Insurance Premiums Tax
Except for captive insurance companies* and risk retention groups**, every insurer (insurance company, association, producer or attorney-in-fact of a reciprocal insurer) is subject to the Maine insurance premiums tax equal to 2% of all gross direct premiums. Generally, every insurer that does business in Maine or collects premiums or assessments including annuity considerations is required to file an annual premiums tax return even if there is no tax obligation for the year.
*Captive insurers are not subject to the insurance premiums tax; instead, they must file corporate income tax returns.
**Risk retention groups are not required to file estimated returns but must file an annual return.
For more information, see Maine Form INS-4.
Estimated tax payments must be made during the calendar year by April 30, June 25 and October 31. The April and June installments must each equal at least 35% of the total tax paid for the preceding calendar year or at least 35% of the total tax due for the current year. The October installment must equal 15% of the total tax paid for the preceding calendar year or 15% of the total tax due for the current year. For more information, see Maine Form INS-1.
Fire Investigation & Prevention Tax
Every fire insurance company or association that does business or collects premiums or assessments in Maine must pay a fire premiums tax equal to 1.4% of the gross direct premiums for fire risks written in the State, less the amount of all direct return premiums and all dividends paid to policyholders on direct fire premiums. See INS-5.
Monthly estimated tax payments equal to at least 1/12 of the estimated total tax for the current calendar year are required to be paid. For more information, see Maine Form INS-2.
Non-admitted (Surplus) Premiums Tax
Every licensed producer and self procured person/entity that has nonadmitted gross direct insurance premiums (surplus lines insurer) and does business or collects premiums in Maine, whether in cash or otherwise, must pay a surplus lines premiums tax on the nonadmitted gross direct insurance premiums written on risks located or resident in the State, as follows:
- For tax years beginning before January 1, 2023, the tax rate is 3% of the nonadmitted gross direct insurance premiums written on risks located or resident in the State.
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For tax years beginning on or after January 1, 2023, the tax rate is the greater of 3% and the highest tax rate that applies to nonadmitted insurance premiums in the state, district or possession of the United States, or province of Canada in which the insurer is incorporated. An insurance company incorporated in another country is deemed to be incorporated in the state, district or possession of the United States where it has elected to make its deposit and establish its principal agency in the United States.
For more information, see Maine Form INS-7.
Estimated tax payments must be made during the calendar year by April 30, June 25 and October 31. The April and June installments must each equal at least 35% of the total tax paid for the preceding calendar year or at least 35% of the total tax due for the current year. The October installment must equal 15% of the total tax paid for the preceding calendar year or 15% of the total tax due for the current year. For more information, see Maine Form INS-6.
Forms
FAQ
Statutory Cites
Contact Information:
P.O. Box 9107
Augusta, ME 04332-9107
Phone: 207-624-9753
Fax: 207-624-9694