Insurance Taxes FAQ

  1. Who should I contact if I have a question relating to insurance premiums, nonadmitted premiums, and fire investigation and prevention taxes: the Bureau of Insurance or Maine Revenue Services?
  2. When are insurance premiums, nonadmitted premiums, and fire investigation and prevention tax payments and returns due?
  3. Do I have to file an annual/reconciliation return even if there is no tax due?
  4. Is it permissible for insurance companies to charge their clients for the tax on premiums?

 

1. Who should I contact if I have a question relating to insurance premiums, nonadmitted premiums, and fire investigation and prevention taxes: the Bureau of Insurance or Maine Revenue Services?

Contact the Bureau of Insurance (207) 624-8475 if you have a question regarding licensing or examination.

Email InsuranceTax.MRS@maine.gov if you have a question regarding state taxes.

Revised: April 3, 2024

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2. When are insurance premiums, nonadmitted premiums, and fire investigation and prevention tax payments and returns due?

Annual reconciliation returns for all premiums taxes are due March 15th of the following calendar year.  Periodic estimated payments are due as follows:

For fire investigation and prevention premiums, monthly estimated tax payments must be paid, by the end of each month, equal to 1/12 of the total estimated tax due for the calendar year.

For insurance and nonadmitted (surplus) premiums with an annual tax obligation of $1,000 or less, the tax must be paid at the time the annual return is filed, but no later than March 15th of the following calendar year.  If the annual tax obligation is more than $1,000, three estimated payments must be paid as follows:

  • April 30th - 35% of the total tax paid for the preceding calendar year, or at least 35% of the total tax due for the current calendar year.
  • June 25th - 35% of the total tax paid for the preceding calendar year, or at least 35% of the total tax due for the current calendar year.
  • October 31st - 15% of the total tax paid for the preceding calendar year, or at least 15% of the total tax due for the current calendar year.

Except that for tax years beginning on or after January 1, 2024, nonadmitted insurance surplus lines producers, or the insured (in the case of self-procured policies), may elect to base estimated tax payment amounts on premiums and annuity considerations on contracts written by insurers during the estimated tax period of the current calendar. For more information, see Form INS-6.

Revised: April 9, 2024

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3. Do I have to file an annual/reconciliation return even if there is no tax due?

Every insurer that does business in Maine or collects premiums or assessments in Maine must file an annual premiums tax return, even if there is no tax obligation for the year.

Revised: February 28, 2014

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4. Is it permissible for insurance companies to charge their clients for the tax on premiums?

Yes.  Maine's insurance premiums tax is a tax on the insurer in lieu of paying income taxes.  Like any cost of doing business, the insurer may pass this cost on to its customers and may also separately state the amount of those taxes.  However, the insurer may not make a representation that the premiums tax is imposed on the insured or that the insured is in any way legally responsible to the State of Maine for the tax liability.

Revised: January 16, 2013

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