Introduction
Corporations are taxed separately from individuals under state and federal income tax schemes. Typically, the amount of money a corporation brings in is multiplied by a percentage. Some sets have a progressive corporate income tax that changes based on the amount a corporation made. Corporate taxes made up about 4.93% of state taxes levied and 2.26% of state revenue in 2020.
There are two types of corporate income tax rates: federal and state income tax rates. Presently, the federal corporate income tax rate is 21%; it was lowered from 35% in the Tax Cuts and Jobs Act of 2017. States may additionally levy taxes on corporate income, but are under no obligation to do so. Businesses are required to pay at both the rates set by the federal and state government.
Most of the debate surrounding corporate income taxation regards where the rate should be set. Those in favor of little to no corporate income tax argue that businesses will reinvest the money they would have otherwise paid to the state, and that money can be taxed (most often through sales taxes). Opponents, though, argue corporations should pay their fair share, just as individuals.
Learn for yourself which states have the highest corporate income tax rates by analyzing the data in the charts.
| # | State | Corporate Tax Rate | Capital Gains Tax Rate | Property Tax Rate | State-Local Tax Burden |
|---|---|---|---|---|---|
| 1 | New Jersey | 11.5% | 10.75% | 2.13% | 13.2% |
| 2 | Minnesota | 9.8% | 9.85% | 1.05% | 12.1% |
| 3 | Illinois | 9.5% | 4.95% | 1.97% | 12.9% |
| 4 | Alaska | 9.4% | 0% | 0.98% | 4.6% |
| 5 | Pennsylvania | 9% | 3.07% | 1.43% | 10.6% |
| 6 | Maine | 8.9% | 7.15% | 1.2% | 12.4% |
| 7 | California | 8.8% | 13.3% | 0.7% | 13.5% |
| 8 | Delaware | 8.7% | 6.6% | 0.59% | 12.4% |
| 9 | Vermont | 8.5% | 8.75% | 1.76% | 13.6% |
| 10 | Iowa | 8.4% | 8.53% | 1.43% | 11.2% |
| 11 | District of Columbia | 8.3% | 5.75% | 12% | |
| 12 | Maryland | 8.3% | 5.75% | 1.01% | 11.3% |
| 13 | Massachusetts | 8% | 5% | 1.08% | 11.5% |
| 14 | Wisconsin | 7.9% | 7.65% | 1.53% | 10.9% |
| 15 | Oregon | 7.6% | 9.9% | 0.91% | 10.8% |
| 16 | Connecticut | 7.5% | 6.99% | 1.73% | 15.4% |
| 17 | Louisiana | 7.5% | 4.25% | 0.51% | 9.1% |
| 18 | New Hampshire | 7.5% | 0% | 1.89% | 9.6% |
| 19 | Nebraska | 7.3% | 6.84% | 1.54% | 11.5% |
| 20 | New York | 7.3% | 8.82% | 1.3% | 15.9% |
| 21 | Kansas | 7% | 5.7% | 1.28% | 11.2% |
| 22 | Rhode Island | 7% | 5.99% | 1.37% | 11.4% |
| 23 | Montana | 6.8% | 4.9% | 0.74% | 10.5% |
| 24 | Alabama | 6.5% | 5% | 0.37% | 9.8% |
| 25 | Tennessee | 6.5% | 0% | 0.63% | 7.6% |
| 26 | West Virginia | 6.5% | 6.5% | 0.53% | 9.8% |
| 27 | Hawaii | 6.4% | 7.25% | 0.31% | 14.1% |
| 28 | Michigan | 6% | 4.25% | 1.53% | 8.6% |
| 29 | Virginia | 6% | 5.75% | 0.84% | 12.5% |
| 30 | New Mexico | 5.9% | 5.9% | 0.59% | 10.2% |
| 31 | Georgia | 5.8% | 5.75% | 0.87% | 8.9% |
| 32 | Idaho | 5.8% | 6.93% | 0.65% | 10.7% |
| 33 | Florida | 5.5% | 0% | 0.86% | 9.1% |
| 34 | Arkansas | 5.3% | 5.5% | 0.61% | 10.2% |
| 35 | Kentucky | 5% | 5% | 0.78% | 9.6% |
| 36 | Mississippi | 5% | 5% | 0.63% | 9.8% |
| 37 | South Carolina | 5% | 7% | 0.53% | 8.9% |
| 38 | Arizona | 4.9% | 4.5% | 0.6% | 9.5% |
| 39 | Indiana | 4.9% | 3.23% | 0.81% | 9.3% |
| 40 | Utah | 4.9% | 4.95% | 0.56% | 12.1% |
| 41 | Colorado | 4.6% | 4.55% | 0.52% | 9.7% |
| 42 | North Dakota | 4.3% | 2.9% | 0.88% | 8.8% |
| 43 | Missouri | 4% | 5.4% | 0.96% | 9.3% |
| 44 | Oklahoma | 4% | 4.75% | 0.83% | 9% |
| 45 | North Carolina | 2.5% | 4.99% | 0.78% | 9.9% |
| 46 | Nevada | 0% | 0% | 0.56% | 9.6% |
| 47 | Ohio | 0% | 4.8% | 1.52% | 10% |
| 48 | South Dakota | 0% | 0% | 1.14% | 8.4% |
| 49 | Texas | 0% | 0% | 1.6% | 8.6% |
| 50 | Washington | 0% | 7% | 0.84% | 10.7% |
| 51 | Wyoming | 0% | 0% | 0.51% | 7.5% |
Corporate Tax Rate by State
Alabama
Corporate Tax Rate
6.5%
Ranked in the US
#24
Ranked in the US
#27
0.37%
Ranked in the US
#49
Ranked in the US
#30
Alaska
Corporate Tax Rate
9.4%
Ranked in the US
#4
Ranked in the US
#44
0.98%
Ranked in the US
#21
Ranked in the US
#51
Arizona
Corporate Tax Rate
4.9%
Ranked in the US
#38
Ranked in the US
#38
Ranked in the US
#39
Ranked in the US
#37
Arkansas
Corporate Tax Rate
5.3%
Ranked in the US
#34
Ranked in the US
#25
0.61%
Ranked in the US
#38
Ranked in the US
#26
California
Corporate Tax Rate
8.8%
Ranked in the US
#7
Ranked in the US
#1
Ranked in the US
#34
Ranked in the US
#5
Colorado
Corporate Tax Rate
4.6%
Ranked in the US
#41
Ranked in the US
#37
0.52%
Ranked in the US
#46
Ranked in the US
#33
Connecticut
Corporate Tax Rate
7.5%
Ranked in the US
#16
Ranked in the US
#13
1.73%
Ranked in the US
#5
Ranked in the US
#2
Delaware
Corporate Tax Rate
8.7%
Ranked in the US
#8
Ranked in the US
#16
0.59%
Ranked in the US
#40
Ranked in the US
#9
District of Columbia
Corporate Tax Rate
8.3%
Ranked in the US
#11
Ranked in the US
#20
Ranked in the US
#13
Florida
Corporate Tax Rate
5.5%
Ranked in the US
#33
Ranked in the US
#45
0.86%
Ranked in the US
#26
Ranked in the US
#40
Georgia
Corporate Tax Rate
5.8%
Ranked in the US
#31
Ranked in the US
#21
0.87%
Ranked in the US
#25
Ranked in the US
#43
Hawaii
Corporate Tax Rate
6.4%
Ranked in the US
#27
Ranked in the US
#9
0.31%
Ranked in the US
#50
Ranked in the US
#3
Idaho
Corporate Tax Rate
5.8%
Ranked in the US
#32
Ranked in the US
#14
0.65%
Ranked in the US
#35
Ranked in the US
#22
Illinois
Corporate Tax Rate
9.5%
Ranked in the US
#3
Ranked in the US
#32
1.97%
Ranked in the US
#2
Ranked in the US
#7
Indiana
Corporate Tax Rate
4.9%
Ranked in the US
#39
Ranked in the US
#41
0.81%
Ranked in the US
#30
Ranked in the US
#38
Iowa
Corporate Tax Rate
8.4%
Ranked in the US
#10
Ranked in the US
#7
1.43%
Ranked in the US
#11
Ranked in the US
#18
Kansas
Corporate Tax Rate
7%
Ranked in the US
#21
Ranked in the US
#24
1.28%
Ranked in the US
#15
Ranked in the US
#19
Kentucky
Corporate Tax Rate
5%
Ranked in the US
#35
Ranked in the US
#28
0.78%
Ranked in the US
#31
Ranked in the US
#34
Louisiana
Corporate Tax Rate
7.5%
Ranked in the US
#17
Ranked in the US
#39
0.51%
Ranked in the US
#47
Ranked in the US
#41
Maine
Corporate Tax Rate
8.9%
Ranked in the US
#6
Ranked in the US
#10
Ranked in the US
#16
Ranked in the US
#10
Maryland
Corporate Tax Rate
8.3%
Ranked in the US
#12
Ranked in the US
#22
1.01%
Ranked in the US
#20
Ranked in the US
#17
Massachusetts
Corporate Tax Rate
8%
Ranked in the US
#13
Ranked in the US
#29
1.08%
Ranked in the US
#18
Ranked in the US
#14
Michigan
Corporate Tax Rate
6%
Ranked in the US
#28
Ranked in the US
#40
1.53%
Ranked in the US
#8
Ranked in the US
#46
Minnesota
Corporate Tax Rate
9.8%
Ranked in the US
#2
Ranked in the US
#4
1.05%
Ranked in the US
#19
Ranked in the US
#11
Mississippi
Corporate Tax Rate
5%
Ranked in the US
#36
Ranked in the US
#30
0.63%
Ranked in the US
#36
Ranked in the US
#31
Missouri
Corporate Tax Rate
4%
Ranked in the US
#43
Ranked in the US
#26
0.96%
Ranked in the US
#22
Ranked in the US
#39
Montana
Corporate Tax Rate
6.8%
Ranked in the US
#23
Ranked in the US
#34
0.74%
Ranked in the US
#33
Ranked in the US
#25
Nebraska
Corporate Tax Rate
7.3%
Ranked in the US
#19
Ranked in the US
#15
1.54%
Ranked in the US
#7
Ranked in the US
#15
Nevada
Corporate Tax Rate
0%
Ranked in the US
#46
Ranked in the US
#46
0.56%
Ranked in the US
#42
Ranked in the US
#35
New Hampshire
Corporate Tax Rate
7.5%
Ranked in the US
#18
Ranked in the US
#47
1.89%
Ranked in the US
#3
Ranked in the US
#36
New Jersey
Corporate Tax Rate
11.5%
Ranked in the US
#1
10.75%
Ranked in the US
#2
2.13%
Ranked in the US
#1
Ranked in the US
#6
New Mexico
Corporate Tax Rate
5.9%
Ranked in the US
#30
Ranked in the US
#19
0.59%
Ranked in the US
#41
Ranked in the US
#27
New York
Corporate Tax Rate
7.3%
Ranked in the US
#20
Ranked in the US
#5
Ranked in the US
#14
Ranked in the US
#1
North Carolina
Corporate Tax Rate
2.5%
Ranked in the US
#45
Ranked in the US
#31
0.78%
Ranked in the US
#32
Ranked in the US
#29
North Dakota
Corporate Tax Rate
4.3%
Ranked in the US
#42
Ranked in the US
#43
0.88%
Ranked in the US
#24
Ranked in the US
#45
Ohio
Corporate Tax Rate
0%
Ranked in the US
#47
Ranked in the US
#35
1.52%
Ranked in the US
#10
Ranked in the US
#28
Oklahoma
Corporate Tax Rate
4%
Ranked in the US
#44
Ranked in the US
#36
0.83%
Ranked in the US
#29
Ranked in the US
#42
Oregon
Corporate Tax Rate
7.6%
Ranked in the US
#15
Ranked in the US
#3
0.91%
Ranked in the US
#23
Ranked in the US
#21
Pennsylvania
Corporate Tax Rate
9%
Ranked in the US
#5
Ranked in the US
#42
1.43%
Ranked in the US
#12
Ranked in the US
#24
Rhode Island
Corporate Tax Rate
7%
Ranked in the US
#22
Ranked in the US
#18
1.37%
Ranked in the US
#13
Ranked in the US
#16
South Carolina
Corporate Tax Rate
5%
Ranked in the US
#37
Ranked in the US
#11
0.53%
Ranked in the US
#44
Ranked in the US
#44
South Dakota
Corporate Tax Rate
0%
Ranked in the US
#48
Ranked in the US
#48
1.14%
Ranked in the US
#17
Ranked in the US
#48
Tennessee
Corporate Tax Rate
6.5%
Ranked in the US
#25
Ranked in the US
#49
0.63%
Ranked in the US
#37
Ranked in the US
#49
Texas
Corporate Tax Rate
0%
Ranked in the US
#49
Ranked in the US
#50
Ranked in the US
#6
Ranked in the US
#47
Utah
Corporate Tax Rate
4.9%
Ranked in the US
#40
Ranked in the US
#33
0.56%
Ranked in the US
#43
Ranked in the US
#12
Vermont
Corporate Tax Rate
8.5%
Ranked in the US
#9
Ranked in the US
#6
1.76%
Ranked in the US
#4
Ranked in the US
#4
Virginia
Corporate Tax Rate
6%
Ranked in the US
#29
Ranked in the US
#23
0.84%
Ranked in the US
#27
Ranked in the US
#8
Washington
Corporate Tax Rate
0%
Ranked in the US
#50
Ranked in the US
#12
0.84%
Ranked in the US
#28
Ranked in the US
#23
West Virginia
Corporate Tax Rate
6.5%
Ranked in the US
#26
Ranked in the US
#17
0.53%
Ranked in the US
#45
Ranked in the US
#32
Wisconsin
Corporate Tax Rate
7.9%
Ranked in the US
#14
Ranked in the US
#8
1.53%
Ranked in the US
#9
Ranked in the US
#20
Wyoming
Corporate Tax Rate
0%
Ranked in the US
#51
Ranked in the US
#51
0.51%
Ranked in the US
#48
Ranked in the US
#50
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