1 | State Corporate Income Tax Rates as of January 1, 2014 | |||
|---|---|---|---|---|
2 | State | Rates | Brackets (a) | |
3 | Ala. | 6.5% | > | $0 |
4 | Alaska | 0% | > | $0 |
5 | 2% | > | $25,000 | |
6 | 3% | > | $49,000 | |
7 | 4% | > | $74,000 | |
8 | 5% | > | $99,000 | |
9 | 6% | > | $124,000 | |
10 | 7% | > | $148,000 | |
11 | 8% | > | $173,000 | |
12 | 9% | > | $198,000 | |
13 | 9.4% | > | $222,000 | |
14 | Ariz. (a) | 6.5% | > | $0 |
15 | Ark. | 1% | > | $0 |
16 | 2% | > | $3,000 | |
17 | 3% | > | $6,000 | |
18 | 5% | > | $11,000 | |
19 | 6% | > | $25,000 | |
20 | 6.5% | > | $100,000 | |
21 | Calif. | 8.84% | > | $0 |
22 | Colo. | 4.63% | > | $0 |
23 | Conn. (b) | 9% | > | $0 |
24 | Del. (c) | 8.7% | > | $0 |
25 | Fla. | 5.5% | > | $0 |
26 | Ga. | 6% | > | $0 |
27 | Hawaii | 4.4% | > | $0 |
28 | 5.4% | > | $25,000 | |
29 | 6.4% | > | $100,000 | |
30 | Idaho | 7.4% | > | $0 |
31 | Ill. (d) | 9.5% | > | $0 |
32 | Ind. (e) | 7.5% | > | $0 |
33 | Iowa | 6% | > | $0 |
34 | 8% | > | $25,000 | |
35 | 10% | > | $100,000 | |
36 | 12% | > | $250,000 | |
37 | Kans. | 4% | > | $0 |
38 | 7% | > | $50,000 | |
39 | Ky. | 4% | > | $0 |
40 | 5% | > | $50,000 | |
41 | 6% | > | $100,000 | |
42 | La. | 4% | > | $0 |
43 | 5% | > | $25,000 | |
44 | 6% | > | $50,000 | |
45 | 7% | > | $100,000 | |
46 | 8% | > | $200,000 | |
47 | Maine | 3.5% | > | $0 |
48 | 7.93% | > | $25,000 | |
49 | 8.33% | > | $75,000 | |
50 | 8.93% | > | $250,000 | |
51 | Md. | 8.25% | > | $0 |
52 | Mass. | 8% | > | $0 |
53 | Mich. | 6% | > | $0 |
54 | Minn. | 9.8% | > | $0 |
55 | Miss. | 3% | > | $0 |
56 | 4% | > | $5,000 | |
57 | 5% | > | $10,000 | |
58 | Mo. | 6.25% | > | $0 |
59 | Mont. | 6.75% | > | $0 |
60 | Nebr. | 5.58% | > | $0 |
61 | 7.81% | > | $100,000 | |
62 | Nev. | None | ||
63 | N.H. | 8.5% | > | $0 |
64 | N.J. (f) | 9% | > | $100,000 |
65 | N.M. | 4.8% | > | $0 |
66 | 6.4% | > | $500,000 | |
67 | 7.3% | > | $1,000,000 | |
68 | N.Y. | 7.1% | > | $0 |
69 | N.C. | 6% | > | $0 |
70 | N.D. | 1.48% | > | $0 |
71 | 3.73% | > | $25,000 | |
72 | 4.53% | > | $50,000 | |
73 | Ohio (c) | |||
74 | Okla. | 6% | > | $0 |
75 | Ore. | 6.6% | > | $0 |
76 | 7.6% | > | $10,000,000 | |
77 | Pa. | 9.99% | > | $0 |
78 | R.I. | 9% | > | $0 |
79 | S.C. | 5% | > | $0 |
80 | S.D. | None | ||
81 | Tenn. | 6.5% | > | $0 |
82 | Tex. (c) | |||
83 | Utah | 5% | > | $0 |
84 | Vt. | 6% | > | $0 |
85 | 7% | > | $10,000 | |
86 | 8.5% | > | $25,000 | |
87 | Va. (c) | 6% | > | $0 |
88 | Wash. (c) | |||
89 | W. Va (g) | 6.5% | > | $0 |
90 | Wis. (e) | 7.9% | > | $0 |
91 | Wyo. | None | ||
92 | D.C. | 9.975% | > | $0 |
93 | (a) Arizona’s rate is scheduled to decrease to 6.5% in 2014. | |||
94 | b) Rate includes a 20% surtax, which effectively increases the rate from 7.5% to 9%. Surtax is required by businesses with at least $100 million annual gross income. | |||
95 | (c) Ohio, Texas, and Washington do not have a corporate income tax but do have a gross receipts tax with rates not strictly comparable to corporate income tax rates. See Table 21 for more information. Delaware and Virginia have a gross receipts tax in addition to the corporate income tax. | |||
96 | (d) Illinois’s rate includes two separate corporate income taxes, one at a 7% rate and one at a 2.5% rate. | |||
97 | (e) The tax rate in Indiana will decrease to 7.5% on July 1, 2013. | |||
98 | (f) Corporations with entire net income greater than $100,000 pay 9% on all taxable income, companies with entire net income greater than $50,000 and less than or equal to $100,000 pay 7.5% on all taxable income, and companies with entire net income less than or equal to $50,000 pay 6.5% on all taxable income. | |||
99 | (g) West Virginia’s rate is scheduled to decrease in 2014 subject to a reserve requirement. | |||
100 | Note: In addition to regular income taxes, many states impose other taxes on corporations such as gross receipts taxes and franchise taxes. Some states also impose an alternative minimum tax. Some states impose special rates on financial institutions. | |||
101 | Source: State tax statutes, forms, and instructions; Tax Foundation. | |||
1 | State Corporate Income Tax Rates as of January 1, 2013 | |||
|---|---|---|---|---|
2 | State | Rates | Brackets (a) | |
3 | Ala. | 6.5% | > | $0 |
4 | Alaska | 1.0% | > | $0 |
5 | 2.0% | > | $10,000 | |
6 | 3.0% | > | $20,000 | |
7 | 4.0% | > | $30,000 | |
8 | 5.0% | > | $40,000 | |
9 | 6.0% | > | $50,000 | |
10 | 7.0% | > | $60,000 | |
11 | 8.0% | > | $70,000 | |
12 | 9.0% | > | $80,000 | |
13 | 9.4% | > | $90,000 | |
14 | Ariz. (a) | 6.968% | > | $0 |
15 | Ark. | 1.0% | > | $0 |
16 | 2.0% | > | $3,000 | |
17 | 3.0% | > | $6,000 | |
18 | 5.0% | > | $11,000 | |
19 | 6.0% | > | $25,000 | |
20 | 6.5% | > | $100,000 | |
21 | Calif. | 8.84% | > | $0 |
22 | Colo. | 4.63% | > | $0 |
23 | Conn. (b) | 9.0% | > | $0 |
24 | Del. (c) | 8.7% | > | $0 |
25 | Fla. | 5.5% | > | $0 |
26 | Ga. | 6.0% | > | $0 |
27 | Hawaii | 4.4% | > | $0 |
28 | 5.4% | > | $25,000 | |
29 | 6.4% | > | $100,000 | |
30 | Idaho | 7.4% | > | $0 |
31 | Ill. (d) | 9.5% | > | $0 |
32 | Ind. (e) | 8.0% | > | $0 |
33 | Iowa | 6.0% | > | $0 |
34 | 8.0% | > | $25,000 | |
35 | 10.0% | > | $100,000 | |
36 | 12.0% | > | $250,000 | |
37 | Kans. | 4.0% | > | $0 |
38 | 7.0% | > | $50,000 | |
39 | Ky. | 4.0% | > | $0 |
40 | 5.0% | > | $50,000 | |
41 | 6.0% | > | $100,000 | |
42 | La. | 4.0% | > | $0 |
43 | 5.0% | > | $25,000 | |
44 | 6.0% | > | $50,000 | |
45 | 7.0% | > | $100,000 | |
46 | 8.0% | > | $200,000 | |
47 | Maine | 3.5% | > | $0 |
48 | 7.93% | > | $25,000 | |
49 | 8.33% | > | $75,000 | |
50 | 8.93% | > | $250,000 | |
51 | Md. | 8.25% | > | $0 |
52 | Mass. | 8.0% | > | $0 |
53 | Mich. | 6.0% | > | $0 |
54 | Minn. | 9.8% | > | $0 |
55 | Miss. | 3.0% | > | $0 |
56 | 4.0% | > | $5,000 | |
57 | 5.0% | > | $10,000 | |
58 | Mo. | 6.25% | > | $0 |
59 | Mont. | 6.75% | > | $0 |
60 | Nebr. | 5.58% | > | $0 |
61 | 7.81% | > | $100,000 | |
62 | Nev. | None | ||
63 | N.H. | 8.5% | > | $0 |
64 | N.J. (f) | 9.0% | > | $100,000 |
65 | N.M. | 4.8% | > | $0 |
66 | 6.4% | > | $500,000 | |
67 | 7.6% | > | $1,000,000 | |
68 | N.Y. | 7.1% | > | $0 |
69 | N.C. | 6.9% | > | $0 |
70 | N.D. | 1.68% | > | $0 |
71 | 4.23% | > | $25,000 | |
72 | 5.15% | > | $50,000 | |
73 | Ohio (c) | |||
74 | Okla. | 6.0% | > | $0 |
75 | Ore. | 6.6% | > | $0 |
76 | 7.6% | > | $10,000,000 | |
77 | Pa. | 9.99% | > | $0 |
78 | R.I. | 9.0% | > | $0 |
79 | S.C. | 5.0% | > | $0 |
80 | S.D. | None | ||
81 | Tenn. | 6.5% | > | $0 |
82 | Tex. (c) | |||
83 | Utah | 5.0% | > | $0 |
84 | Vt. | 6.0% | > | $0 |
85 | 7.0% | > | $10,000 | |
86 | 8.5% | > | $25,000 | |
87 | Va. (c) | 6.0% | > | $0 |
88 | Wash. (c) | |||
89 | W. Va (g) | 7.0% | > | $0 |
90 | Wis. (e) | 7.9% | > | $0 |
91 | Wyo. | None | ||
92 | D.C. | 9.975% | > | $0 |
93 | (a) Arizona’s rate is scheduled to decrease to 6.5% in 2014. | |||
94 | b) Rate includes a 20% surtax, which effectively increases the rate from 7.5% to 9%. Surtax is required by businesses with at least $100 million annual gross income. | |||
95 | (c) Ohio, Texas, and Washington do not have a corporate income tax but do have a gross receipts tax with rates not strictly comparable to corporate income tax rates. See Table 21 for more information. Delaware and Virginia have a gross receipts tax in addition to the corporate income tax. | |||
96 | (d) Illinois’s rate includes two separate corporate income taxes, one at a 7% rate and one at a 2.5% rate. | |||
97 | (e) The tax rate in Indiana will decrease to 7.5% on July 1, 2013. | |||
98 | (f) Corporations with entire net income greater than $100,000 pay 9% on all taxable income, companies with entire net income greater than $50,000 and less than or equal to $100,000 pay 7.5% on all taxable income, and companies with entire net income less than or equal to $50,000 pay 6.5% on all taxable income. | |||
99 | (g) West Virginia’s rate is scheduled to decrease in 2014 subject to a reserve requirement. | |||
100 | Note: In addition to regular income taxes, many states impose other taxes on corporations such as gross receipts taxes and franchise taxes. Some states also impose an alternative minimum tax. Some states impose special rates on financial institutions. | |||
101 | Source: State tax statutes, forms, and instructions; Tax Foundation. | |||
1 | State Corporate Income Tax Rates As of January 1, 2012 | |||
|---|---|---|---|---|
2 | State | Rates | Brackets | |
3 | Ala. | 6.5% | > | $0 |
4 | Alaska | 1% | > | $0 |
5 | 2% | > | $10,000 | |
6 | 3% | > | $20,000 | |
7 | 4% | > | $30,000 | |
8 | 5% | > | $40,000 | |
9 | 6% | > | $50,000 | |
10 | 7% | > | $60,000 | |
11 | 8% | > | $70,000 | |
12 | 9% | > | $80,000 | |
13 | 9.4% | > | $90,000 | |
14 | Ariz. | 6.968% | > | $0 |
15 | Ark. (a) | 1% | > | $0 |
16 | 2% | > | $3,000 | |
17 | 3% | > | $6,000 | |
18 | 5% | > | $11,000 | |
19 | 6% | > | $25,000 | |
20 | 6.5% | > | $100,000 | |
21 | Calif. | 8.84% | > | $0 |
22 | Colo. | 4.63% | > | $0 |
23 | Conn. (b) | 9% | > | $0 |
24 | Del. (c) | 8.7% | > | $0 |
25 | Fla. | 5.5% | > | $0 |
26 | Ga. | 6% | > | $0 |
27 | Hawaii | 4.4% | > | $0 |
28 | 5.4% | > | $25,000 | |
29 | 6.4% | > | $100,000 | |
30 | Idaho | 7.6% | > | $0 |
31 | Ill. (d) | 9.5% | > | $0 |
32 | Ind. (e) | 8.5% | > | $0 |
33 | Iowa | 6% | > | $0 |
34 | 8% | > | $25,000 | |
35 | 10% | > | $100,000 | |
36 | 12% | > | $250,000 | |
37 | Kans. | 4% | > | $0 |
38 | 7% | > | $50K | |
39 | Ky. | 4% | > | $0 |
40 | 5% | > | $50,000 | |
41 | 6% | > | $100,000 | |
42 | La. | 4% | > | $0 |
43 | 5% | > | $25,000 | |
44 | 6% | > | $50,000 | |
45 | 7% | > | $100,000 | |
46 | 8% | > | $200,000 | |
47 | Maine | 3.50% | > | $0 |
48 | 7.93% | > | $25,000 | |
49 | 8.33% | > | $75,000 | |
50 | 8.93% | > | $250,000 | |
51 | Md. | 8.25% | > | $0 |
52 | Mass. | 8.00% | > | $0 |
53 | Mich. | 6.00% | $0 | |
54 | Minn. | 9.8% | > | $0 |
55 | Miss. | 3% | > | $0 |
56 | 4% | > | $5,000 | |
57 | 5% | > | $10,000 | |
58 | Mo. | 6.25% | > | $0 |
59 | Mont. | 6.75% | > | $0 |
60 | Nebr. | 5.58% | > | $0 |
61 | 7.81% | > | $100,000 | |
62 | Nev. | None | ||
63 | N.H. | 8.5% | > | $0 |
64 | N.J. (f) | 9% | > | $100,000 |
65 | N.M. | 4.8% | > | $0 |
66 | 6.4% | > | $500,000 | |
67 | 7.6% | > | $1,000,000 | |
68 | N.Y. | 7.1% | > | $0 |
69 | N.C.(a) | 6.9% | > | $0 |
70 | N.D. | 1.7% | > | $0 |
71 | 4.23% | > | $25,000 | |
72 | 5.2% | > | $50,000 | |
73 | Ohio | (c) | ||
74 | Okla. | 6% | > | $0 |
75 | Ore. | 6.6% | > | $0 |
76 | 7.6% | > | $250,000 | |
77 | Pa. | 9.99% | > | $0 |
78 | R.I. | 9% | > | $0 |
79 | S.C. | 5% | > | $0 |
80 | S.D. | None | ||
81 | Tenn. | 6.5% | > | $0 |
82 | Tex. | (c) | ||
83 | Utah | 5% | > | $0 |
84 | Vt. | 6.0% | > | $0 |
85 | 7.0% | > | $10,000 | |
86 | 8.5% | > | $25,000 | |
87 | Va. (c) | 6% | > | $0 |
88 | Wash. | (c) | ||
89 | W.Va. | 7.75% | > | $0 |
90 | Wis. | 7.9% | > | $0 |
91 | Wyo. | None | ||
92 | D.C. | 9.975% | > | $0 |
93 | Note: In addition to regular income taxes, many states impose other taxes on corporations such as gross receipts taxes and franchise taxes. Some states also impose an alternative minimum tax. Some states impose special rates on financial institutions. | |||
94 | (a) North Carolina and Arkansas assess a surcharge of 3% of the taxpayer's total liability. | |||
95 | (b) Rate includes a 20% surtax, which effectively increases the rate from 7.5% to 9%. | |||
96 | (c) Ohio, Texas, and Washington do not have a corporate income tax but do have a gross receipts tax with rates not strictly comparable to corporate income tax rates. See Table 18 for more information. Delaware and Virginia have a gross receipts tax in addition to the corporate income tax. | |||
97 | (d) Illinois's rate includes two separate corporate income taxes, one at a 7% rate and one at a 2.5% rate. | |||
98 | (e) The tax rate in Indiana will decrease to 8% on July 1, 2012. | |||
99 | (f) Corporations with entire net income greater than $100K pay 9% on all taxable income, companies with entire net income greater than $50K and less than or equal to $100K pay 7.5% on all taxable income, and companies with entire net income less than or equal to $50K pay 6.5% on all taxable income. | |||
100 | Source: Tax Foundation; state tax forms and instructions. | |||
1 | State Corporate Income Tax Rates As of January 1st, 2011 | |||
|---|---|---|---|---|
2 | State | Rates | Brackets(a) | |
3 | Ala. | 6.5% | > | $0 |
4 | Alaska | 1.0% | > | $0 |
5 | 2.0% | > | $10,000 | |
6 | 3.0% | > | $20,000 | |
7 | 4.0% | > | $30,000 | |
8 | 5.0% | > | $40,000 | |
9 | 6.0% | > | $50,000 | |
10 | 7.0% | > | $60,000 | |
11 | 8.0% | > | $70,000 | |
12 | 9.0% | > | $80,000 | |
13 | 9.4% | > | $90,000 | |
14 | Ariz. | 6.968% | > | $0 |
15 | Ark. | 1.0% | > | $0 |
16 | 2.0% | > | $3,000 | |
17 | 3.0% | > | $6,000 | |
18 | 5.0% | > | $11,000 | |
19 | 6.0% | > | $25,000 | |
20 | 6.5% | > | $100,000 | |
21 | Calif. | 8.84% | > | $0 |
22 | Colo. | 4.63% | > | $0 |
23 | Conn. | 7.5% | > | $0 |
24 | Del. (a) | 8.7% | > | $0 |
25 | Fla. | 5.5% | > | $0 |
26 | Ga. | 6.0% | > | $0 |
27 | Hawaii | 4.4% | > | $0 |
28 | 5.4% | > | $25,000 | |
29 | 6.4% | > | $100,000 | |
30 | Idaho | 7.6% | > | $0 |
31 | Ill. (c) | 9.5% | > | $0 |
32 | Ind. | 8.5% | > | $0 |
33 | Iowa | 6.0% | > | $0 |
34 | 8.0% | > | $25,000 | |
35 | 10.0% | > | $100,000 | |
36 | 12.0% | > | $250,000 | |
37 | Kans. | 4.0% | > | $0 |
38 | 7.0% | > | $50,000 | |
39 | Ky. | 4.0% | > | $0 |
40 | 5.0% | > | $50,000 | |
41 | 6.0% | > | $100,000 | |
42 | La. | 4.0% | > | $0 |
43 | 5.0% | > | $25,000 | |
44 | 6.0% | > | $50,000 | |
45 | 7.0% | > | $100,000 | |
46 | 8.0% | > | $200,000 | |
47 | Maine | 3.5% | > | $0 |
48 | 7.93% | > | $25,000 | |
49 | 8.33% | > | $75,000 | |
50 | 8.93% | > | $250,000 | |
51 | Md. | 8.25% | > | $0 |
52 | Mass. | 8.25% | > | $0 |
53 | Mich. (a) | |||
54 | Minn. | 9.8% | > | $0 |
55 | Miss. | 3.0% | > | $0 |
56 | 4.0% | > | $5,000 | |
57 | 5.0% | > | $10,000 | |
58 | Mo. | 6.25% | > | $0 |
59 | Mont. | 6.75% | > | $0 |
60 | Nebr. | 5.58% | > | $0 |
61 | 7.81% | > | $100,000 | |
62 | Nev. | None | ||
63 | N.H. (a) | 8.5% | > | $0 |
64 | N.J. (b) | 9.0% | > | $100,000 |
65 | N.M. | 4.8% | > | $0 |
66 | 6.4% | > | $500,000 | |
67 | 7.6% | > | $1,000,000 | |
68 | N.Y. | 7.1% | > | $0 |
69 | N.C. | 6.9% | > | $0 |
70 | N.D. | 2.1% | > | $0 |
71 | 5.25% | > | $25,000 | |
72 | 6.4% | > | $50,000 | |
73 | Ohio (a) | |||
74 | Okla. | 6.0% | > | $0 |
75 | Ore. | 6.6% | > | $0 |
76 | 7.6% | > | $250K | |
77 | Pa. | 9.99% | > | $0 |
78 | R.I. | 9.0% | > | $0 |
79 | S.C. | 5.0% | > | $0 |
80 | S.D. | None | ||
81 | Tenn. | 6.5% | > | $0 |
82 | Tex. (a) | |||
83 | Utah | 5.0% | > | $0 |
84 | Vt. 6% | 6.0% | > | $0 |
85 | 7.0% | > | $10K | |
86 | 8.5% | > | $25K | |
87 | Va. (a) | 6.0% | > | $0 |
88 | Wash. (a) | None | ||
89 | W.Va. | 8.5% | > | $0 |
90 | Wis. | 7.9% | > | $0 |
91 | Wyo. | None | ||
92 | D.C. | 9.975% | > | $0 |
93 | Note: In addition to regular income taxes, many states impose other taxes on corporations such as gross receipts taxes and franchise taxes. Some states also impose an alternative minimum tax. | |||
94 | (a) Michigan, Ohio, Texas, and Washington do not have a corporate income tax but do have a gross receipts tax with rates not strictly comparable to corporate income tax rates. See Table 18 for more information. Delaware, New Hampshire, and Virginia have a gross receipts tax in addition to the corporate income tax. | |||
95 | (b) Businesses with entire net income greater than $100K pay 9% on all taxable income, companies with entire net income greater than $50K and less than or equal to $100K pay 7.5% on all taxable income, and companies with entire net income less than or equal to $50K pay 6.5% on all taxable income. | |||
96 | (c) On January 12, 2011, Illinois increased its corporate income tax from 7.3% to 9.5%, retroactive to January 1, 2011. Illinois’s rate includes two separate corporate income taxes, one at a 7% rate and one at a 2.5% rate. | |||
97 | Source: Tax Foundation; state tax forms and instructions. | |||
1 | State Corporate Income Tax Rates, As of February 1st, 2010 | |||
|---|---|---|---|---|
2 | State | Rates (a) | Brackets | |
3 | Ala. | 6.5% | > | $0 |
4 | ||||
5 | Alaska | 1% | > | $0 |
6 | 2% | > | $10K | |
7 | 3% | > | $20K | |
8 | 4% | > | $30K | |
9 | 5% | > | $40K | |
10 | 6% | > | $50K | |
11 | 7% | > | $60K | |
12 | 8% | > | $70K | |
13 | 9% | > | $80K | |
14 | 9.4% | > | $90K | |
15 | ||||
16 | Ariz. | 6.968% | > | $0 |
17 | ||||
18 | Ark. | 1% | > | $0 |
19 | 2% | > | $3K | |
20 | 3% | > | $6K | |
21 | 5% | > | $11K | |
22 | 6% | > | $25K | |
23 | 6.5% | > | $100K | |
24 | ||||
25 | Calif. | 8.84% | > | $0 |
26 | ||||
27 | Colo. | 4.63% | > | $0 |
28 | ||||
29 | Conn. | 7.5% | > | $0 |
30 | ||||
31 | Del. | 8.7% | > | $0 |
32 | ||||
33 | Fla. | 5.5% | > | $0 |
34 | ||||
35 | Ga. | 6% | > | $0 |
36 | ||||
37 | Hawaii | 4.4% | > | $0 |
38 | 5.4% | > | $25K | |
39 | 6.4% | > | $100K | |
40 | ||||
41 | Idaho | 7.6% | > | $0 |
42 | ||||
43 | Ill. | 7.3% | > | $0 |
44 | ||||
45 | Ind. | 8.5% | > | $0 |
46 | ||||
47 | Iowa | 6% | > | $0 |
48 | 8% | > | $25K | |
49 | 10% | > | $100K | |
50 | 12% | > | $250K | |
51 | ||||
52 | Kans. | 4% | > | $0 |
53 | 7.05% | > | $50K | |
54 | ||||
55 | Ky. | 4% | > | $0 |
56 | 5% | > | $50K | |
57 | 6% | > | $100K | |
58 | ||||
59 | La. | 4% | > | $0 |
60 | 5% | > | $25K | |
61 | 6% | > | $50K | |
62 | 7% | > | $100K | |
63 | 8% | > | $200K | |
64 | ||||
65 | Maine | 3.5% | > | $0 |
66 | 7.93% | > | $25K | |
67 | 8.33% | > | $75K | |
68 | 8.93% | > | $250K | |
69 | ||||
70 | Md. | 8.25% | > | $0 |
71 | ||||
72 | Mass. | 8.8% | > | $0 |
73 | ||||
74 | Mich. (b) | 4.95% | > | $0 |
75 | ||||
76 | Minn. | 9.8% | > | $0 |
77 | ||||
78 | Miss. | 3% | > | $0 |
79 | 4% | > | $5K | |
80 | 5% | > | $10K | |
81 | ||||
82 | Mo. | 6.25% | > | $0 |
83 | ||||
84 | Mont. | 6.75% | > | $0 |
85 | ||||
86 | Nebr. | 5.58% | > | $0 |
87 | 7.81% | > | $100K | |
88 | ||||
89 | Nev. | None | ||
90 | ||||
91 | N.H. | 8.5% | > | $0 |
92 | ||||
93 | N.J. (c) | 9% | > | $100K |
94 | ||||
95 | N.M. | 4.8% | > | $0 |
96 | 6.4% | > | $500K | |
97 | 7.6% | > | $1M | |
98 | ||||
99 | N.Y. | 7.1% | > | $0 |
100 | ||||
101 | N.C. | 6.9% | > | $0 |
102 | ||||
103 | N.D. | 2.1% | > | $0 |
104 | 5.3% | > | $25K | |
105 | 6.4% | > | $50K | |
106 | ||||
107 | Ohio (d) | 0.26% | > | $0 |
108 | ||||
109 | Okla. | 6% | > | $0 |
110 | ||||
111 | Ore. (e) | 6.6% | > | $0 |
112 | 7.9% | > | $250K | |
113 | ||||
114 | Pa. | 9.99% | > | $0 |
115 | ||||
116 | R.I. | 9% | > | $0 |
117 | ||||
118 | S.C. | 5% | > | $0 |
119 | ||||
120 | S.D. | None | ||
121 | ||||
122 | Tenn. | 6.5% | > | $0 |
123 | ||||
124 | Tex. | None | ||
125 | ||||
126 | Utah | 5% | > | $0 |
127 | ||||
128 | Vt. | 6% | > | $0 |
129 | 7% | > | $10K | |
130 | 8.5% | > | $25K | |
131 | ||||
132 | Va. | 6% | > | $0 |
133 | ||||
134 | Wash. | None | ||
135 | ||||
136 | W.Va. | 8.5% | > | $0 |
137 | ||||
138 | Wis. | 7.9% | > | $0 |
139 | ||||
140 | Wyo. | None | ||
141 | ||||
142 | D.C. | 9.975% | > | $0 |
143 | ||||
144 | (a) In addition to regular income taxes, many states impose other taxes on corporations such as gross receipts taxes and franchise taxes. Some states also impose an alternative minimum tax. | |||
145 | (b) There is an additional surcharge equal to the lesser of 21.99% of tax liability or $6,000,000 and an .8% gross reciepts tax. | |||
146 | (c) Businesses with entire net income greater than $100K pay 9% on all taxable income, companies with entire net income greater than $50K and less than or equal to $100K pay 7.5% on all taxable income, and companies with entire net income less than or equal to $50K pay 6.5% on all taxable income. | |||
147 | (d) A tax on gross receipts, the commercial activity tax (CAT), was phased in from 2005 to 2009 while the corporate franchise tax (CFT, Ohio's corporate net income tax) was phased out. Beginning April 1, 2009, the CAT rate was fully phased in at 0.26%. For tax year 2009, companies owe 20% of CFT liability. For tax year 2010 and thereafter, the CFT is fully phased out. | |||
148 | (e) The top income tax rate (7.9% on income over $250,000) applies to tax years beginning on or after January 1, 2009, and before January 1, 2011. | |||
1 | State Corporate Income Tax Rates As of July 1, 2009 | ||
|---|---|---|---|
2 | State | Tax Rates and Brackets | Special Rates or Notes |
3 | Alabama | 6.5% | Federal deductibility |
4 | Alaska | 1.0% > $0 | 4.5% alternative tax rate on capital gains. Alternative minimum tax equal to 18% of federal alternative minimum tax. |
5 | 2.0 > 10K | ||
6 | 3.0 > 20K | ||
7 | 4.0 > 30K | ||
8 | 5.0 > 40K | ||
9 | 6.0 > 50K | ||
10 | 7.0 > 60K | ||
11 | 8.0 > 70K | ||
12 | 9.0 > 80K | ||
13 | 9.4 > 90K | ||
14 | Arizona | 6.968% | Minimum tax is $50. |
15 | Arkansas | 1.0% > $0 | |
16 | 2.0 > 3K | ||
17 | 3.0 > 6K | ||
18 | 5.0 > 11K | ||
19 | 6.0 > 25K | ||
20 | 6.5 > 100K | ||
21 | California | 8.84% | Minimum tax is $800. 10.84% on financial institutions. The tax rate on S-Corporations is 1.5% (3.5% for financial S-Corporations). A 6.65% AMT is also imposed. |
22 | |||
23 | |||
24 | Colorado | 4.63% | |
25 | Connecticut | 7.5% | Pay higher of income tax or tax on capital (3.1 mills per dollar, with a minimum of $250 and a maximum of $1,000,000). |
26 | |||
27 | |||
28 | Delaware | 8.7% | Banking tax: 8.7% on first $20 million, 6.7% for next $5 million, 4.7% for next $5 million, 2.7% for next $620 million, and 1.7% for amounts greater than $650 million. A franchise tax is due on the greater of the tax calculated on authorized shares or gross assets ($35 minimum, $165,000 maximum). Delaware also levies a business and occupational gross receipts tax; rates range from 0.104% to 2.07%, depending on the business activity. |
29 | |||
30 | |||
31 | |||
32 | |||
33 | |||
34 | |||
35 | Florida | 5.5% | Taxpayers who owe federal AMT must pay higher of FL corporate income tax or 3.3% alternative minimum rate. |
36 | |||
37 | |||
38 | Georgia | 6.0% | Financial institutions, 0.25% of Georgia gross receipts. |
39 | Hawaii | 4.4% > $0 | Banks and financial institutions are taxed at 7.92%. An alternative tax rate on capital gains is imposed at a rate of 4%. |
40 | 5.4 > 25K | ||
41 | 6.4 > 100K | ||
42 | Idaho | 7.6% | Minimum tax $20. |
43 | Illinois | 7.3% | Includes 2.5% income replacement tax. S-Corporations pay only a 1.5% replacement tax. |
44 | |||
45 | Indiana | 8.5% | |
46 | Iowa | 6.0% > $0 | 50% federal deductibility. 7.2% alternative minimum tax. Financial institutions are subject to a 5% franchise tax. |
47 | 8.0 > 25K | ||
48 | 10.0 > 100K | ||
49 | 12.0 > 250K | ||
50 | Kansas | 4.0% > $0 | The top rate is a result of a 3.1% surtax on income over $50,000. Corporate Franchise tax of 0.09375% in 2008; 0.0625% in 2009; and 0.03125% in 2010 on total net worth for entities of $1,000,000 or more. Banking Privilege tax is 2.25% of total net income plus 2.125% surtax on taxable income over $25,000. |
51 | 7.05 > 50K | ||
52 | |||
53 | |||
54 | |||
55 | |||
56 | |||
57 | |||
58 | Kentucky | 4.0% > $0 | Corporations must also pay the Limited Liability Entity Tax, which is the lesser of 0.095% of gross receipts or 0.75% of gross profits. The tax phases in between $3 million and $6 million of gross receipts or profits. Minimum tax $175. |
59 | 5.0 > 50K | ||
60 | 6.0 > 100K | ||
61 | |||
62 | |||
63 | |||
64 | Louisiana | 4.0% > $0 | Federal deductibility. Corporation franchise tax: $1.50 for each $1000 up to $300,000 of capital employed in LA; and $3 for each $1000 over $300,000 ($10 minimum). |
65 | 5.0 > 25K | ||
66 | 6.0 > 50K | ||
67 | 7.0 > 100K | ||
68 | 8.0 > 200K | ||
69 | Maine | 3.5% > $0 | An AMT is imposed at 5.4%. Banks and financial institutions choose to pay either 1% of income plus 0.008% of assets, or 0.039% of assets only. |
70 | 7.93 > 25K | ||
71 | 8.33 > 75K | ||
72 | 8.93 > 250K | ||
73 | Maryland | 8.25% | |
74 | Massachusetts | 9.5% | There is an additional tax of $2.60 per $1,000 on taxable tangible property (or net worth allocable to the state, for intangible property corporations); minimum tax of $456. 10.5% on financial institutions. |
75 | |||
76 | |||
77 | |||
78 | |||
79 | Michigan | 4.95% | There is an additional modified gross receipts tax (sales minus purchases from other firms) at a rate of 0.8%. The income and gross receipts taxes are subject to a 21.99% surtax on the calculated liability, with the maximum surtax being $6 million. Banks pay a tax on net worth at a rate of 0.235%. |
80 | |||
81 | |||
82 | |||
83 | |||
84 | |||
85 | |||
86 | |||
87 | Minnesota | 9.8% | 5.8% alternative minimum tax rate. A minimum tax ranging from $0 to $5000 is levied based on Minnesota property, payroll and sales. |
88 | |||
89 | |||
90 | Mississippi | 3.0% > $0 | Franchise tax of $2.50 per $1,000 of taxable capital, with a minimum tax of $25 |
91 | 4.0 > 5K | ||
92 | 5.0 >10K | ||
93 | Missouri | 6.25% | Additional franchise tax at 0.0333% of taxable capital. Financial institutions pay a 7% net income tax. 50% of federal tax deductible. |
94 | |||
95 | |||
96 | Montana | 6.75% | 7% for corporations filing under a water's edge election. Minimum tax is $50. |
97 | |||
98 | Nebraska | 5.58% > $0 | Financial institutions, lesser of 0.047% of average deposits or 3.81% of net income before taxes and extraordinary items. |
99 | 7.81 > 100K | ||
100 | |||
101 | Nevada | None | |
102 | New Hampshire | 8.5% | NH has two corporate taxes: the Business Profits Tax (BPT) and the Business Enterprise Tax (BET). The BPT rate is 8.5% of income for corporations with gross receipts over $50K. The BET rate is 0.75% on the enterprise value tax base (total compensation paid out, including dividends and interest). The BET is assessed on corporations with gross receipts over $150K or an enterprise value tax base over $75K. |
103 | |||
104 | |||
105 | |||
106 | |||
107 | |||
108 | |||
109 | |||
110 | |||
111 | |||
112 | New Jersey | 6.5% > $0 | Companies with income greater than $100K pay 9% on all income, companies with income greater than $50K but less than $100K pay 7.5 % on all income and companies with income under $50K pay 6.5%. The minimum tax is $500. An Alternative Minimum Assessment based on gross receipts or profits applies if greater than corporate franchise tax. 4% surtax applied to tax liability for 2008 and 2009. Banking and financial institutions are subject to the income tax. |
113 | 7.5 > 50K | ||
114 | 9.0 > 100K | ||
115 | |||
116 | |||
117 | |||
118 | |||
119 | |||
120 | |||
121 | |||
122 | |||
123 | New Mexico | 4.8% > $0 | |
124 | 6.4 > 500K | ||
125 | 7.6 > 1,000,000 | ||
126 | New York | 7.1% | Businesses pay greatest of regular income tax, 1.5% AMT, 0.178% of capital base, or a fixed dollar minimum tax between $100 and $1500. There is an additional 0.09% tax on subsidiary capital. Some banking corporations are subject to a tax of 7.5% of entire net income, or an alternative tax on net income or assets. A surcharge of 17% of the computed tax is imposed on business activity within the Metropolitan Commuter Transportation District. |
127 | |||
128 | |||
129 | |||
130 | |||
131 | |||
132 | |||
133 | |||
134 | |||
135 | |||
136 | North Carolina | 6.9% | The franchise tax rate is $1.50 per $1,000 and is applied to the greatest of three different tax bases, with a minimum of $35. |
137 | |||
138 | |||
139 | North Dakota | 2.6% > $0 | 7% for financial institutions, with a minimum of $50. Corporations making a water's-edge election must pay an additional 3.5% tax. |
140 | 4.1 > 3K | ||
141 | 5.6 > 8K | ||
142 | 6.4 > 20K | ||
143 | 6.5 > 30K | ||
144 | Ohio | 0.26% > $0 | A tax on gross receipts, the commercial activity tax (CAT), was instituted in 2005. It will be phased in through 2010 while the corporate franchise tax (Ohio's corporate net income tax) is phased out. From April 2008 through March 2009, the CAT rate is 0.208%. Beginning April 1, 2009 the CAT rate is fully phased in and equals 0.26%. For tax year 2009 companies owe 20% of Corporate Franchise Tax liability. For Tax Year 2010 and thereafter the Corporate Franchise Tax is fully phased out. |
145 | |||
146 | |||
147 | |||
148 | |||
149 | |||
150 | |||
151 | |||
152 | |||
153 | |||
154 | |||
155 | |||
156 | Oklahoma | 6.0% | Additional franchise tax of $1.25 for each $1,000 of capital invested or used in Oklahoma. |
157 | |||
158 | |||
159 | Oregon | 6.6% | Minimum tax $10. Financial institutions are subject to the income tax. The top income tax rate (7.9% on income over $250,000) applies to tax years beginning on or after January 1, 2009, and before January 1, 2011. |
160 | 7.9% > $250K | ||
161 | Pennsylvania | 9.99% | Imposes a capital stock and foreign franchise tax of 0.189% on taxable income over $125K. Bank and Trust Company Shares Tax is 1.25%. |
162 | |||
163 | |||
164 | |||
165 | Rhode Island | 9.0% | Greater of 9% of net income apportioned to Rhode Island or a franchise tax on authorized capital stock at the rate of $2.50 for each $10,000.00 or fractional part thereof (minimum of $500). |
166 | |||
167 | |||
168 | |||
169 | South Carolina | 5.0% | 4.5% for banks; 6% for savings and loans. |
170 | South Dakota | None | Banks pay 6% on net income. Minimum tax is $200 per location. |
171 | |||
172 | Tennessee | 6.5% | Franchise tax of 0.25% of the greater of net worth or real and tangible property (minimum $100) |
173 | Texas | None | Texas has a 1% franchise tax which is a gross receipts tax paid by most taxable entities. Qualified entities with $10 million or less in total revenue pay 0.575%. Qualifying retailers and wholesalers pay 0.5%. Taxable entities with total revenue of $300,000 or less will owe no tax. Taxable entities with tax due of less than $1,000 will owe no tax. |
174 | |||
175 | |||
176 | |||
177 | |||
178 | |||
179 | |||
180 | |||
181 | Utah | 5.0% | Minimum tax $100. |
182 | Vermont | 6.0% > $0 | Minimum tax $250. |
183 | 7.0 > 10k | ||
184 | 8.5 > 25k | ||
185 | Virginia | 6.0% | Bank franchise tax is 1.0% of net capital. |
186 | |||
187 | Washington | None | Washington has no income tax but has a gross receipts tax called the Business & Occupation (B&O) Tax which is levied at various rates. The major rates are 0.471% for retail sales, 0.484% for wholesale and manufacturing, and 1.5% for service and other activities. |
188 | |||
189 | |||
190 | |||
191 | |||
192 | |||
193 | West Virginia | 8.5% | Business franchise tax of 0.55% of taxable capital (minimum of $50). |
194 | |||
195 | Wisconsin | 7.9% | |
196 | Wyoming | None | |
197 | District of Columbia | 9.975% | Minimum tax is $100. DC's Ballpark Fee is levied on gross receipts over $5 million at varying rates. |
198 | |||
199 | |||
200 | |||
201 | Sources: Tax Foundation and each state's tax forms and instructions. | ||
1 | State Corporate Income Tax Rates As of January 1, 2008 | ||
|---|---|---|---|
2 | State | Tax Rates and Brackets | Special Rates or Notes |
3 | Alabama | 6.5% | Federal deductibility |
4 | Alaska | 1.0% > $0 | |
5 | 2.0 > 10K | ||
6 | 3.0 > 20K | ||
7 | 4.0 > 30K | ||
8 | 5.0 > 40K | ||
9 | 6.0 > 50K | ||
10 | 7.0 > 60K | ||
11 | 8.0 > 70K | ||
12 | 9.0 > 80K | ||
13 | 9.4 > 90K | ||
14 | Arizona | 6.968% | Minimum tax is $50. |
15 | Arkansas | 1.0% > $0 | |
16 | 2.0 > 3K | ||
17 | 3.0 > 6K | ||
18 | 5.0 > 11K | ||
19 | 6.0 > 25K | ||
20 | 6.5 > 100K | ||
21 | California | 8.84% | Minimum tax is $800. 10.84% on financial institutions. The tax rate on S-Corporations is 1.5% (3.5% for financial S-Corporations). A 6.65% AMT is also imposed. |
22 | |||
23 | |||
24 | Colorado | 4.63% | |
25 | Connecticut | 7.5% | Pay higher of income tax or tax on capital (3.1 mills per dollar, with a minimum of $250 and a maximum of $1,000,000). |
26 | |||
27 | |||
28 | Delaware | 8.7% | Banking tax: 8.7% on first $20 million, 6.7% for next $5 million, 4.7% for next $5 million, 2.7% for next $620 million, and 1.7% for amounts greater than $650 million. A franchise tax is due on the greater of the tax calculated on authorized shares or gross assets ($35 minimum, $165,000 maximum). |
29 | |||
30 | |||
31 | |||
32 | Florida | 5.5% | Taxpayers who owe federal AMT must pay higher of FL Corp. Inc. Tax or 3.3% alternative minimum rate. |
33 | |||
34 | |||
35 | Georgia | 6% | |
36 | Hawaii | 4.4%> $0 | Banks and financial institutions are taxed at 7.92%. An alternative tax on capital gains is imposed at a rate of 4%. |
37 | 5.4 > 25K | ||
38 | 6.4 > 100K | ||
39 | Idaho | 7.6% | Minimum tax $20. |
40 | Illinois | 7.3% | Includes 2.5% income replacement tax. 1.5% for S-Corps. |
41 | |||
42 | Indiana | 8.5% | |
43 | Iowa | 6.0% > $0 | 50% federal deductibility. Financial institutions are subject to a 5% franchise tax. |
44 | 8.0 > 25K | ||
45 | 10.0 > 100K | ||
46 | 12.0 > 250K | ||
47 | Kansas | 4% > $0 | |
48 | 7.35 > 50K | ||
49 | Kentucky | 4.% > $0 | Corporations must also pay the larger of a gross receipts tax equal to 0.095% of gross sales or 0.75% of gross profits, or a minimum tax of $175. |
50 | 5.0 > 50K | ||
51 | 6.0 > 100K | ||
52 | |||
53 | Louisiana | 4.0% > $0 | Federal deductibility. Corporation franchise tax: $1.50 for each $1000 up to $300,000 of capital employed in LA; and $3 for each $1000 over $300,000. |
54 | 5.0 > 25K | ||
55 | 6.0 > 50K | ||
56 | 7.0 > 100K | ||
57 | 8.0 > 200K | ||
58 | Maine | 3.5% > $0 | An AMT is imposed at 5.4%. Banks and financial institutions must choose to pay either 1% of income plus 0.008% of assets, or 0.039% of assets only. |
59 | 7.93 > 25K | ||
60 | 8.33 > 75K | ||
61 | 8.93 > 250K | ||
62 | Maryland | 8.25% | |
63 | Massachusetts | 9.50% | There is an additional tax of $2.60 per $1,000 on taxable tangible property (or net worth allocable to state, for intangible property corporations); minimum tax of $456. 10.5% on financial institutions. |
64 | |||
65 | |||
66 | |||
67 | |||
68 | Michigan | 4.95% | There is an additional modified gross receipts tax (sales minus purchases from other firms) at a rate of 0.8%. Banks pay a tax on net worth at a rate of 0.235%. |
69 | |||
70 | |||
71 | |||
72 | |||
73 | |||
74 | Minnesota | 9.8% | 5.8% alternative minimum tax rate. A minimum tax is levied based on Minnesota property, payroll and sales. |
75 | |||
76 | |||
77 | |||
78 | Mississippi | 3.0% > $0 | Franchise tax of $2.50 per $1,000 with minimum tax of $25 |
79 | 4.0 > 5K | ||
80 | 5.0 >10K | ||
81 | Missouri | 6.25% | Additional franchise tax at 0.0333%. 7% on financial institutions. 50% of federal tax deductible. |
82 | |||
83 | |||
84 | Montana | 6.75% | 7% for corporations filing under a water's edge election. Minimum tax is $50. |
85 | |||
86 | Nebraska | 5.58% > $0 | |
87 | 7.81 > 50K | ||
88 | Nevada | None | |
89 | New Hampshire | 8.5% > $50K | Its two corporate taxes – the Business Profits Tax (BPT) and the Business Enterprise Tax (BET) – have different rates and bases. The BPT rate is 8.5% on gross income over $50K. The BET rate is either 0.75% on gross income over $150K, or 0.75% on total compensation paid out, including dividends and interest, over $75K, making 9.25% the top rate a corporation may face. |
90 | 9.25 > 150K | ||
91 | |||
92 | |||
93 | |||
94 | |||
95 | |||
96 | |||
97 | New Jersey | 6.5% > $0 | Companies with income greater than $100K pay 9% on all income, companies with income greater than $50K but less than $100K pay 7.5 % on all income and companies with income under $50K pay 6.5%. The minimum tax is $500. An Alternative Minimum Assessment based on Gross Receipts applies if greater than corporate franchise tax for out-of-state companies with New Jersey sales. 4% surtax for 2007. |
98 | 7.5 > 50K | ||
99 | 9.0 > 100K | ||
100 | |||
101 | |||
102 | |||
103 | |||
104 | |||
105 | |||
106 | |||
107 | New Mexico | 4.8% > $0 | |
108 | 6.4 > 500K | ||
109 | 7.6 > 1,000,000 | ||
110 | New York | 7.1% | Businesses pay greatest of regular income tax, 1.5% AMT, 0.178% of capital base, or a fixed dollar minimum tax between $100 and $1500. There is an additional 0.09% tax on subsidiary capital. |
111 | |||
112 | |||
113 | |||
114 | |||
115 | North Carolina | 6.9% | The franchise tax rate is $1.50 per $1,000, with a minimum of $35. |
116 | |||
117 | North Dakota | 2.6% > $0 | 7% for financial institutions with a minimum of $50. Corporations making a water's-edge election must pay an additional 3.5% tax. |
118 | 4.1 > 3K | ||
119 | 5.6 > 8K | ||
120 | 6.4 > 20K | ||
121 | 6.5 > 30K | ||
122 | Ohio | 5.1% > $0 | A value added-style tax, the Corporate Activities Tax (CAT) was instituted in 2005. It will be phased in through 2010 while the Corporate Franchise Tax (Ohio's income tax) is phased out. Beginning April 1, 2008 the CAT rate is .208% (80% of .26%). For tax year 2008 companies owe 40% of Corporate Franchise Tax liability. |
123 | 8.5 > 50K | ||
124 | |||
125 | |||
126 | |||
127 | |||
128 | |||
129 | |||
130 | Oklahoma | 6.0% | Additional franchise tax of $1.25 for each $1,000 of capital invested or used in Oklahoma. |
131 | |||
132 | |||
133 | Oregon | 6.6% | Minimum tax $10. |
134 | Pennsylvania | 9.99% | Imposes a capital stock and foreign franchise tax of 0.289% on taxable income over $125K. Bank and Trust Company Shares Tax is 1.25%. |
135 | |||
136 | |||
137 | |||
138 | Rhode Island | 9.0% | Greater of 9% of net income apportioned to Rhode Island, or a franchise tax on authorized capital stock at the rate of $2.50 for each $10,000.00 or fractional part thereof (minimum of $500). |
139 | |||
140 | |||
141 | |||
142 | |||
143 | |||
144 | South Carolina | 5.0% | 4.5% for banks; 6% for savings and loans. |
145 | South Dakota | None | 6% on a bank's net income. Minimum tax is $200 per location (banks). |
146 | |||
147 | Tennessee | 6.5% | Franchise tax of .25% of the greater of net worth or real and tangible property (minimum $100) |
148 | Texas | 1.0% | Texas's 1% franchise tax is a gross receipts tax paid by most taxable entities. Retailers pay 0.5%. |
149 | |||
150 | |||
151 | Utah | 5.0% | Minimum tax $100. |
152 | Vermont | 6.0% > $0 | Minimum tax $250. |
153 | 7.0 > 10k | ||
154 | 8.5 > 25k | ||
155 | Virginia | 6.0% | Bank franchise tax is 1.0%. |
156 | |||
157 | Washington | Rate Varies | Washington has no income tax but has a gross receipts tax called the Business & Occupation (B&O) Tax which is levied at various rates. The major rates are 0.471% for retail sales, 0.484% for wholesale and manufacturing, and 1.5% for service and other activities. |
158 | |||
159 | |||
160 | |||
161 | |||
162 | |||
163 | West Virginia | 8.75% | Business franchise tax of .55% of taxable capital, or a minimum of $50. |
164 | Wisconsin | 7.9% | |
165 | Wyoming | None | |
166 | District of Columbia | 9.975% | Minimum tax is $100. Ball park gross receipts tax levied on gross receipts over $5 million at varying rates. |
167 | |||
168 | |||
169 | |||
170 | Sources: Tax Foundation and each state's tax forms and instructions | ||
1 | State Corporate Income Tax Rates | ||
|---|---|---|---|
2 | As of January 1, 2007 | ||
3 | (2007's noteworthy changes in bold italics) | ||
4 | State | Tax Rates and Brackets | Special Rates or Notes |
5 | Alabama | 6.50% | Federal deductibility |
6 | Alaska | 1.0% > $0 | |
7 | 2.0 > 10K | ||
8 | 3.0 > 20K | ||
9 | 4.0 > 30K | ||
10 | 5.0 > 40K | ||
11 | 6.0 > 50K | ||
12 | 7.0 > 60K | ||
13 | 8.0 > 70K | ||
14 | 9.0 > 80K | ||
15 | 9.4 > 90K | ||
16 | Arizona | 6.968% | Minimum tax is $50. |
17 | Arkansas | 1.0% > $0 | |
18 | 2.0 > 3K | ||
19 | 3.0 > 6K | ||
20 | 5.0 > 11K | ||
21 | 6.0 > 25K | ||
22 | 6.5 > 100K | ||
23 | California | 8.84% | Minimum tax is $800. 10.84% on financial institutions. The tax rate on S-Corporations is 1.5% (3.5% for financial S-Corporations). |
24 | Colorado | 4.63% | |
25 | Connecticut | 7.50% | 20% surcharge for 2006. Pay higher of income tax or tax on capital (3.5 mills- $1,000,000 maximum). |
26 | Delaware | 8.70% | |
27 | Florida | 5.50% | If paid federal AMT, must pay FL higher of Corp. Inc. Tax or 3.3% alternative minimum rate. |
28 | Georgia | 6.00% | |
29 | Hawaii | 4.4%> $0 | 4% capital gains rate |
30 | 5.4 > 25K | ||
31 | 6.4 > 100K | ||
32 | Idaho | 7.60% | Minimum tax is $20. |
33 | Illinois | 7.30% | Includes 2.5% income replacement tax. 1.5% for S-Corps. |
34 | Indiana | 8.50% | |
35 | Iowa | 6.0% > $0 | 50% federal deductibility |
36 | 8.0 > 25K | ||
37 | 10.0 > 100K | ||
38 | 12.0 > 250K | ||
39 | Kansas | 4% > $0 | 3.35% surtax over $50,000 |
40 | 7.35 > 50K | ||
41 | Kentucky | 4.% > $0 | Corporations pay the largest of the Corporate Income Tax, a gross receipts tax computed on either in-state sales or gross profits, or a minimum tax of $175. |
42 | 5.0 > 50K | ||
43 | 7.0 > 100K | ||
44 | Louisiana | 4.0 > $0 | Federal deductibility |
45 | 5.0 > 25K | ||
46 | 6.0 > 50K | ||
47 | 7.0 > 100K | ||
48 | 8.0 > 200K | ||
49 | Maine | 3.5% > $0 | |
50 | 7.93 > 25K | ||
51 | 8.33 > 75K | ||
52 | 8.93 > 250K | ||
53 | Maryland | 7.00% | |
54 | Massachusetts | 9.50% | Additional tax of $2.60 per $1,000 on taxable tangible property (or net worth allocable to state, for intangible property corporations); minimum tax of $456. 10.5% on financial institutions. |
55 | Michigan | 1.90% | Modified VAT applies to gross receipts, called the Single Business Tax (SBT). Must file if gross receipts over $350K. The SBT will be repealed as of December 31, 2007. Michigan lawmakers are currently debating plans to replace the SBT. |
56 | |||
57 | |||
58 | Minnesota | 9.8% | 5.8% alternative minimum tax rate. A minimum tax is levied based on Minnesota property, payroll and sales. |
59 | Mississippi | 3.0% > $0 | Franchise tax of $2.50 per $1,000 with minimum tax of $25 |
60 | 4.0 > 5K | ||
61 | 5.0 >10K | ||
62 | Missouri | 6.25% | 7% on financial institutions; 50% of federal tax deductible. |
63 | Montana | 6.75% | 7% for corporations filing under a water's edge election. Minimum tax is $50. |
64 | |||
65 | |||
66 | Nebraska | 5.58% > $0 | |
67 | 7.81 > 50K | ||
68 | Nevada | None | |
69 | New Hampshire | 8.5% > $50K | Its two corporate taxes – the Business Profits Tax (BPT) and the Business Enterprise Tax (BET) – have different rates and bases. The BPT rate is 8.5% on gross income over $50K. The BET rate is either 0.75% on gross income over $150K, or 0.75% on total compensation paid out, including dividends and interest, over $75K, making 9.25% the top rate a corporation may face. |
70 | 9.25% > 150K | ||
71 | |||
72 | New Jersey | 6.5% > $0 | The minimum tax is $500. An Alternative Minimum Assessment based on Gross Receipts applies if greater than corporate franchise tax for out-of-state companies with New Jersey sales. Companies with income greater than $100K pay 9% on all income, companies with income greater than $50K but less than $100K pay 7.5 % on all income and companies with income under $50K pay 6.5%. 4% surtax for 2006. |
73 | 7.5% > $50K | ||
74 | 9.0% > $100K | ||
75 | |||
76 | New Mexico | 4.8% > $0 | |
77 | 6.4% > 500K | ||
78 | 7.6 %> 1,000,000 | ||
79 | New York | 7.50% | Tax rates for small business taxpayers: The tax rate on entire net income (ENI) for a small business taxpayer with ENI of $290,000 is 6.5% for tax years beginning after January 1, 2005. |
82 | North Carolina | 6.90% | |
83 | North Dakota | 2.6% > $0 | 7% for financial institutions; minimum tax is $50. |
84 | 4.1% > 3K | ||
85 | 5.6% > 8K | ||
86 | 6.4% > 20K | ||
87 | 7.0% > 30K | ||
88 | Ohio | 5.1% > $0 | A Value Added-style tax, the Corporate Activities Tax (CAT) was instituted in 2005. It will be phased in through 2010 while the Corporate Franchise Tax (Ohio corporate income tax) is phased out. The rate in 2006 is 40% of .26%, or .104%. For tax year 2006 Ohio companies owe 60% of Corporate Franchise Tax liability. |
89 | 8.5% > 50K | ||
90 | Oklahoma | 6.00% | |
91 | Oregon | 6.60% | |
92 | Pennsylvania | 9.99% | Imposes a capital stock and franchise tax of 0.489% on taxable income over $ 125K. |
93 | Rhode Island | 9.00% | Nine percent (9%) of net income apportioned to Rhode Island; or an annual franchise tax on authorized capital stock at the rate of $2.50 for each $10,000.00 or fractional part thereof minimum of $500, whichever amount shall yield the greatest tax. |
94 | South Carolina | 5.00% | 4.5% for banks; 6% for savings and loans. |
95 | South Dakota | None | 6%-0.25% on a bank's net income. Minimum tax is $200 per location (banks). |
96 | Tennessee | 6.50% | |
97 | Texas | 4.50% | Rate is on net taxable earned surplus but has been repealed as of January 1, 2007 and replaced with a gross receipts tax called the Texas Margins Tax that levies a 1% tax on the gross receipts of all Texas companies. |
98 | Utah | 5.00% | Minimum tax is $100. |
99 | Vermont | 6.0% > $0 | Minimum tax is $250. |
100 | 7% > 10K | ||
101 | 8.75% > 25K | ||
102 | 8.9% > 250K | ||
103 | Virginia | 6.00% | |
104 | Washington | None | Gross receipts tax called Business & Occupation (B&O) Tax. |
105 | West Virginia | 9.00% | Business franchise tax of .7% of taxable capital, or a minimum of $50. |
106 | Wisconsin | 7.90% | |
107 | Wyoming | None | |
108 | District of Columbia | 9.975% | Minimum tax is $100. Includes 5% surtax. Ball park gross receipts tax levied on gross receipts over $5 million at varying rates. |
109 | |||
110 | Note: Bold Italics indicate noteworthy tax changes during 2006. | ||
111 | Sources: Tax Foundation and each state's tax forms and instructions | ||
1 | State Corporate Income Tax Rates | ||
|---|---|---|---|
2 | As of January 1, 2006 | ||
3 | (2006's noteworthy changes in bold italics) | ||
4 | State | Tax Rates and Brackets | Special Rates or Notes |
5 | Alabama | 6.50% | Federal Deductibility |
6 | Alaska | 1.0% > $0 | |
7 | 2.0 > 10K | ||
8 | 3.0 > 20K | ||
9 | 4.0 > 30K | ||
10 | 5.0 > 40K | ||
11 | 6.0 > 50K | ||
12 | 7.0 > 60K | ||
13 | 8.0 > 70K | ||
14 | 9.0 > 80K | ||
15 | 9.4 > 90K | ||
16 | Arizona | 6.968% | Minimum tax is $50. |
17 | Arkansas | 1.0% > $0 | Corporations with net incomes exceeding $100,000, 6.5% of entire net income. 3% Surcharge on Tax Paid. |
18 | 2.0 > 3K | ||
19 | 3.0 > 6K | ||
20 | 5.0 > 11K | ||
21 | 6.0 > 25K | ||
22 | 6.5 > 100K | ||
23 | California | 8.84% | 10.84% on financial institutions. Minimum tax is $800. The tax rate on S-Corporations is 1.5% (3.5% for banks). |
24 | Colorado | 4.63% | |
25 | Connecticut | 7.50% | |
26 | Delaware | 8.70% | |
27 | Florida | 5.50% | If paid federal AMT, must Pay FL higher of Corp. Inc. Tax or 3.3% alternative minimum rate. |
28 | Georgia | 6.00% | |
29 | Hawaii | 4.4%> $0 | 4% capital gains rate, 7.92% on financial institutions. |
30 | 5.4 > 25K | ||
31 | 6.4 > 100K | ||
32 | Idaho | 7.60% | Minimum tax is $20. |
33 | Illinois | 7.30% | Includes 2.5% income replacement tax. 1.5% for S-Corps. |
34 | Indiana | 8.50% | |
35 | Iowa | 6.0% > $0 | 5% on financial institutions; 50% federal deductibility. |
36 | 8.0 > 25K | ||
37 | 10.0 > 100K | ||
38 | 12.0 > 250K | ||
39 | Kansas | 4% | 3.35% surtax over $50,000; Banks 2.25% plus 2.125% surtax over $25,000. |
40 | Kentucky | 4.% > $0 | Corporations pay the largest of the Corporate Income Tax, a gross receipts tax computed on either in-state sales or gross profits, or a minimum tax of $175 |
41 | 5.0 > 50K | ||
42 | 7.0 > 100K | ||
43 | Louisiana | 4.0 > $0 | Federal deductibility. |
44 | 5.0 > 25K | ||
45 | 6.0 > 50K | ||
46 | 7.0 > 100K | ||
47 | 8.0 > 200K | ||
48 | Maine | 3.5% > $0 | |
49 | 7.93 > 25K | ||
50 | 8.33 > 75K | ||
51 | 8.93 > 250K | ||
52 | Maryland | 7.00% | |
53 | Massachusetts | 9.50% | Rate includes 14% surtax, as does the following: an additional tax of $2.60 per $1,000 on taxable tangible property (or net worth allocable to state, for intangible property corporations); minimum tax of $456. 10.5% on financial institutions; 10.91% on savings and loan associations. |
54 | Michigan | 1.9%>$45K | Modified VAT applies to gross receipts. Must file if gross receipts over $250K. $45K deductible. Tax rate reduction by 0.1 percent was legislated in 1998 when rate was 2.3 percent, with intent to phase tax out over 23 years. If state’s Budget Stabilization Fund balance falls below $250 million for a fiscal year, the next calendar year’s reduction is canceled. |
55 | |||
56 | |||
57 | Minnesota | 9.8% | 5.8% alternative minimum tax rate. A minimum tax is levied based on Minnesota property, payroll and sales. |
58 | Mississippi | 3.0% > $0 | Franchise tax of $2.50 per $1,000 with minimum tax of $25. |
59 | 4.0 > 5K | ||
60 | 5.0 >10K | ||
61 | Missouri | 6.25% | 7% on financial institutions; 50% of federal tax deductible. |
62 | Montana | 6.75% | 7% for corporations filing under a water's edge election. Minimum tax is $50. |
63 | |||
64 | |||
65 | Nebraska | 5.58% > $0 | |
66 | 7.81 > 50K | ||
67 | Nevada | None | |
68 | New Hampshire | 8.5% > $50K | Its two corporate taxes – the Business Profits Tax (BPT) and the Business Enterprise Tax (BET) – have different rates and bases. The BPT rate is 8.5% on gross income over $50K. The BET rate is either 0.75% on gross income over $150K, or 0.75% on total compensation paid out, including dividends and interest, over $75K, making 9.25% the top rate a corporation may face. |
69 | 9.25% > 150K | ||
70 | |||
71 | New Jersey | 6.5% > $0 | The rate reported in the table is the corporation business franchise tax rate. The minimum tax is $500. An Alternative Minimum Assessment based on Gross Receipts applies if greater than corporate franchise tax. Corporations not subject to the franchise tax are subject to a 7.25% income tax. Banking and financial corporations are subject to the franchise tax. Corporations with net income under $100,000 are taxed at 6.5%. The tax on S corporations is being phased out through 2007. The tax rate on a New Jersey S corporation that has entire net income not subject to federal corporate income tax in excess of $100,000 will remain at 1.33% for privilege periods ending on or before June 30, 2006. The rate will be 0.67% for privilege periods ending on or after July 1, 2006, but on or before June 30, 2007; and there will be no tax imposed for privilege periods ending on or after July 1, 2007. The tax on S corporation with entire net income not subject to federal corporate income tax of $100,00 or less is eliminated for privilege periods ending on or after July 1, 2007 |
72 | 7.5% > $50K | ||
73 | 9.0% > $100K | ||
74 | |||
75 | |||
76 | New Mexico | 4.8% > $0 | |
77 | 6.4% > 500K | ||
78 | 7.6 %> 1,000,000 | ||
79 | New York | 7.50% | Tax rates for small business taxpayers — The tax rate on entire net income (ENI) for a small business taxpayer with ENI of $290,000 is 6.5% for tax years beginning after January 1, 2005. |
82 | North Carolina | 6.90% | |
83 | North Dakota | 2.6% > $0 | 7% for financial institutions; Federal deductibility. Minimum tax is $50. |
84 | 4.1% > 3K | ||
85 | 5.6% > 8K | ||
86 | 6.4% > 20K | ||
87 | 7.0% > 30K | ||
88 | Ohio | 5.1% > $0 | A Value Added style tax, the Corporate Activities Tax (CAT) was instituted in 2005. It will be phased in through 2010 while the Corporate Franchise Tax (Ohio corporate income tax) is phased out. The rate in 2005 is 23% of .26%, or .0598% |
89 | 8.5 > 50K | ||
90 | Oklahoma | 6.00% | |
91 | Oregon | 6.60% | Minimum tax is $10. |
92 | Pennsylvania | 9.99% | Imposes a capital stock and franchise tax of 0.724% on taxable income over $ 150K. |
93 | Rhode Island | 9.00% | Nine percent (9%)of net income apportioned to Rhode Island; or an annual franchise tax on its authorized capital stock at the rate of $2.50 for each $10,000.00 or fractional part thereof minimum of $500,whichever amount shall yield the greatest tax. |
94 | South Carolina | 5.00% | 4.5% for banks; 6% for savings and loans. |
95 | South Dakota | None | 6%-0.25% on a bank's net income. Minimum tax is $200 per location (banks). |
96 | Tennessee | 6.50% | |
97 | Texas | 4.50% | Rate is on net taxable earned surplus. |
98 | Utah | 5.00% | Minimum tax is $100. |
99 | Vermont | 7.0% > $0 | Minimum tax is $250. |
100 | 8.1 > 10K | ||
101 | 9.2 > 25K | ||
102 | 9.75 > 250K | ||
103 | Virginia | 6.00% | |
104 | Washington | None | Gross receipts tax called Business & Operations (B&O) Tax. |
105 | West Virginia | 9.00% | "Business franchise tax" of $0.70 per cent of taxable capital, or a minimum of $50. |
106 | Wisconsin | 7.90% | |
107 | Wyoming | None | |
108 | District of Columbia | 9.975% | Minimum tax is $100. Includes 5% surtax. Ball park gross receipts tax levied on gross receipts over $5 million at varying rates. |
109 | |||
110 | Note: Bold Italics indicate noteworthy tax changes during 2005. | ||
111 | Sources: Tax Foundation; Each state's tax forms and instructions; Commerce Clearing House. | ||
112 | |||
113 | |||
114 | Tax Foundation | ||
115 | Ph: (202) 464-6200 | ||
116 | www.taxfoundation.org | ||
1 | State Corporate Income Tax Rates | ||
|---|---|---|---|
2 | As of January 1, 2005 | ||
3 | (205's noteworthy changes in bold italics) | ||
4 | State | Tax Rates and Brackets | Special Rates or Notes |
5 | Alabama | 6.50% | Federal Deductibility |
6 | Alaska | 1.0% > $0 | |
7 | 2.0 > 10K | ||
8 | 3.0 > 20K | ||
9 | 4.0 > 30K | ||
10 | 5.0 > 40K | ||
11 | 6.0 > 50K | ||
12 | 7.0 > 60K | ||
13 | 8.0 > 70K | ||
14 | 9.0 > 80K | ||
15 | 9.4 > 90K | ||
16 | Arizona | 6.97% | Minimum tax is $50. |
17 | Arkansas | 1.0% > $0 | Corporations with net incomes exceeding $100,000, 6.5% of entire net income. |
18 | 2.0 > 3K | ||
19 | 3.0 > 6K | ||
20 | 5.0 > 11K | ||
21 | 6.0 > 25K | ||
22 | 6.5 > 100K | ||
23 | California | 8.84% | 10.84% on financial institutions. Minimum tax is $800. The tax rate on S-Corporations is 1.5% (3.5% for banks). |
24 | Colorado | 4.63% | |
25 | Connecticut | 7.50% | |
26 | Delaware | 8.70% | |
27 | Florida | 5.50% | 3.3% alternative minimum rate. An exemption of $5,000 is allowed |
28 | Georgia | 6.00% | |
29 | Hawaii | 4.4%> $0 | 4% capital gains rate, 7.92% on financial institutions. |
30 | 5.4 . 25K | ||
31 | 6.4 > 100K | ||
32 | Idaho | 7.60% | Minimum tax is $20. |
33 | Illinois | 7.30% | Includes 2.5% income replacement tax. |
34 | Indiana | 8.50% | |
35 | Iowa | 6.0% > $0 | 5% on financial institutions; 7.2% alternative minimum rate; 50% federal deductibility. |
36 | 8.0 > 25K | ||
37 | 10.0 > 100K | ||
38 | 12.0 > 250K | ||
39 | Kansas | 4% | 3.35% surtax over $50,000; Banks 2.25% plus 2.125% surtax over $25,000. |
40 | Kentucky | 4.% > $0 | |
41 | 5.0 > 25K | ||
42 | 6.0 > 50K | ||
43 | 7.0 > 100K | ||
44 | 8.25 > 250K | ||
45 | Louisiana | 4.0 > $0 | Federal deductibility. |
46 | 5.0 > 25K | ||
47 | 6.0 > 50K | ||
48 | 7.0 > 100K | ||
49 | 8.0 > 200K | ||
50 | Maine | 3.5% > $0 | 27% of federal alternative minimum tax liability. |
51 | 7.93 > 25K | ||
52 | 8.33 > 75K | ||
53 | 8.93 > 250K | ||
54 | Maryland | 7.00% | |
55 | Massachusetts | 9.50% | Rate includes 14% surtax, as does the following: an additional tax of $7.00 per $1,000 on taxable tangible property (or net worth allocable to state, for intangible property corporations); minimum tax of $456. 10.5% on financial institutions; 10.91% on savings and loan associations. |
56 | Michigan | 1.9%>$45K | Modified VAT applies to gross receipts. Must file if gross receipts over $250K. $45K deductible. Tax rate reduction by 0.1 percent was legislated in 1998 when rate was 2.3 percent, with intent to phase tax out over 23 years. If state’s Budget Stabilization Fund balance falls below $250 million for a fiscal year, the next calendar year’s reduction is canceled. |
57 | |||
58 | |||
59 | Minnesota | 9.8% | 5.8% alternative minimum tax rate. A minimum tax is levied based on Minnesota property, payroll and sales. |
60 | Mississippi | 3.0% > $0 | Franchise tax of $2.50 per $1,000 with minimum tax of $25. |
61 | 4.0 > 5K | ||
62 | 5.0 >10K | ||
63 | Missouri | 6.25% | 7% on financial institutions; 50% of federal tax deductible. |
64 | Montana | 6.75% | 7% for corporations filing under a water's edge election. Minimum tax is $50. Minimum tax for small business corporations is $10. |
65 | |||
66 | |||
67 | Nebraska | 5.58% > $0 | |
68 | 7.81 > 50K | ||
69 | Nevada | None | |
70 | New Hampshire | 8.5% > $50K | Its two corporate taxes – the Business Profits Tax (BPT) and the Business Enterprise Tax (BET) – have different rates and bases. The BPT rate is 8.5% on gross income over $50K. The BET rate is either 0.75% on gross income over $150K, or 0.75% on total compensation paid out, including dividends and interest, over $75K, making 9.25% the top rate a corporation may face. |
71 | 9.25% > 150K | ||
72 | |||
73 | New Jersey | 6.5% > $0 | The rate reported in the table is the corporation business franchise tax rate. The minimum tax is $500. An Alternative Minimum Assessment based on Gross Receipts applies if greater than corporate franchise tax. Corporations not subject to the franchise tax are subject to a 7.25% income tax. Banking and financial corporations are subject to the franchise tax. Corporations with net income under $100,000 are taxed at 6.5%. The tax on S corporations is being phased out through 2007. The tax rate on a New Jersey S corporation that has entire net income not subject to federal corporate income tax in excess of $100,000 will remain at 1.33% for privilege periods ending on or before June 30, 2006. The rate will be 0.67% for privilege periods ending on or after July 1, 2006, but on or before June 30, 2007; and there will be no tax imposed for privilege periods ending on or after July 1, 2007. The tax on S corporation with entire net income not subject to federal corporate income tax of $100,00 or less is eliminated for privilege periods ending on or after July 1, 2007 |
74 | 7.5% > $50K | ||
75 | 9.0% > $100K | ||
76 | |||
77 | |||
78 | New Mexico | 4.8% > $0 | |
79 | 6.4% > 500K | ||
80 | 7.6 %> 1,000,000 | ||
81 | New York | 7.50% | Tax rates for small business taxpayers — The tax rate on entire net income (ENI) for a small business taxpayer with ENI of $200,000 or less will be reduced from 7.5% to 6.85% for tax years beginning after June 30, 2003. The tax rate on ENI for a small business taxpayer with ENI greater than $200,000 will be reduced from 7.5% to a rate between 6.85% and 7.5% for tax years beginning after June 30, 2003. 2.5% surtax rate. |
84 | North Carolina | 6.90% | |
85 | North Dakota | 2.6% > $0 | 7% for financial institutions plus 2% surtax rate; Federal deductibility. Minimum tax is $50. |
86 | 4.1% > 3K | ||
87 | 5.6% > 8K | ||
88 | 6.4% > 20K | ||
89 | 7.0% > 30K | ||
90 | Ohio | 5.1% > $0 | For financial institutions, 0.015 times value of stock. Minimum tax is $50. The net worth rate for corporations other than financial institution is 4 mills. Taxpayers. The net worth rate for financial institutions is thirteen mills. Financial institutions are exempt from the net income base. |
91 | 8.5 > 50K | ||
92 | Oklahoma | 6.00% | |
93 | Oregon | 6.60% | Minimum tax is $10. |
94 | Pennsylvania | 9.99% | Imposes a capital stock and franchise tax of 0.724% on taxable income over $ 150K. |
95 | Rhode Island | 9.00% | Nine percent (9%)of net income apportioned to Rhode Island; or an annual franchise tax on its authorized capital stock at the rate of $2.50 for each $10,000.00 or fractional part thereof minimum of $250.00,whichever amount shall yield the greatest tax. |
96 | South Carolina | 5.00% | 4.5% for banks; 6% for savings and loans. |
97 | South Dakota | None | 6%-0.25% on a bank's net income. Minimum tax is $500 per location (banks). |
98 | Tennessee | 6.50% | |
99 | Texas | None | |
100 | Utah | 5.00% | Minimum tax is $100. |
101 | Vermont | 7.0% > $0 | Minimum tax is $250. |
102 | 8.1 > 10K | ||
103 | 9.2 > 25K | ||
104 | 9.75 > 250K | ||
105 | Virginia | 6.00% | |
106 | Washington | None | Gross receipts tax. The 20 different rates range from 0.011%-5.029%depending on the type of business activity. |
107 | West Virginia | 9.00% | "Business franchise tax" of $0.70 per $100 of taxable capital, or a minimum of $50. |
108 | Wisconsin | 7.90% | |
109 | Wyoming | None | |
110 | District of Columbia | 9.98% | Minimum tax is $100. Includes 5% surtax. |
111 | |||
112 | Note: Bold Italics indicate noteworthy tax changes during 2004. | ||
113 | Sources: Tax Foundation; Each state's tax forms and instructions; Commerce Clearing House; Federation of Tax Administrators. | ||
114 | |||
115 | Tax Foundation | ||
116 | Ph: (202) 464-6200 | ||
117 | www.taxfoundation.org | ||
1 | State Corporate Income Tax Rates | ||
|---|---|---|---|
2 | As of January 1, 2004 | ||
3 | (2004's noteworthy changes in bold italics) | ||
4 | |||
5 | State | Tax Rates and Brackets | Special Rates or Notes |
6 | Alabama | 6.50% | Federal Deductibility |
7 | Alaska | 1.0% > $0 | |
8 | 2.0% > $10K | ||
9 | 3.0% > $20K | ||
10 | 4.0% >$ 30K | ||
11 | 5.0% > $40K | ||
12 | 6.0% > $50K | ||
13 | 7.0% > $60K | ||
14 | 8.0% >$ 70K | ||
15 | 9.0% >$ 80K | ||
16 | 9.4% >$ 90K | ||
17 | Arizona | 6.97% | Minimum tax is $50. |
18 | Arkansas | 1.0% > $0 | Corporations with net incomes exceeding $100,000, 6.5% of entire net income. |
19 | 2.0% > $3K | ||
20 | 3.0% > $6K | ||
21 | 5.0% > $11K | ||
22 | 6.0% >$ 25K | ||
23 | 6.5% >$ 100K | ||
24 | California | 8.84% | 10.84% on financial institutions.6.65% alternative minimum tax rate (2% for financial institutions). Minimum tax is $800. |
25 | Colorado | 4.63% | |
26 | Connecticut | 7.50% | |
27 | Delaware | 8.70% | |
28 | Florida | 5.50% | 3.3% alternative minimum rate. An exemption of $5,000 is allowed |
29 | Georgia | 6.00% | |
30 | Hawaii | 4.4%> $0 | 4% capital gains rate, 7.92% on financial institutions. |
31 | 5.4% $25K | ||
32 | 6.4% > $100K | ||
33 | Idaho | 7.60% | Minimum tax is $20. |
34 | Illinois | 7.30% | Includes 2.5% income replacement tax. |
35 | Indiana | 8.50% | |
36 | Iowa | 6.0% > $0 | 5% on financial institutions; 7.2% alternative minimum rate; 50% federal deductibility. |
37 | 8.0% > $25K | ||
38 | 10.0% > $100K | ||
39 | 12.0 %> $250K | ||
40 | Kansas | 4% | 3.35% surtax over $50,000; Banks 2.25% plus 2.125% surtax over $25,000. |
41 | Kentucky | 4.% > $0 | |
42 | 5.0% > $25K | ||
43 | 6.0% > $50K | ||
44 | 7.0% > $100K | ||
45 | 8.25% > $250K | ||
46 | Louisiana | 4.0 > $0 | Federal deductibility. |
47 | 5.0 > 25K | ||
48 | 6.0 > 50K | ||
49 | 7.0 > 100K | ||
50 | 8.0 > 200K | ||
51 | Maine | 3.5% > $0 | 27% of federal alternative minimum tax liability. |
52 | 7.93 > 25K | ||
53 | 8.33 > 75K | ||
54 | 8.93 > 250K | ||
55 | Maryland | 7.00% | |
56 | Massachusetts | 9.50% | Rate includes 14% surtax, as does the following: an additional tax of $7.00 per $1,000 on taxable tangible property (or net worth allocable to state, for intangible property corporations); minimum tax of $456. 10.5% on financial institutions; 10.91% on savings and loan associations |
57 | Michigan | 1.9% > $45K | Modified VAT applies to gross receipts. Must file if gross receipts over $250K. $45K deductible. Tax rate reduction by 0.1 percent was legislated in 1998 when rate was 2.3 percent, with intent to phase tax out over 23 years. If state’s Budget Stabilization Fund balance falls below $250 million for a fiscal year, the next calendar year’s reduction is canceled. |
58 | Minnesota | 9.8% | 5.8% alternative minimum tax rate. A minimum tax is levied based on Minnesota property, payroll and sales. |
59 | Mississippi | 3.0% > $0 | Franchise tax of $2.50 per $1,000 with minimum tax of $25. |
60 | 4.0% > $5K | ||
61 | 5.0% >$10K | ||
62 | Missouri | 6.25% | 7% on financial institutions; 50% of federal tax deductible. |
63 | Montana | 6.75% | 7% for corporations filing under a water's edge election. |
64 | |||
65 | Minimum tax is $50. Minimum tax for small business corporations is $10. | ||
66 | Nebraska | 5.58% > $0 | |
67 | 7.81% > $50K | ||
68 | Nevada | None | |
69 | New Hampshire | 8.5% > $50K | Its two corporate taxes – the Business Profits Tax (BPT) and the Business Enterprise Tax (BET) – have different rates and bases. The BPT rate is 8.5% on gross income over $50K. The BET rate is either 0.75% on gross income over $150K, or 0.75% on total compensation paid out, including dividends and interest, over $75K, making 9.25% the top rate a corporation may face. |
70 | 9.25% > $150K | ||
71 | New Jersey | 9.0% | The rate reported in the table is the corporation business franchise tax rate. The minimum tax is $500. An Alternative Minimum Assessment based on Gross Receipts applies if greater than corporate franchise tax. Corporations not subject to the franchise tax are subject to a 7.25% income tax. Banking and financial corporations are subject to the franchise tax. Corporations with net income under $100,000 are taxed at 6.5%. The tax on S corporations is being phased out through 2007. The tax rate on a New Jersey S corporation that has entire net income not subject to federal corporate income tax in excess of $100,000 will remain at 1.33% for privilege periods ending on or before June 30, 2006. The rate will be 0.67% for privilege periods ending on or after July 1, 2006, but on or before June 30, 2007; and there will be no tax imposed for privilege periods ending on or after July 1, 2007. The tax on S corporation with entire net income not subject to federal corporate income tax of $100,00 or less is eliminated for privilege periods ending on or after July 1, 2007 |
72 | New Mexico | 4.8% > $0 | |
73 | 6.4% > $500K | ||
74 | 7.6 %> $1million | ||
75 | New York | 7.50% | Tax rates for small business taxpayers–The tax rate on entire net income (ENI) for a small business taxpayer with ENI of $200,000 or less will be reduced from 7.5% to 6.85% for tax years beginning after June 30, 2003. The tax rate on ENI for a small business taxpayer with ENI greater than $200,000 will be reduced from 7.5% to a rate between 6.85% and 7.5% for tax years beginning after June 30, 2003. 2.5% surtax rate. |
76 | North Carolina | 6.90% | |
77 | North Dakota | 3.0% > $0 | 5% for financial institutions plus 2% surtax rate; Federal deductibility. |
78 | 4.5% > $3K | ||
79 | 6.0% > $8K | Minimum tax is $50. | |
80 | 7.5% > $20K | ||
81 | 9.0% > $30K | ||
82 | 10.5% > $50K | ||
83 | Ohio | 5.1% > $0 | For financial institutions, 0.015 times value of stock. Minimum tax is $50. The net worth rate for corporations other than financial institution is 4 mills. Taxpayers. The net worth rate for financial institutions is thirteen mills. Financial institutions are exempt from the net income base. |
84 | 8.5% > $50K | ||
85 | Oklahoma | 6.00% | |
86 | Oregon | 6.60% | Minimum tax is $10. |
87 | Pennsylvania | 9.99% | Imposes a capital stock and franchise tax of 0.724% on taxable income over $ 150K. |
88 | Rhode Island | 9.00% | Nine percent (9%) of net income apportioned to Rhode Island; or an annual franchise tax on its authorized capital stock at the rate of $2.50 for each $10,000.00 or fractional part thereof minimum of $250.00, whichever amount shall yield the greatest tax. |
89 | South Carolina | 5.00% | 4.5% for banks; 6% for savings and loans. |
90 | South Dakota | None | 6%-0.25% on a bank's net income. Minimum tax is $200 per location (banks). |
91 | Tennessee | 6.50% | |
92 | Texas | None | |
93 | Utah | 5.00% | Minimum tax is $100. |
94 | Vermont | 7.0% > $0 | Minimum tax is $250. |
95 | 8.1% > $10K | ||
96 | 9.2% > $25K | ||
97 | 9.75% > $250K | ||
98 | Virginia | 6.00% | |
99 | Washington | None | Gross receipts tax. The 20 different rates range from 0.011%-5.029%depending on the type of business activity. |
100 | West Virginia | 9.00% | "Business franchise tax" of $0.70 per $100 of taxable capital, or a minimum of $50. |
101 | Wisconsin | 7.90% | |
102 | Wyoming | None | |
103 | District of Columbia | 9.98% | Minimum tax is $100. Includes 5% surtax. |
104 | |||
105 | Note: Bold Italics indicate noteworthy tax changes during 2001. | ||
106 | Sources: Tax Foundation; Each state's tax forms and instructions; Commerce Clearing House; Federation of Tax Administrators. | ||
107 | |||
108 | |||
109 | Tax Foundation | ||
110 | Ph: (202) 464-6200 | ||
111 | www.taxfoundation.org | ||
1 | State Corporate Income Tax Rates | ||
|---|---|---|---|
2 | As of January 1, 2003 | ||
3 | (2003's noteworthy changes in bold italics) | ||
4 | |||
5 | State | Tax Rates and Brackets | Special Rates or Notes |
6 | Alabama | 5.00% | 6.5% on financial institutions. |
7 | Alaska | 1.0% > $0 | |
8 | 2.0 > 10K | ||
9 | 3.0 > 20K | ||
10 | 4.0 > 30K | ||
11 | 5.0 > 40K | ||
12 | 6.0 > 50K | ||
13 | 7.0 > 60K | ||
14 | 8.0 > 70K | ||
15 | 9.0 > 80K | ||
16 | 9.4 > 90K | ||
17 | Arizona | 6.97% | Minimum tax is $50. |
18 | Arkansas | 1.0% > $0 | Corporations with net incomes exceeding $100,000, 6.5% of entire net income. |
19 | 2.0 > 3K | ||
20 | 3.0 . 6K | ||
21 | 5.0 > 11K | ||
22 | 6.0 > 25K | ||
23 | 6.5 > 100K | ||
24 | California | 8.84% | 10.84% on financial institutions.6.65% alternative minimum tax rate (2% for financial institutions). Minimum tax is $800. |
25 | Colorado | 4.63% | |
26 | Connecticut | 7.50% | |
27 | Delaware | 8.70% | |
28 | Florida | 5.50% | 3.3% alternative minimum rate. |
29 | Georgia | 6.00% | |
30 | Hawaii | 4.4%> $0 | 4% capital gains rate, 7.92% on financial institutions. |
31 | 5.4 . 25K | ||
32 | 6.4 > 100K | ||
33 | Idaho | 7.60% | Minimum tax is $20. |
34 | Illinois | 4.80% | 2.5% income replacement tax. |
35 | Indiana | 3.40% | 4.5% on supplemental income. Rate increases to 8.5% in 2003. |
36 | Iowa | 6.0% > $0 | 5% on financial institutions; 7.2%alternative minimum rate; 50% federal deductibility. |
37 | 8.0 . 25K | ||
38 | 10.0 > 100K | ||
39 | 12.0 > 250K | ||
40 | Kansas | 4% > $0 | 3.35% surtax over $50,000; Banks 2.25% plus 2.125% surtax over $25,000. |
41 | 7.35 > 50K | ||
42 | Kentucky | 4.% > $0 | |
43 | 5.0 > 25K | ||
44 | 6.0 > 50K | ||
45 | 7.0 > 100K | ||
46 | 8.25 > 250K | ||
47 | Louisiana | 4.0 > $0 | Federal deductibility. |
48 | 5.0 . 25K | ||
49 | 6.0 > 50K | ||
50 | 7.0 > 100K | ||
51 | 8.0 > 200K | ||
52 | Maine | 3.5% > $0, 7.93 > 25,000, 8.33 > 75.000, 8.93 > 250,000 | 27% of federal alternative minimum tax liability. |
53 | Maryland | 7.00% | |
54 | Massachusetts | 9.50% | Franchise tax built into rate (.26% per $1,000 of income); 10.5% on financial institutions;10.91% on savings and loan associations. Minimum tax is $456. |
55 | Michigan | 1.9% >$45,000 | Modified VAT. Rate applies to gross receipts. Must file only with gross receipts over $250,000. $45,000 deductible. The SBT tax rate will continue to be reduced by 0.1 percent annually from its 1998 rate of 2.3 percent. The tax rate reduction, which began January 1, 1999, will continue until the SBT is completely phased out over 23 years, unless the State's Budget Stabilization Fund balance for a fiscal year falls below $250 million. If that should happen, the next calendar year's reduction will not take place. |
56 | Minnesota | 9.8% | 5.8% alternative minimum tax rate. A minimum tax is levied based on Minnesota property, payroll and sales. |
57 | Mississippi | 3.0% > $0 | Franchise tax of $2.50 per $1,000 with minimum tax of $25. |
58 | 4.0 > 5K | ||
59 | 5.0 >10K | ||
60 | Missouri | 6.25% | 7% on financial institution; 50% of federal tax deductible. |
61 | Montana | 6.75% | 7% for corporations filing under a water's edge election. |
62 | |||
63 | Minimum tax is $50. Minimum tax for small business corporations is $10. | ||
64 | Nebraska | 5.58% > $0 | |
65 | 7.81 > 50K | ||
66 | Nevada | None | |
67 | New Hampshire | 8.5% | Must file business profits tax only with gross receipts over $50,000. |
68 | Businesses with over $100,000 in gross receipts or wages, interest, and dividends over $50,000 are subject to 0.5% business enterprise tax on total value of wages, interest, and dividends. Such business' BPT liability is reduced by sum of BET liability. | ||
69 | New Jersey | 9.0% | Corporations with entire net income of less than $100,000 pay 7.5%. |
70 | |||
71 | Minimum tax is $200. | ||
72 | New Mexico | 4.8% > $0 | |
73 | 6.4% > 500K | ||
74 | 7.6 %> 1,000K | ||
75 | New York | 7.50% | The rate fell to 7.5% after June 30, 2001. 2.5% surtax rate. |
76 | North Carolina | 6.90% | |
77 | North Dakota | 3.0% > $0 | 5% for financial institutions plus 2% surtax rate; Federal deductibility. |
78 | 4.5 > 3K | ||
79 | 6.0 > 8K | Minimum tax is $50. | |
80 | 7.5 > 20K | ||
81 | 9.0 > 30K | ||
82 | 10.5 > 50K | ||
83 | Ohio | 5.1% > $0 | For financial institutions, 0.015 times value of stock. Minimum tax is $50. |
84 | 8.5 > 50K | ||
85 | Oklahoma | 6.00% | |
86 | Oregon | 6.60% | Minimum tax is $10. |
87 | Pennsylvania | 9.99% | Imposes a "Capital Stock and Franchise Tax." |
88 | Rhode Island | 9.00% | Minimum tax is $250. |
89 | South Carolina | 5.00% | 4.5% for banks; 6% for savings and loans. |
90 | South Dakota | None | 6%-0.25% on a bank's net income. Minimum tax is $200 per location (banks). |
91 | Tennessee | 6.00% | |
92 | Texas | None | |
93 | Utah | 5.00% | Minimum tax is $100. |
94 | Vermont | 7.0% > $0 | Minimum tax is $250. |
95 | 8.1 > 10K | ||
96 | 9.2 > 25K | ||
97 | 9.75 > 250K | ||
98 | Virginia | 6.00% | |
99 | Washington | None | Gross receipts tax. The 20 different rates range from 0.011%-5.029%depending on the type of business activity. |
100 | West Virginia | 9.00% | |
101 | Wisconsin | 7.90% | |
102 | Wyoming | None | |
103 | District of Columbia | 9.50% | Includes 5% surtax. Minimum tax is $100. |
104 | |||
105 | Note: Bold Italics indicate noteworthy tax changes during 2001. | ||
106 | Sources: Tax Foundation; Each state's tax forms and instructions; Commerce Clearing House; Federation of Tax Administrators. | ||
107 | |||
108 | |||
109 | |||
110 | Tax Foundation | ||
111 | Ph: (202) 464-6200 | ||
112 | www.taxfoundation.org | ||
1 | State Corporate Income Tax Rates | ||
|---|---|---|---|
2 | As of January , 2002 | ||
3 | (2002's noteworthy changes in bold italics) | ||
4 | |||
5 | State | Tax Rates and Brackets | Special Rates or Notes |
6 | Alabama | 5% > $0 | 6% on financial institutions (6.5% after January 1, 2001); federal deductibility. |
7 | Alaska | 1% > $0 | |
8 | 2% > $9,999 | ||
9 | 3% > $19,999 | ||
10 | 4% > $29,999 | ||
11 | 5% > $39,999 | ||
12 | 6% > $49,999 | ||
13 | 7% > $59,999 | ||
14 | 8% > $69,999 | ||
15 | 9% > $79,999 | ||
16 | 9.4% > $89,999 | ||
17 | Arizona | 6.968% > $0 | Minimum tax is $50. |
18 | Arkansas | 1% > $3K | For net incomes exceeding $100K, 6.5% of entire net income. |
19 | 2% > $3K | ||
20 | 3% > $6K | ||
21 | 5% > $11K; | ||
22 | 6% > $25K | ||
23 | 6.5% > $100K | ||
24 | California | 8.84% > $0 | 10.84% on financial institutions. 6.65% alternative minimum tax rate (2% for financial institutions). Minimum tax is $800. |
25 | Colorado | 4.63% > $0 | |
26 | Connecticut | 7.5% > $0 | |
27 | Delaware | 8.7% > $0 | |
28 | Florida | 5.5% > $0 | 3.3% alternative minimum rate. |
29 | Georgia | 6% > $0 | |
30 | Hawaii | 4.4% > $0 | 4% capital gains rate, 7.92% on financial institutions. |
31 | 5.4% > $25K | ||
32 | 6.4% > $100K | ||
33 | Idaho | 7.6% > $0 | Minimum tax is $20. |
34 | Illinois | 4.8% > $0 | 2.5% income replacement tax. |
35 | Indiana | 3.4% > $0 | 4.5% on supplemental income. |
36 | Iowa | 6% > $0 | 5% on financial institutions; 7.2% alternative minimum rate; 50% federal deductibility. |
37 | 8% > $25K | ||
38 | 10% > $100K | ||
39 | 12.0 %> $250K | ||
40 | Kansas | 4% > $0 | 3.35% surtax over $50,000; Banks 2.25% plus 2.125% surtax over $25K. |
41 | Kentucky | 4% > $0 | |
42 | 5% > $25K | ||
43 | 6% > $50K | ||
44 | 7% > $100K | ||
45 | 8.25 > $250K | ||
46 | Louisiana | 4% > $0K | Federal deductibility. |
47 | 5% > $25K | ||
48 | 6% > $50K | ||
49 | 5% > $100K | ||
50 | 8% > $200K | ||
51 | Maine | 3.5% > $0 | 27% of federal alternative minimum tax liability. |
52 | 7.93% > $25K | ||
53 | 8.33% > $75K | ||
54 | 8.93% > 250K | ||
55 | Maryland | 7% > $0 | |
56 | Massachusetts | 9.5% > $0 | Franchise tax built into rate (.26% per $1,000 of income); 10.5% on financial institutions;10.91% on savings and loan associations. Minimum tax is $456. |
57 | Michigan | 2% > $0 | Single Business Tax (SBT) applies to gross receipts. Must file with gross receipts over $250K. $45K deductible. By law the SBT rate drops 0.1 percent annually from its 1998 rate of 2.3 percent until phased out, but if the Budget Stabilization Fund falls below $250 million for a fiscal year, the next calendar year’s reduction is deferred. |
58 | Minnesota | 9.8% > $0 | 5.8% alternative minimum tax rate. A minimum tax is levied based on Minnesota property, payroll and sales. |
59 | Mississippi | 3% > $0 | Franchise tax of $2.50 per $1,000 with minimum tax of $25. |
60 | 4% > $5K | ||
61 | 5% > $10K | ||
62 | Missouri | 6.25% > $0 | 7% on financial institution; 50% of federal tax deductible. |
63 | Montana | 6.75% > $0 | 7% for corporations filing under a water’s edge election. Minimum tax is $50. Minimum tax for small business corporations is $10. |
64 | Nebraska | 5.58% > $0 | |
65 | 7.81% > $50K | ||
66 | Nevada | None | |
67 | New Hampshire | 8.5% > $0 | Must file business profits tax if gross receipts exceed $50K. A business with $100K in gross receipts or $50K wages, interest, and dividends is subject to 0.5% business enterprise tax on total value of wages, interest, and dividends, in which case BPT liability is reduced by sum of BET liability. |
68 | New Jersey | 8.5% > $0 | Rate is 7.5% if entire net income is less than $100K. Minimum tax $200. |
69 | New Mexico | 4.8% > $0 | |
70 | 6.4% > $500K | ||
71 | 7.6%> $1,000K | ||
72 | New York | 7.5% > $0 | The rate fell to 7.5% after June 30, 2001. 2.5% surtax rate. |
73 | North Carolina | 6.9% > $0 | |
74 | North Dakota | 3% > $0 | Financial institutions: 5% + 2% surtax rate; federal deductibility. Minimum tax $50. |
75 | 4.5% > $3K | ||
76 | 6% > $8K | ||
77 | 7.5% > $20K | ||
78 | 9% > $30K | ||
79 | 10.5% > $50K | ||
80 | Ohio | 5.1% > $0 | For financial institutions, 0.015 times value of stock. Minimum tax is $50. |
81 | 8.5 > $50K | ||
82 | Oklahoma | 6% > $0 | |
83 | Oregon | 6.6% > $0 | Minimum tax is $10. |
84 | Pennsylvania | 10% > $0 | Imposes a "Capital Stock and Franchise Tax." |
85 | Rhode Island | 9% > $0 | Minimum tax is $250. |
86 | South Carolina | 5% > $0 | 4.5% for banks; 6% for savings and loans. |
87 | South Dakota | None | 6%-0.25% on a bank’s net income. Minimum tax is $200 per location (banks). |
88 | Tennessee | 6% > $0 | |
89 | Texas | None | |
90 | Utah | 5% > $0 | Minimum tax is $100. |
91 | Vermont | 7% > $0 | Minimum tax is $250. |
92 | 8.1% > $10K | ||
93 | 9.2% > $25K | ||
94 | 9.75 > $100K | ||
95 | Virginia | 6% > $0 | |
96 | Washington | None | Gross receipts tax: 20 rates (0.011% to .029%) depending on type of business. |
97 | West Virginia | 9% > $0 | |
98 | Wisconsin | 7.9% > $0 | |
99 | Wyoming | None | |
100 | District of Columbia | 9.5% > $0 | Includes 5% surtax. Minimum tax is $100. |
101 | |||
102 | Note: Bold Italics indicate noteworthy tax changes during 2001. | ||
103 | Sources: Tax Foundation; Each state's tax forms and instructions; Commerce Clearing House; Federation of Tax Administrators. | ||
104 | |||
105 | |||
106 | Tax Foundation | ||
107 | Ph: (202) 464-6200 | ||
108 | www.taxfoundation.org | ||
1 | State Corporate Income Tax Rates | |||||
|---|---|---|---|---|---|---|
2 | As of January 1, 2001 | |||||
3 | (2001's noteworthy changes in bold italics) | |||||
4 | ||||||
5 | ||||||
6 | State | Rates | No. of Brackets | Low Bracket | High Bracket | Special Rates or Notes |
7 | (Under$) | (Over$) | ||||
8 | Alabama | 5 | 1 | n.a. | n.a. | 6% on financial institutions (6.5% after January 1, 2001); Federal deductibility. |
9 | Alaska | 1.0-9.4 | 10 | $10,000 | $90,000 | |
10 | Arizona | 7.968 | 1 | n.a. | n.a. | Minimum tax is $50. In 2001, rate will fall to 6.968%. |
11 | Arkansas | 1.0-6.5 | 6 | 3,000 | 100,000 | Corporations with net incomes exceeding $100,000, 6.5% of entire net income. |
12 | California | 8.84 | 1 | n.a. | n.a. | 10.84% on financial institutions. 6.65% alternative minimum tax rate (2% for financial institutions). Minimum tax is $800. |
13 | Colorado | 4.63 | 1 | n.a. | n.a. | |
14 | Connecticut | 7.5 | 1 | n.a. | n.a. | |
15 | Delaware | 8.7 | 1 | n.a. | n.a. | |
16 | Florida | 5.5 | 1 | n.a. | n.a. | 3.3% alternative minimum rate. |
17 | Georgia | 6 | 1 | n.a. | n.a. | |
18 | Hawaii | 4.4-6.4 | 3 | 25,000 | 100,000 | 4% capital gains rate, 7.92% on financial institutions. |
19 | Idaho | 8 | 1 | n.a. | n.a. | Minimum tax is $20. |
20 | Illinois | 4.8 | 1 | n.a. | n.a. | 2.5% income replacement tax. |
21 | Indiana | 3.4 | 1 | n.a. | n.a. | 4.5% on supplemental income. |
22 | Iowa | 6.0-12.0 | 4 | 25,000 | 250,000 | 5% on financial institutions; 7.2%alternative minimum rate; 50% federal deductibility. |
23 | Kansas | 4 | 1 | n.a. | n.a. | 3.35% surtax over $50,000; Banks 2.25% plus 2.125% surtax over $25,000. |
24 | Kentucky | 4.0-8.25 | 5 | 25,000 | 250,000 | |
25 | Louisiana | 4.0-8.0 | 5 | 25,000 | 200,000 | Federal deductibility. |
26 | Maine | 3.5-8.93 | 4 | 25,000 | 250,000 | 27% of federal alternative minimum tax liability. |
27 | Maryland | 7 | 1 | n.a. | n.a. | |
28 | Massachusetts | 9.5 | 1 | n.a. | n.a. | Franchise tax built into rate (.26% per $1,000 of income); 10.5% on financial institutions; 10.91% on savings and loan associations. Minimum tax is $456. |
29 | Michigan | 2.1 | 2 | 45,000 | 45,000 | Modified VAT. Rate applies to gross receipts. Must file only with gross receipts over $250,000. $45,000 deductible. The SBT tax rate will continue to be reduced by 0.1 percent annually from its 1998 rate of 2.3 percent. The tax rate reduction, which began January 1, 1999, will continue until the SBT is completely phased out over 23 years. |
30 | Minnesota | 9.8 | 1 | n.a. | n.a. | 5.8% alternative minimum tax rate. A minimum tax is levied based on Minnesota property, payroll and sales. |
31 | Mississippi | 3.0-5.0 | 3 | 5,000 | 10,000 | Franchise tax of $2.50 per $1,000 with minimum tax of $25. |
32 | Missouri | 6.25 | 1 | n.a. | n.a. | 7% on financial institution; 50% of federal tax deductible. |
33 | Montana | 6.75 | 1 | n.a. | n.a. | 7% for corporations filing under a water's edge election. Minimum tax is $50. Minimum tax for small business corporations is $10. |
34 | Nebraska | 5.58-7.81 | 2 | 50,000 | 50,000 | |
35 | Nevada | None | n.a. | n.a. | n.a. | |
36 | New Hampshire | 8 | 1 | n.a. | n.a. | Must file business profits tax only with gross receipts over $50,000. Businesses with over $100,000 in gross receipts or wages, interest, and dividends over $50,000 are subject to 0.5% business enterprise tax on total value of wages, interest, and dividends. Such business' BPT liability is reduced by sum of BET liability. |
37 | New Jersey | 9 | 1 | n.a. | n.a. | Corporations with entire net income of less that $100,000 pay 7.5%. Minimum tax is $200. |
38 | New Mexico | 4.8-7.6 | 3 | 500,000 | 1,000,000 | |
39 | New York | 8 | 1 | n.a. | n.a. | After June 30, 2000, the tax rate will drop from 8.5% to 8.0%. 2.5% surtax rate. |
40 | North Carolina | 6.9 | 1 | n.a. | n.a. | |
41 | North Dakota | 3.0-10.5 | 6 | 3,000 | 50,000 | 5% for financial institutions plus 2% surtax rate; Federal deductibility. Minimum tax is $50. |
42 | Ohio | 5.1-8.5 | 2 | 50,000 | 50,000 | For financial institutions, 0.015 times value of stock. Minimum tax is $50. |
43 | Oklahoma | 6 | 1 | n.a. | n.a. | |
44 | Oregon | 6.6 | 1 | n.a. | n.a. | Minimum tax is $10. |
45 | Pennsylvania | 9.99 | 1 | n.a. | n.a. | Imposes a "Capital Stock and Franchise Tax." |
46 | Rhode Island | 9 | 1 | n.a. | n.a. | Minimum tax is $250. |
47 | South Carolina | 5 | 1 | n.a. | n.a. | 4.5% for banks; 6% for savings and loans. |
48 | South Dakota | None | n.a. | n.a. | n.a. | 6%-0.25% on a bank's net income. Minimum tax is $200 per location (banks). |
49 | Tennessee | 6 | 1 | n.a. | n.a. | |
50 | Texas | None | n.a. | n.a. | n.a. | |
51 | Utah | 5 | 1 | n.a. | n.a. | Minimum tax is $100. |
52 | Vermont | 7.0-9.75 | 4 | 10,000 | 250,000 | Minimum tax is $250. |
53 | Virginia | 6 | 1 | n.a. | n.a. | |
54 | Washington | None | n.a. | n.a. | n.a. | Gross receipts tax. The 20 different rates range from 0.011%-5.029% |
55 | depending on the type of business activity. | |||||
56 | West Virginia | 9 | 1 | n.a. | n.a. | |
57 | Wisconsin | 7.9 | 1 | n.a. | n.a. | |
58 | Wyoming | None | n.a. | n.a. | n.a. | |
59 | District of Columbia | 9.975 | 1 | n.a. | n.a. | Includes 5% surtax. Minimum tax is $100. |
60 | ||||||
61 | Note: Bold, Italics indicate noteworthy tax changes during 2000. | |||||
62 | Sources: Tax Foundation; Respective state tax forms and instructions; Commerce Clearing House; Federation of Tax Administrators. | |||||
63 | ||||||
64 | ||||||
65 | Tax Foundation | |||||
66 | Ph: (202) 464-6200 | |||||
67 | Fax: (202) 464-6201 | |||||
68 | www.taxfoundation.org | |||||
1 | State Corporate Income Tax Rates | |||||
|---|---|---|---|---|---|---|
2 | As of December 31, 2000 | |||||
3 | (2000's noteworthy changes in bold italics) | |||||
4 | ||||||
5 | ||||||
6 | State | Rates | No. of Brackets | Low Bracket | High Bracket | Special Rates or Notes |
7 | (Under$) | (Over$) | ||||
8 | Alabama | 5.00% | 1 | n.a. | n.a. | 6% on financial institutions; Federal deductibility. |
9 | Alaska | 1.0–9.4 | 10 | $10,000 | $90,000 | |
10 | Arizona | 8 | 1 | n.a. | n.a. | Minimum tax is $50. |
11 | Arkansas | 1.0–6.5 | 6 | 3,000 | 100,000 | Corporations with net incomes exceeding $100,000, 6.5% of entire net income. |
12 | California | 8.84 | 1 | n.a. | n.a. | 10.84% on financial institutions. 6.65% alternative minimum tax rate (2% for financial institutions. Minimum tax is $800. |
13 | Colorado | 4.75% | 1 | n.a. | n.a. | |
14 | Connecticut | 8.5 | 1 | n.a. | n.a. | Tax rate scheduled to fall to 7.5% after 1999. |
15 | Delaware | 8.7 | 1 | n.a. | n.a. | |
16 | Florida | 5.5 | 1 | n.a. | n.a. | 3.3% alternative minimum rate. |
17 | Georgia | 6 | 1 | n.a. | n.a. | |
18 | Hawaii | 4.4–6.4% | 3 | $25,000 | $100,000 | 4% capital gains rate, 7.92% on financial institutions. |
19 | Idaho | 8 | 1 | n.a. | n.a. | Minimum tax is $20. |
20 | Illinois | 4.8 | 1 | n.a. | n.a. | 2.5% income replacement tax. |
21 | Indiana | 3.4 | 1 | n.a. | n.a. | 4.5% on supplemental income. |
22 | Iowa | 6.0–12.0 | 4 | 25,000 | 250,000 | 5% on financial institutions; 7.2% alternative minimum rate; 50% federal deductibility. |
23 | Kansas | 4.00% | 1 | n.a. | n.a. | 3.35% surtax over $50,000; Banks 2.25% plus 2.125% surtax over $25,000. |
24 | Kentucky | 4.0–8.25 | 5 | $25,000 | $250,000 | |
25 | Louisiana | 4.0–8.0 | 5 | 25,000 | 200,000 | Federal deductibility. |
26 | Maine | 3.5–8.93 | 4 | 25,000 | 250,000 | 27% of federal alternative minimum tax liability. |
27 | Maryland | 7 | 1 | n.a. | n.a. | |
28 | Massachusetts | 9.50% | 1 | n.a. | n.a. | Franchise tax built into rate (.26% per $1,000 of income); 10.5% on financial institutions; 10.91% on savings and loan associations. Minimum tax is $456. |
29 | Michigan | 0.0–2.2 | 2 | $45,000 | $45,000 | Modified VAT. Rate applies to gross receipts. Must file only with gross receipts over $250,000. $45,000 deductible. |
30 | Minnesota | 9.8 | 1 | n.a. | n.a. | 5.8% alternative minimum tax rate. A minimum tax is levied based on Minnesota property, payroll and sales. |
31 | Mississippi | 3.0–5.0 | 3 | 5,000 | 10,000 | |
32 | Missouri | 6.25 | 1 | n.a. | n.a. | 7% on financial institution; 50% of federal tax deductible. |
33 | Montana | 6.75% | 1 | n.a. | n.a. | 7% for corporations filing under a water’s edge election. Minimum tax is $50. Minimum tax for small business corporations is $10. |
34 | Nebraska | 5.58–7.81 | 2 | $50,000 | $50,000 | |
35 | Nevada | None | n.a. | n.a. | n.a. | |
36 | New Hampshire | 7 | 1 | n.a. | n.a. | Must file business profits tax only with gross receipts over $50,000. Businesses with over $100,000 in gross receipts or wages, interest, and dividends over $50,000 are subject to 0.25% business enterprise tax on total value of wages, interest, and dividends. Such business’ BPT liability is reduced by sum of BET liability. |
37 | New Jersey | 9 | 1 | n.a. | n.a. | Corporations with entire net income of less that $100,000 pay 7.5%. Minimum tax is $200. |
38 | New Mexico | 4.8–7.6% | 3 | $500,000 | $1,000,000 | |
39 | New York | 9 | 1 | n.a. | n.a. | 2.5% surtax rate. |
40 | North Carolina | 7 | 1 | n.a. | n.a. | Tax rate scheduled to fall to 6.9% after 1999. |
41 | North Dakota | 3.0–10.5 | 6 | 3,000 | 50,000 | 5% for financial institutions plus 2% surtax rate; Federal deductibility. Minimum tax is $50. |
42 | Ohio | 5.1–8.5 | 2 | 50,000 | 50,000 | For financial institutions, 0.015 times value of stock. Minimum tax is $50. |
43 | Oklahoma | 6% | 1 | n.a. | n.a. | |
44 | Oregon | 6.6 | 1 | n.a. | n.a. | Minimum tax is $10. |
45 | Pennsylvania | 9.99 | 1 | n.a. | n.a. | Imposes a "Capital Stock and Franchise Tax." |
46 | Rhode Island | 9 | 1 | n.a. | n.a. | Minimum tax is $250. |
47 | South Carolina | 5 | 1 | n.a. | n.a. | 4.5% for banks; 6% for savings and loans. |
48 | South Dakota | None | n.a. | n.a. | n.a. | 6%–1% on a bank’s net income. Minimum tax is $200 per location (banks). |
49 | Tennessee | 6.00% | 1 | n.a. | n.a. | |
50 | Texas | None | n.a. | n.a. | n.a. | |
51 | Utah | 5 | 1 | n.a. | n.a. | Minimum tax is $100. |
52 | Vermont | 7.0–9.75 | 4 | $10,000 | $250,000 | Minimum tax is $250. |
53 | Virginia | 6.00% | 1 | n.a. | n.a. | |
54 | Washington | None | n.a. | n.a. | n.a. | Gross receipts tax. The 20 different rates range from 0.011%–5.029% depending on the type of business activity. |
55 | West Virginia | 9 | 1 | n.a. | n.a. | |
56 | Wisconsin | 7.9 | 1 | n.a. | n.a. | Temporary recycling surcharge of 2.75% of gross tax applies only to taxable years that end before April 1, 1999. |
57 | Wyoming | None | n.a. | n.a. | n.a. | |
58 | District of Columbia | 9.98% | 1 | n.a. | n.a. | Includes 5% surtax. Minimum tax is $100. |
59 | ||||||
60 | Note: Bold Italics indicate noteworthy tax changes during 2001. | |||||
61 | Sources: Tax Foundation; Each state's tax forms and instructions; Commerce Clearing House; Federation of Tax Administrators. | |||||
62 | ||||||
63 | Tax Foundation | |||||
64 | Ph: (202) 464-6200 | |||||
65 | www.taxfoundation.org | |||||