Live in Illinois, Work in Maine: Which State Taxes Your Paycheck?
Answer
You file twice: Maine first, then Illinois. There is no reciprocity agreement between these two states, so Maine taxes the income where it was earned and Illinois taxes it again as resident income — with the resident credit removing the double charge rather than an exemption form preventing it.
Last verified
Two states can lawfully tax the same wages: Maine because the work happened there, Illinois because you live there. Nothing prevents the overlap in advance — it is unwound afterwards, on the Illinois return, through the credit for taxes paid to another state.
A Illinois resident taxed by another state on the same income claims the credit for taxes paid to other states on Schedule CR. The credit is capped at the Illinois tax on that income, so it removes the double tax but never refunds the excess when the other state charges more.
What you file
- 1Nonresident return · MaineForm 1040ME with Schedule NR
File the Maine nonresident return FIRST — you need the Maine tax figure before you can complete Illinois.
- 2Resident return · IllinoisSchedule CR
File a Illinois resident return reporting all income, then claim the credit for tax paid to Maine. The credit is capped at what Illinois would have charged on that same income, so if Maine taxes it at a higher rate the difference is not refunded.
The two states, side by side
| Illinois | Maine | |
|---|---|---|
| Taxes wages | Yes — flat | Yes — graduated |
| Reciprocity partners | 4 (Form IL-W-5-NR) | None |
| Convenience rule | No | No |
| Nonresident return | Form IL-1040 with Schedule NR | Form 1040ME with Schedule NR |
| Credit for other-state tax | Schedule CR | Form 1040ME Schedule A |
| Nonresident safe harbour | 30 days | 12 days or a dollar floor |
| Local income tax | No | No |
| Revenue department | Illinois Department of Revenue | Maine Revenue Services |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Maine and working in Illinois gives:Both states — credit offsets the double tax.
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.
- Remote worker: Illinois → MaineHome state only
- 1099 contractor: Illinois → MaineHome state, plus the client state if you work there
- Moved mid-year: Illinois → MaineTwo part-year returns
Other Illinois pairs
Questions people actually ask
I live in Illinois and work in Maine. Which state takes the tax out of my paycheck?
You file twice: Maine first, then Illinois. There is no reciprocity agreement between these two states, so Maine taxes the income where it was earned and Illinois taxes it again as resident income — with the resident credit removing the double charge rather than an exemption form preventing it.
Which state should my employer be withholding for?
Maine. The wages are sourced to Maine, so Maine withholding is correct and there is no Illinois withholding to set up.
Will I end up paying tax twice on the same income?
Not twice over, but you will pay the higher of the two rates. Illinois gives residents a credit for tax paid to Maine on the same income, claimed on Schedule CR. The credit is capped at the Illinois tax on that income, so if Maine taxes it more heavily the excess is not refunded by either state.
How current is this?
The Illinois and Maine rules on this page were last checked against Illinois Department of Revenue and Maine Revenue Services 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.
- Illinois Department of Revenue — individual income taxaccessed 2026-08-07
- Maine Revenue Services — individual income taxaccessed 2026-08-07