Wealth-tax fever spreads to smaller states as Maine imposes 2% top-earner levy

Rhode Island and Colorado are heading to elections this fall, as noted in the article.

New York City Mayor Zohran Mamdani won his election on a platform to tax the rich.

Maine's new 2% surcharge on income over $1 million raises the top rate to 9.15% and is expected to raise about $150 million over two years. Part of the revenue will fund property tax relief and support a budget that includes free community college and housing investments.

The Washington state governor signed a similar 2% tax on income over $1 million into law, saying it was necessary to rebalance an unfair system.

Maine had one of the slowest growing GDPs in the nation in 2025, after several years of solid growth.

Revenue from the 4% wealth surtax increased to nearly $3 billion during the 2025 fiscal year, up from $2.46 billion a year earlier.

Massachusetts voters approved a 4% surtax on annual income over $1 million.