages, so nothing is withheld there and you file no Illinois return. Maine taxes its residents on all income wherever earned, which means your Illinois earnings go on a Maine resident return in full.
Last verified
The instinct that working in a no-tax state means paying no tax is the single most expensive misunderstanding in this niche. Illinois 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 | Illinois | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — flat |
| Reciprocity partners | None | 4 (Form IL-W-5-NR) |
| Convenience rule | No | No |
| Nonresident return | Form 1040ME with Schedule NR | Form IL-1040 with Schedule NR |
| Credit for other-state tax | Form 1040ME Schedule A | Schedule CR |
| Nonresident safe harbour | 12 days or a dollar floor | 30 days |
| Local income tax | No | No |
| Revenue department | Maine Revenue Services | Illinois Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Illinois 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 → IllinoisBoth states — credit offsets the double tax
- 1099 contractor: Maine → IllinoisHome state, plus the client state if you work there
- Moved mid-year: Maine → IllinoisTwo part-year returns
Other Maine pairs
Questions people actually ask
I live in Maine and work remotely for a Illinois employer. Which state do I pay?
Only Maine taxes you. Illinois levies no personal income tax on wages, so nothing is withheld there and you file no Illinois return. Maine taxes its residents on all income wherever earned, which means your Illinois earnings go on a Maine resident return in full.
Which state should my employer be withholding for?
Maine. Your employer should withhold Maine tax rather than Illinois tax on these wages. If a Illinois line is showing on your pay stub, raise it with payroll now rather than at filing time.
Does my Illinois employer's location alone create a Illinois tax obligation?
No. Illinois 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 Illinois are a different matter — those are Illinois-source income and can require a nonresident return.
How current is this?
The Maine and Illinois rules on this page were last checked against Maine Revenue Services and Illinois Department of Revenue 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
- Illinois Department of Revenue — individual income taxaccessed 2026-08-07