Maine Minimum Wage: Current Rate, Tipped Pay and Overtime
Maine minimum wage guide: the $15.70 rate for 2027, yearly inflation increases, the $7.85 tipped wage, overtime pay and city rates.
The Maine minimum wage is $15.70 an hour as of January 1, 2027, up from $15.10 in 2026. Maine adjusts the rate each year using the Northeast consumer price index for urban wage earners, so it rises with living costs. Tipped workers must earn a cash wage of at least $7.85 an hour, and employers must make up any shortfall if tips fall short. This guide explains the current rate, how the yearly increase works and what it means for full-time pay.
Key takeaways
- The Maine minimum wage is $15.70 an hour from January 1, 2027.
- The rate is indexed to inflation, so it changes every January without a new vote.
- The tipped cash wage is $7.85, which is 50% of the full minimum wage.
- A full-time worker at $15.70 earns about $628 a week, or $32,656 a year before tax.
- Portland and Rockland set their own higher local rates, so workers there should check the city rate.
Maine minimum wage history
Maine voters approved a path to a $12 hourly wage in 2016. After the schedule reached $12 in 2020, the state began adjusting the rate each year for inflation. Consequently, the Maine minimum wage has climbed steadily, and it now sits well above the federal floor of $7.25. The Department of Labor announces the new figure in the fall so employers have time to update payroll.
| Year | Maine minimum wage | Tipped cash wage |
|---|---|---|
| 2025 | $14.65 | $7.325 |
| 2026 | $15.10 | $7.55 |
| 2027 | $15.70 | $7.85 |
The table shows a rise of 60 cents between 2026 and 2027, which is about 4%. Because the rule follows the Northeast price index, a year with higher inflation produces a larger increase. See the minimum wage by state page to compare all fifty states.
How the Maine minimum wage is set each year
State law ties the Maine minimum wage to the percentage change in the Northeast Region consumer price index for urban wage earners and clerical workers. The labor commissioner calculates the change, rounds it to the nearest five cents and publishes the new rate. If prices fall, the rate does not drop. This automatic method means workers do not wait for the legislature to act, and employers can plan increases a year at a time.
Tipped workers and the Maine minimum wage
Maine allows employers to pay tipped workers a lower cash wage, but the rule is stricter than the federal one. For 2027, the cash wage is $7.85 an hour, which is half of the full rate. If tips do not bring a worker’s total to $15.70, the employer must pay the difference. Employers must also keep records of tips. Compared with the federal tipped cash wage of $2.13, the Maine minimum wage for tipped staff is much higher.
| Wage type | Hourly amount |
|---|---|
| Standard Maine minimum wage | $15.70 |
| Tipped cash wage | $7.85 |
| Maximum tip credit | $7.85 |
| Overtime at 1.5 times | $23.55 |
What the Maine minimum wage means for full-time pay
A full-time worker who works 40 hours a week earns $628 before tax at the Maine minimum wage. Over 52 weeks, that adds up to $32,656. A part-time worker with 20 hours earns $314 a week. These figures are before federal tax, Social Security and Medicare, and Maine income tax. Try your own numbers with the hourly to salary calculator.
Overtime and the Maine minimum wage
Maine requires overtime pay of 1.5 times the regular rate for hours beyond 40 in a workweek. At the minimum, that equals $23.55 an hour. Salaried workers may be exempt from overtime only if they meet the duties test and a salary threshold, which the state sets as a multiple of the minimum wage. Because the minimum wage rises each year, the threshold rises too. Use our overtime pay calculator to check a week’s pay.
Who is covered by the Maine minimum wage
The law covers most employees in the state, and farm workers have been covered since 2026. Maine has no youth subminimum wage, so teens and trainees are generally owed the full rate. A few narrow exceptions exist, such as certain seasonal camp staff, so employers should read the law for their type of business. Independent contractors are not covered, but misclassifying an employee as a contractor can lead to back pay.
Local rates in Portland and Rockland
Some cities set a local wage above the state floor. Portland and Rockland have adopted their own minimum wages, and those rates apply to work done inside the city. When a local rate is higher, employers must pay it. Check the city website for the current figure, because local rates can change on a different schedule from the state.
How the Maine minimum wage compares with other states
Maine now ranks among the higher-wage states in the East. Southern states such as Mississippi and Louisiana follow the federal floor, while Maine pays more than double. In the Midwest, Nebraska and New Mexico also pay above the federal rate. See the minimum wage in Florida guide for another state with scheduled increases.
Paycheck deductions at the minimum wage
Gross pay is not the amount that lands in a bank account. Federal income tax withholding depends on the Form W-4, Social Security takes 6.2% of wages and Medicare takes 1.45%. Maine also withholds state income tax, which is progressive and starts at a low rate. A worker earning the minimum for a full week would see about $48 go to Social Security and Medicare alone. Health premiums and retirement contributions reduce take-home pay further. For a clear picture of the difference between the two figures, read gross vs net income.
Many employees also ask about paid leave. Maine requires employers with more than a small number of staff to provide paid time off that workers can use for any reason. The rules include an accrual rate and a cap, so ask your employer for the policy in writing. This benefit adds real value on top of the hourly rate, even though it does not show up in the wage figure.
Tips for workers and employers
Workers should check each pay stub for the correct hourly rate in January. Keep a record of hours, since back pay claims depend on accurate records. Employers should update payroll before the first pay period of the year and post the current wage notice where staff can see it. If a worker believes they were underpaid, the Maine Department of Labor accepts complaints and can investigate. Equally important, review the Maine minimum wage each fall, when the new rate is announced.
This Maine minimum wage guide is for general information only and is not legal advice. Rates and rules change, so confirm current details with the Maine Department of Labor.
Frequently asked questions
What is the Maine minimum wage in 2027?
It is $15.70 an hour from January 1, 2027, up from $15.10 in 2026.
Does the Maine minimum wage change every year?
Yes. It is indexed to the Northeast consumer price index and adjusts each January.
What is the tipped minimum wage in Maine?
The tipped cash wage is $7.85 an hour in 2027, and employers must cover any shortfall.
How much is $15.70 an hour per year?
About $32,656 for a full-time worker at 2,080 hours before tax.
Are farm workers covered by the Maine minimum wage?
Yes. Agricultural workers have been covered since 2026.
Do Portland and Rockland have a higher minimum wage?
Yes. Both cities set local rates above the state level, so check the city rate.
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