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.
[shield-db-table]Need to survey a highly targeted audience?
Talk to our Experts