Live in Maine, Work in Hawaii: Which State Taxes Your Paycheck?
Answer
You file twice: Hawaii first, then Maine. There is no reciprocity agreement between these two states, so Hawaii taxes the income where it was earned and Maine 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: Hawaii because the work happened there, Maine because you live there. Nothing prevents the overlap in advance — it is unwound afterwards, on the Maine return, through the credit for taxes paid to another state.
A Maine resident taxed by another state on the same income claims the credit for taxes paid to other states on Form 1040ME Schedule A. The credit is capped at the Maine 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 · HawaiiForm N-15
File the Hawaii nonresident return FIRST — you need the Hawaii tax figure before you can complete Maine.
- 2Resident return · MaineForm 1040ME Schedule A
File a Maine resident return reporting all income, then claim the credit for tax paid to Hawaii. The credit is capped at what Maine would have charged on that same income, so if Hawaii taxes it at a higher rate the difference is not refunded.
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: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: Maine → HawaiiHome state only
- 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 in Hawaii. Which state takes the tax out of my paycheck?
You file twice: Hawaii first, then Maine. There is no reciprocity agreement between these two states, so Hawaii taxes the income where it was earned and Maine 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?
Hawaii. The wages are sourced to Hawaii, so Hawaii withholding is correct and there is no Maine 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. Maine gives residents a credit for tax paid to Hawaii on the same income, claimed on Form 1040ME Schedule A. The credit is capped at the Maine tax on that income, so if Hawaii taxes it more heavily the excess is not refunded by either state.
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