Severance Pay in Maine: Calculator & 2026 Guide
Calculate your estimated severance package in Maine. Maine state tax is 7.1%, for a combined 29.1% withholding rate.
Free Severance Pay Calculator
Estimate your severance package based on your salary, years of service, and industry
Maine Severance Pay Laws
Maine requires 1 week per year of service if you have 3+ years at the company and 100+ employees are affected.
How Severance Is Taxed in Maine
| Tax Type | Rate | On $50,000 Severance |
|---|---|---|
| Federal (Supplemental) | 22.0% | $11,000 |
| Maine State Tax | 7.1% | $3,575 |
| Total Withholding | 29.1% | $14,575 |
| You Keep | 70.9% | $35,425 |
Maine Severance by Industry
Example: 5 years of service, $75,000 salary, individual contributor in Maine
| Industry | Weeks/Year | Gross Estimate | After Tax |
|---|---|---|---|
| Technology | 2-4 | $21,635 | $15,328 |
| Finance & Banking | 2-4 | $21,635 | $15,328 |
| Healthcare | 1-3 | $14,423 | $10,219 |
| Retail | 0.5-2 | $7,212 | $5,109 |
| Manufacturing | 1-3 | $14,423 | $10,219 |
| Consulting & Professional Services | 2-4 | $21,635 | $15,328 |
| Government | 1-2 | $7,212 | $5,109 |
| Nonprofit | 1-2 | $10,817 | $7,664 |
| Other Industry | 1-3 | $14,423 | $10,219 |
How to Negotiate Severance in Maine
Maine mandates severance for qualifying mass layoffs. Check if your termination meets the 100+ employee threshold.
- ✓ Ask for more weeks: Counter with 50% more than the initial offer
- ✓ Negotiate COBRA: Employer-paid health coverage for 6-12 months
- ✓ Get a written reference: Protect your future career prospects
- ✓ Review non-compete clauses: Negotiate restrictions before signing
- ✓ Consult a lawyer: Employment attorneys often negotiate 2-5x the original offer
Think Your Severance Is Too Low?
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Maine Severance Pay FAQ
Is severance pay required in Maine?▼
Yes, Maine requires severance pay in certain circumstances, particularly during mass layoffs. Maine requires 1 week per year of service if you have 3+ years at the company and 100+ employees are affected.
How is severance taxed in Maine?▼
Severance in Maine is taxed at 29.1% combined — 22% federal supplemental rate plus 7.1% Maine state income tax. On a $50,000 severance, you'd take home approximately $35,425.
What is the WARN Act in Maine?▼
Maine has an enhanced WARN Act requiring 90 days advance notice (more than the federal 60 days) for layoffs affecting 100+ employees. Failure to provide proper notice can result in back pay for the notice period.
Can I collect unemployment and severance in Maine?▼
This depends on how your severance is structured. Some Maine workers can receive both simultaneously, while others may see a delay in unemployment benefits. If severance is paid as a lump sum, it's less likely to delay unemployment than if paid as continued salary. Contact Maine's unemployment office for specific guidance.
Severance Pay in Nearby States
📋 Free Severance Negotiation Checklist
The exact steps employment lawyers use to negotiate higher severance. Used by 10,000+ employees.