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Corporate income tax
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Corporate income tax is the tax levied by a state (or other government entity) on a company's profits. Of the 50 states and Washington, D.C., only four states do not levy a corporate income tax. Tax rates vary significantly from state to state, with some using a flat rate to calculate the tax and others using a bracket system that varies the rate according to the company's income.[1]
According to David Brunori, corporate income taxes comprise less than 6 percent of tax revenue collected by states. Revenues collected from corporate income tax have declined steadily in recent years, from a high of 9.5 percent of total state tax collections in 1977 to the present low of approximately 5 percent.[2]
Corporate income tax rates
2017
The table below compares the corporate income tax rates of the 50 states in 2017.[3][4]
| Corporate income tax rates, 2016 | ||||
|---|---|---|---|---|
| State | Tax rate | Brackets | Number of brackets | |
| Lowest | Highest | |||
| Alabama | 6.50% | Flat Rate | 1 | |
| Alaska | 0% to 9.40% | $25,000 | $222,000 | 10 |
| Arizona | 5.50% | Flat Rate | 1 | |
| Arkansas | 1.00% to 6.5% | $3,000 | $100,000 | 6 |
| California | 8.84% | Flat Rate | 1 | |
| Colorado | 4.63% | Flat Rate | 1 | |
| Connecticut | 9.00% | Flat Rate | 1 | |
| Delaware | 8.70% | Flat Rate | 1 | |
| Florida | 5.50% | Flat Rate | 1 | |
| Georgia | 6.00% | Flat Rate | 1 | |
| Hawaii | 4.40% to 6.4% | $25,000 | $100,000 | 3 |
| Idaho | 7.40% | Flat Rate | 1 | |
| Illinois | 7.75% | Flat Rate | 1 | |
| Indiana | 6.50% | Flat Rate | 1 | |
| Iowa | 6.00% to 12.00% | $25,000 | $250,000 | 4 |
| Kansas | 4.00% to 7.00% | $50,000 | $50,000 | 2 |
| Kentucky | 4.00% to 6.00% | $50,000 | $100,000 | 3 |
| Louisiana | 4.00% to 8.00% | $25,000 | $200,000 | 5 |
| Maine | 3.50% to 8.93% | $25,000 | $250,000 | 4 |
| Maryland | 8.25% | Flat Rate | 1 | |
| Massachusetts | 8.00% | Flat Rate | 1 | |
| Michigan | 6.00% | Flat Rate | 1 | |
| Minnesota | 9.80% | Flat Rate | 1 | |
| Mississippi | 3.00% to 5.00% | $5,000 | $10,000 | 3 |
| Missouri | 6.25% | Flat Rate | 1 | |
| Montana | 6.75% | Flat Rate | 1 | |
| Nebraska | 5.58% to 7.81% | $100,000 | $100,000 | 2 |
| Nevada | No corporate income tax | |||
| New Hampshire | 8.50% | Flat Rate | 1 | |
| New Jersey | 6.50% to 9.00% | $50,000 | $100,000 | 3 |
| New Mexico | 4.80% to 6.60% | $500,000 | $1,000,000 | 3 |
| New York | 6.50% | Flat Rate | 1 | |
| North Carolina | 4.00% | Flat Rate | 1 | |
| North Dakota | 1.41% to 4.31% | $25,000 | $50,000 | |
| Ohio | No corporate income tax | |||
| Oklahoma | 6.00% | Flat Rate | 1 | |
| Oregon | 6.60% to 7.60% | $1,000,000 | $1,000,000 | 2 |
| Pennsylvania | 9.99% | Flat Rate | 1 | |
| Rhode Island | 7.00% | Flat Rate | 1 | |
| South Carolina | 5.00% | Flat Rate | 1 | |
| South Dakota | No corporate income tax | |||
| Tennessee | 6.50% | Flat Rate | 1 | |
| Texas | No corporate income tax | |||
| Utah | 5.00% | Flat Rate | 1 | |
| Vermont | 6.00% to 8.50% | $10,000 | $25,000 | 3 |
| Virginia | 6.00% | Flat Rate | 1 | |
| Washington | No corporate income tax | |||
| West Virginia | 6.50% | Flat Rate | 1 | |
| Wisconsin | 7.90% | Flat Rate | 1 | |
| Wyoming | No corporate income tax | |||
| Note: For complete notes and annotations, please see the source below. Source: Tax Foundation, "State Corporate Income Tax Rates and Brackets for 2015," accessed October 26, 2017 | ||||
2015
The table below lists the corporate income tax rates for all 50 states. Of the 50 states (and Washington, D.C.), only three do not collect a corporate income tax. For the remaining states that do collect the tax, rates range significantly, as do bracket structures.[4]
| Corporate income tax rates, 2015 | ||||
|---|---|---|---|---|
| State | Tax rate | Brackets | Number of brackets | |
| Lowest | Highest | |||
| Alabama | 6.5% | Flat rate | 1 | |
| Alaska | 0 - 9.4% | $25,000.00 | $222,000.00 | 10 |
| Arizona | 6% | Flat rate | 1 | |
| Arkansas | 1.0 - 6.5% | $3,000.00 | $100,000.00 | 6 |
| California | 8.84% | Flat rate | 1 | |
| Colorado | 4.63% | Flat rate | 1 | |
| Connecticut | 9% | Flat rate | 1 | |
| Delaware | 8.7% | Flat rate | 1 | |
| District of Columbia | 9.975% | Flat rate | 1 | |
| Florida | 5.5% | Flat rate | 1 | |
| Georgia | 6% | Flat rate | 1 | |
| Hawaii | 4.4 - 6.4% | $25,000.00 | $100,00.00 | 3 |
| Idaho | 7.4% | Flat rate | 1 | |
| Illinois | 9.5% | Flat rate | 1 | |
| Indiana | 8% | Flat rate | 1 | |
| Iowa | 6.0 - 12.0% | $25,000.00 | $250,00.00 | 4 |
| Kansas | 4% | $50,000 | 2 | |
| Kentucky | 4.0 - 6.0% | $50,000.00 | $100,000.00 | 3 |
| Louisiana | 4.0 - 8.0% | $25,000.00 | $200,000.00 | 5 |
| Maine | 3.5 - 8.93% | $25,000.00 | $250,000.00 | 4 |
| Maryland | 8.25% | Flat rate | 1 | |
| Massachusetts | 8% | Flat rate | 1 | |
| Michigan | 6% | Flat rate | 1 | |
| Minnesota | 9.8% | Flat rate | 1 | |
| Mississippi | 3.0 - 5.0% | $5,000.00 | $10,000.00 | 3 |
| Missouri | 6.25% | Flat rate | 1 | |
| Montana | 6.75% | Flat rate | 1 | |
| Nebraska | 5.58 - 7.81% | $100,000.00 | 2 | |
| Nevada | No corporate income tax | |||
| New Hampshire | 8.5% | Flat rate | 1 | |
| New Jersey | 6.5 - 9% | $50,000 | $100,000 | 3 |
| New Mexico | 4.8 - 6.9% | $500,000.00 | $1,000,000.00 | 3 |
| New York | 7.1% | Flat rate | 1 | |
| North Carolina | 5% | Flat rate | 1 | |
| North Dakota | 1.48 - 4.53% | $25,000.00 | $50,000 | 3 |
| Ohio | See note | |||
| Oklahoma | 6% | Flat rate | 1 | |
| Oregon | 6.6 - 7.6% | $1,000,000 | 2 | |
| Pennsylvania | 9.99% | Flat rate | 1 | |
| Rhode Island | 7% | Flat rate | 1 | |
| South Carolina | 5% | Flat rate | 1 | |
| South Dakota | No corporate income tax | |||
| Tennessee | 6.5% | Flat rate | 1 | |
| Texas | See note | |||
| Utah | 5% | Flat rate | ||
| Vermont | 6.0 - 8.5% | $10,000.00 | $25,000.00 | 3 |
| Virginia | 6% | Flat rate | 1 | |
| Washington | See note | |||
| West Virginia | 6.5% | Flat rate | 1 | |
| Wisconsin | 7.9% | Flat rate | 1 | |
| Wyoming | No corporate income tax | |||
| Note: "Ohio, Texas, and Washington do not have corporate income taxes but do have gross receipts taxes with rates not strictly comparable to corporate income tax rates. Delaware and Virginia have gross receipts taxes in addition to their corporate income taxes." For complete notes and annotations, please see the source below. Source: Tax Policy Center, "State Corporate Income Tax Rates 2002-2008, 2010-2014," June 11, 2014 | ||||
2014
The table below lists the corporate income tax rates for all 50 states in 2014. Of the 50 states (and Washington, D.C.), only four did not collect a corporate income tax. For the remaining states that did collect the tax, rates ranged significantly, as did bracket structures.[4]
| Corporate income tax rates, 2014 | ||||
|---|---|---|---|---|
| State | Tax rate | Brackets | Number of brackets | |
| Lowest | Highest | |||
| Alabama | 6.5% | Flat rate | 1 | |
| Alaska | 0 - 9.4% | $25,000.00 | $222,000.00 | 10 |
| Arizona | 6.5% | Flat rate | 1 | |
| Arkansas | 1.0 - 6.5% | $3,000.00 | $100,001.00 | 6 |
| California | 8.84% | Flat rate | 1 | |
| Colorado | 4.63% | Flat rate | 1 | |
| Connecticut | 7.5% | Flat rate | 1 | |
| Delaware | 8.7% | Flat rate | 1 | |
| District of Columbia | 9.975% | Flat rate | 1 | |
| Florida | 5.5% | Flat rate | 1 | |
| Georgia | 6% | Flat rate | 1 | |
| Hawaii | 4.4 - 6.4% | $25,000.00 | $100,001.00 | 3 |
| Idaho | 7.4% | Flat rate | 1 | |
| Illinois | 9.5% | Flat rate | 1 | |
| Indiana | 8% | Flat rate | 1 | |
| Iowa | 6.0 - 12.0% | $25,000.00 | $250,001.00 | 4 |
| Kansas | 4% | Flat rate | 1 | |
| Kentucky | 4.0 - 6.0% | $50,000.00 | $100,001.00 | 3 |
| Louisiana | 4.0 - 8.0% | $25,000.00 | $200,001.00 | 5 |
| Maine | 3.5 - 8.93% | $25,000.00 | $250,000.00 | 4 |
| Maryland | 8.25% | Flat rate | 1 | |
| Massachusetts | 8% | Flat rate | 1 | |
| Michigan | 6% | Flat rate | 1 | |
| Minnesota | 9.8% | Flat rate | 1 | |
| Mississippi | 3.0 - 5.0% | $5,000.00 | $10,001.00 | 3 |
| Missouri | 6.25% | Flat rate | 1 | |
| Montana | 6.75% | Flat rate | 1 | |
| Nebraska | 5.58 - 7.81% | $100,000.00 | 2 | |
| Nevada | No corporate income tax | |||
| New Hampshire | 8.5% | Flat rate | 1 | |
| New Jersey | 9% | Flat rate | 1 | |
| New Mexico | 4.8 - 7.3% | $500,000.00 | $1,000,000.00 | 3 |
| New York | 7.1% | Flat rate | 1 | |
| North Carolina | 6% | Flat rate | 1 | |
| North Dakota | 1.48 - 4.53% | $25,000.00 | $50,001.00 | 3 |
| Ohio | % | |||
| Oklahoma | 6% | Flat rate | 1 | |
| Oregon | 6.6 - 7.6% | $10,000,000.00 | 2 | |
| Pennsylvania | 9.99% | Flat rate | 1 | |
| Rhode Island | 9% | Flat rate | 1 | |
| South Carolina | 5% | Flat rate | 1 | |
| South Dakota | No corporate income tax | |||
| Tennessee | 6.5% | Flat rate | 1 | |
| Texas | % | |||
| Utah | 5% | Flat rate | ||
| Vermont | 6.0 - 8.5% | $10,000.00 | $25,000.00 | 3 |
| Virginia | 6% | Flat rate | 1 | |
| Washington | No corporate income tax | |||
| West Virginia | 6.5% | Flat rate | 1 | |
| Wisconsin | 7.9% | Flat rate | 1 | |
| Wyoming | No corporate income tax | |||
| Note: For complete notes and annotations, please see the source below. Source: Tax Policy Center, "State Corporate Income Tax Rates 2002-2008, 2010-2014," June 11, 2014 | ||||
See also
External links
Footnotes
- ↑ Investopedia, "Corporate Tax," accessed September 24, 2014
- ↑ Brunori, D. (2011). State Tax Policy: A Political Perspective. Washington, D.C.: The Urban Institute Press
- ↑ Investopedia, "Corporate Tax," accessed September 24, 2014
- ↑ 4.0 4.1 4.2 Tax Foundation, "State Corporate Income Tax Rates and Brackets for 2015," accessed October 7, 2015 Cite error: Invalid
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