Corporate Tax Rate by State

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.

Corporate Tax Rate by State

Alabama - Corporate Tax Rate

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CORPORATE TAX RATEhelp

6.5%

#18 in the US

CAPITAL GAINS TAX RATEhelp

5%

#22 in the US

PROPERTY TAX RATEhelp

0.37%

#1 in the US

STATE-LOCAL TAX BURDENhelp

9.8%

#10 in the US

Alaska - Corporate Tax Rate

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9.4%

#40 in the US

CAPITAL GAINS TAX RATEhelp

0%

#1 in the US

PROPERTY TAX RATEhelp

0.98%

#2 in the US

STATE-LOCAL TAX BURDENhelp

4.6%

#1 in the US

Arizona - Corporate Tax Rate

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4.9%

#2 in the US

CAPITAL GAINS TAX RATEhelp

4.5%

#12 in the US

PROPERTY TAX RATEhelp

0.6%

#3 in the US

STATE-LOCAL TAX BURDENhelp

9.5%

#11 in the US

Arkansas - Corporate Tax Rate

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5.9%

#11 in the US

CAPITAL GAINS TAX RATEhelp

5.5%

#23 in the US

PROPERTY TAX RATEhelp

0.61%

#4 in the US

STATE-LOCAL TAX BURDENhelp

10.2%

#24 in the US

California - Corporate Tax Rate

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8.84%

#33 in the US

CAPITAL GAINS TAX RATEhelp

13.3%

#51 in the US

PROPERTY TAX RATEhelp

0.7%

#5 in the US

STATE-LOCAL TAX BURDENhelp

13.5%

#46 in the US

Colorado - Corporate Tax Rate

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4.55%

#3 in the US

CAPITAL GAINS TAX RATEhelp

4.55%

#13 in the US

PROPERTY TAX RATEhelp

0.52%

#6 in the US

STATE-LOCAL TAX BURDENhelp

9.7%

#12 in the US

Connecticut - Corporate Tax Rate

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7.5%

#26 in the US

CAPITAL GAINS TAX RATEhelp

6.99%

#35 in the US

PROPERTY TAX RATEhelp

1.73%

#31 in the US

STATE-LOCAL TAX BURDENhelp

15.4%

#50 in the US

Delaware - Corporate Tax Rate

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8.7%

#34 in the US

CAPITAL GAINS TAX RATEhelp

6.6%

#36 in the US

PROPERTY TAX RATEhelp

0.59%

#7 in the US

STATE-LOCAL TAX BURDENhelp

12.4%

#39 in the US

District of Columbia - Corporate Tax Rate

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8.25%

#35 in the US

CAPITAL GAINS TAX RATEhelp

5.75%

#24 in the US

STATE-LOCAL TAX BURDENhelp

12%

#40 in the US

Florida - Corporate Tax Rate

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5.5%

#12 in the US

CAPITAL GAINS TAX RATEhelp

0%

#2 in the US

PROPERTY TAX RATEhelp

0.86%

#8 in the US

STATE-LOCAL TAX BURDENhelp

9.1%

#13 in the US

Georgia - Corporate Tax Rate

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5.75%

#13 in the US

CAPITAL GAINS TAX RATEhelp

5.75%

#25 in the US

PROPERTY TAX RATEhelp

0.87%

#9 in the US

STATE-LOCAL TAX BURDENhelp

8.9%

#4 in the US

Hawaii - Corporate Tax Rate

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4.4%

#4 in the US

CAPITAL GAINS TAX RATEhelp

7.25%

#40 in the US

PROPERTY TAX RATEhelp

0.31%

#10 in the US

STATE-LOCAL TAX BURDENhelp

14.1%

#49 in the US

Idaho - Corporate Tax Rate

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6.5%

#19 in the US

CAPITAL GAINS TAX RATEhelp

6.93%

#37 in the US

PROPERTY TAX RATEhelp

0.65%

#11 in the US

STATE-LOCAL TAX BURDENhelp

10.7%

#25 in the US

Illinois - Corporate Tax Rate

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9.5%

#41 in the US

CAPITAL GAINS TAX RATEhelp

4.95%

#14 in the US

PROPERTY TAX RATEhelp

1.97%

#32 in the US

STATE-LOCAL TAX BURDENhelp

12.9%

#41 in the US

Indiana - Corporate Tax Rate

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4.9%

#5 in the US

CAPITAL GAINS TAX RATEhelp

3.23%

#10 in the US

PROPERTY TAX RATEhelp

0.81%

#12 in the US

STATE-LOCAL TAX BURDENhelp

9.3%

#14 in the US

Iowa - Corporate Tax Rate

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9.8%

#42 in the US

CAPITAL GAINS TAX RATEhelp

8.53%

#45 in the US

PROPERTY TAX RATEhelp

1.43%

#33 in the US

STATE-LOCAL TAX BURDENhelp

11.2%

#33 in the US

Kansas - Corporate Tax Rate

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4%

#6 in the US

CAPITAL GAINS TAX RATEhelp

5.7%

#26 in the US

PROPERTY TAX RATEhelp

1.28%

#34 in the US

STATE-LOCAL TAX BURDENhelp

11.2%

#34 in the US

Kentucky - Corporate Tax Rate

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5%

#14 in the US

CAPITAL GAINS TAX RATEhelp

5%

#27 in the US

PROPERTY TAX RATEhelp

0.78%

#13 in the US

STATE-LOCAL TAX BURDENhelp

9.6%

#15 in the US

Louisiana - Corporate Tax Rate

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7.5%

#27 in the US

CAPITAL GAINS TAX RATEhelp

4.25%

#15 in the US

PROPERTY TAX RATEhelp

0.51%

#14 in the US

STATE-LOCAL TAX BURDENhelp

9.1%

#16 in the US

Maine - Corporate Tax Rate

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8.93%

#36 in the US

CAPITAL GAINS TAX RATEhelp

7.15%

#41 in the US

PROPERTY TAX RATEhelp

1.2%

#35 in the US

STATE-LOCAL TAX BURDENhelp

12.4%

#42 in the US

Maryland - Corporate Tax Rate

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8.25%

#37 in the US

CAPITAL GAINS TAX RATEhelp

5.75%

#28 in the US

PROPERTY TAX RATEhelp

1.01%

#36 in the US

STATE-LOCAL TAX BURDENhelp

11.3%

#35 in the US

Massachusetts - Corporate Tax Rate

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8%

#38 in the US

CAPITAL GAINS TAX RATEhelp

5%

#29 in the US

PROPERTY TAX RATEhelp

1.08%

#37 in the US

STATE-LOCAL TAX BURDENhelp

11.5%

#36 in the US

Michigan - Corporate Tax Rate

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6%

#20 in the US

CAPITAL GAINS TAX RATEhelp

4.25%

#16 in the US

PROPERTY TAX RATEhelp

1.53%

#38 in the US

STATE-LOCAL TAX BURDENhelp

8.6%

#5 in the US

Minnesota - Corporate Tax Rate

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9.8%

#43 in the US

CAPITAL GAINS TAX RATEhelp

9.85%

#48 in the US

PROPERTY TAX RATEhelp

1.05%

#39 in the US

STATE-LOCAL TAX BURDENhelp

12.1%

#43 in the US

Mississippi - Corporate Tax Rate

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5%

#15 in the US

CAPITAL GAINS TAX RATEhelp

5%

#30 in the US

PROPERTY TAX RATEhelp

0.63%

#15 in the US

STATE-LOCAL TAX BURDENhelp

9.8%

#17 in the US

Missouri - Corporate Tax Rate

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4%

#7 in the US

CAPITAL GAINS TAX RATEhelp

5.4%

#31 in the US

PROPERTY TAX RATEhelp

0.96%

#16 in the US

STATE-LOCAL TAX BURDENhelp

9.3%

#18 in the US

Montana - Corporate Tax Rate

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6.75%

#21 in the US

CAPITAL GAINS TAX RATEhelp

4.9%

#17 in the US

PROPERTY TAX RATEhelp

0.74%

#17 in the US

STATE-LOCAL TAX BURDENhelp

10.5%

#26 in the US

Nebraska - Corporate Tax Rate

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7.5%

#28 in the US

CAPITAL GAINS TAX RATEhelp

6.84%

#38 in the US

PROPERTY TAX RATEhelp

1.54%

#40 in the US

STATE-LOCAL TAX BURDENhelp

11.5%

#37 in the US

New Hampshire - Corporate Tax Rate

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7.6%

#29 in the US

CAPITAL GAINS TAX RATEhelp

0%

#4 in the US

PROPERTY TAX RATEhelp

1.89%

#41 in the US

STATE-LOCAL TAX BURDENhelp

9.6%

#20 in the US

New Jersey - Corporate Tax Rate

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9%

#44 in the US

CAPITAL GAINS TAX RATEhelp

10.75%

#50 in the US

PROPERTY TAX RATEhelp

2.13%

#50 in the US

STATE-LOCAL TAX BURDENhelp

13.2%

#47 in the US

New Mexico - Corporate Tax Rate

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5.9%

#16 in the US

CAPITAL GAINS TAX RATEhelp

5.9%

#32 in the US

PROPERTY TAX RATEhelp

0.59%

#19 in the US

STATE-LOCAL TAX BURDENhelp

10.2%

#27 in the US

New York - Corporate Tax Rate

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6.5%

#22 in the US

CAPITAL GAINS TAX RATEhelp

8.82%

#46 in the US

PROPERTY TAX RATEhelp

1.3%

#42 in the US

STATE-LOCAL TAX BURDENhelp

15.9%

#51 in the US

North Carolina - Corporate Tax Rate

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2.5%

#1 in the US

CAPITAL GAINS TAX RATEhelp

4.99%

#18 in the US

PROPERTY TAX RATEhelp

0.78%

#20 in the US

STATE-LOCAL TAX BURDENhelp

9.9%

#21 in the US

North Dakota - Corporate Tax Rate

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4.31%

#8 in the US

CAPITAL GAINS TAX RATEhelp

2.9%

#9 in the US

PROPERTY TAX RATEhelp

0.88%

#21 in the US

STATE-LOCAL TAX BURDENhelp

8.8%

#6 in the US

Oklahoma - Corporate Tax Rate

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4%

#9 in the US

CAPITAL GAINS TAX RATEhelp

4.75%

#20 in the US

PROPERTY TAX RATEhelp

0.83%

#22 in the US

STATE-LOCAL TAX BURDENhelp

9%

#22 in the US

Oregon - Corporate Tax Rate

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7.6%

#30 in the US

CAPITAL GAINS TAX RATEhelp

9.9%

#49 in the US

PROPERTY TAX RATEhelp

0.91%

#23 in the US

STATE-LOCAL TAX BURDENhelp

10.8%

#29 in the US

Pennsylvania - Corporate Tax Rate

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9.99%

#45 in the US

CAPITAL GAINS TAX RATEhelp

3.07%

#11 in the US

PROPERTY TAX RATEhelp

1.43%

#44 in the US

STATE-LOCAL TAX BURDENhelp

10.6%

#30 in the US

Rhode Island - Corporate Tax Rate

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7%

#31 in the US

CAPITAL GAINS TAX RATEhelp

5.99%

#33 in the US

PROPERTY TAX RATEhelp

1.37%

#45 in the US

STATE-LOCAL TAX BURDENhelp

11.4%

#38 in the US

South Carolina - Corporate Tax Rate

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5%

#17 in the US

CAPITAL GAINS TAX RATEhelp

7%

#42 in the US

PROPERTY TAX RATEhelp

0.53%

#24 in the US

STATE-LOCAL TAX BURDENhelp

8.9%

#7 in the US

Tennessee - Corporate Tax Rate

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6.5%

#23 in the US

CAPITAL GAINS TAX RATEhelp

0%

#6 in the US

PROPERTY TAX RATEhelp

0.63%

#25 in the US

STATE-LOCAL TAX BURDENhelp

7.6%

#2 in the US

Utah - Corporate Tax Rate

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4.95%

#10 in the US

CAPITAL GAINS TAX RATEhelp

4.95%

#21 in the US

PROPERTY TAX RATEhelp

0.56%

#26 in the US

STATE-LOCAL TAX BURDENhelp

12.1%

#44 in the US

Vermont - Corporate Tax Rate

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8.5%

#39 in the US

CAPITAL GAINS TAX RATEhelp

8.75%

#47 in the US

PROPERTY TAX RATEhelp

1.76%

#48 in the US

STATE-LOCAL TAX BURDENhelp

13.6%

#48 in the US

Virginia - Corporate Tax Rate

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6%

#24 in the US

CAPITAL GAINS TAX RATEhelp

5.75%

#34 in the US

PROPERTY TAX RATEhelp

0.84%

#27 in the US

STATE-LOCAL TAX BURDENhelp

12.5%

#45 in the US

West Virginia - Corporate Tax Rate

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6.5%

#25 in the US

CAPITAL GAINS TAX RATEhelp

6.5%

#39 in the US

PROPERTY TAX RATEhelp

0.53%

#29 in the US

STATE-LOCAL TAX BURDENhelp

9.8%

#23 in the US

Wisconsin - Corporate Tax Rate

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7.9%

#32 in the US

CAPITAL GAINS TAX RATEhelp

7.65%

#44 in the US

PROPERTY TAX RATEhelp

1.53%

#49 in the US

STATE-LOCAL TAX BURDENhelp

10.9%

#32 in the US