Insurance Taxes

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 at the rate of 3% on the nonadmitted gross direct insurance premiums written on risks located or resident in the State. 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

    Insurance Tax Forms

    FAQ

    Insurance Taxes - FAQ

    Statutory Cites

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    Contact Information:

    P.O. Box 9107
    Augusta, ME 04332-9107

    Phone: 207-624-9753
    Fax: 207-624-9694