Corporate Tax Rate by State

Map

Table

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.

#StateCorporate Tax RateCapital Gains Tax RateProperty Tax RateState-Local Tax Burden
1New Jersey11.5%10.75%2.13%13.2%
2Minnesota9.8%9.85%1.05%12.1%
3Illinois9.5%4.95%1.97%12.9%
4Alaska9.4%0%0.98%4.6%
5Pennsylvania9%3.07%1.43%10.6%
6Maine8.9%7.15%1.2%12.4%
7California8.8%13.3%0.7%13.5%
8Delaware8.7%6.6%0.59%12.4%
9Vermont8.5%8.75%1.76%13.6%
10Iowa8.4%8.53%1.43%11.2%
11District of Columbia8.3%5.75%12%
12Maryland8.3%5.75%1.01%11.3%
13Massachusetts8%5%1.08%11.5%
14Wisconsin7.9%7.65%1.53%10.9%
15Oregon7.6%9.9%0.91%10.8%
16Connecticut7.5%6.99%1.73%15.4%
17Louisiana7.5%4.25%0.51%9.1%
18New Hampshire7.5%0%1.89%9.6%
19Nebraska7.3%6.84%1.54%11.5%
20New York7.3%8.82%1.3%15.9%
21Kansas7%5.7%1.28%11.2%
22Rhode Island7%5.99%1.37%11.4%
23Montana6.8%4.9%0.74%10.5%
24Alabama6.5%5%0.37%9.8%
25Tennessee6.5%0%0.63%7.6%
26West Virginia6.5%6.5%0.53%9.8%
27Hawaii6.4%7.25%0.31%14.1%
28Michigan6%4.25%1.53%8.6%
29Virginia6%5.75%0.84%12.5%
30New Mexico5.9%5.9%0.59%10.2%
31Georgia5.8%5.75%0.87%8.9%
32Idaho5.8%6.93%0.65%10.7%
33Florida5.5%0%0.86%9.1%
34Arkansas5.3%5.5%0.61%10.2%
35Kentucky5%5%0.78%9.6%
36Mississippi5%5%0.63%9.8%
37South Carolina5%7%0.53%8.9%
38Arizona4.9%4.5%0.6%9.5%
39Indiana4.9%3.23%0.81%9.3%
40Utah4.9%4.95%0.56%12.1%
41Colorado4.6%4.55%0.52%9.7%
42North Dakota4.3%2.9%0.88%8.8%
43Missouri4%5.4%0.96%9.3%
44Oklahoma4%4.75%0.83%9%
45North Carolina2.5%4.99%0.78%9.9%
46Nevada0%0%0.56%9.6%
47Ohio0%4.8%1.52%10%
48South Dakota0%0%1.14%8.4%
49Texas0%0%1.6%8.6%
50Washington0%7%0.84%10.7%
51Wyoming0%0%0.51%7.5%

Corporate Tax Rate by State

Alabama

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Corporate Tax Rate

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6.5%

Ranked in the US

#24

Ranked in the US

#27

Ranked in the US

#49

Ranked in the US

#30

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Alaska

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9.4%

Ranked in the US

#4

Ranked in the US

#44

Ranked in the US

#21

Ranked in the US

#51

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Arizona

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4.9%

Ranked in the US

#38

Ranked in the US

#38

Ranked in the US

#39

Ranked in the US

#37

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Arkansas

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5.3%

Ranked in the US

#34

Ranked in the US

#25

Ranked in the US

#38

Ranked in the US

#26

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

California

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8.8%

Ranked in the US

#7

Ranked in the US

#1

Ranked in the US

#34

Ranked in the US

#5

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Colorado

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4.6%

Ranked in the US

#41

Ranked in the US

#37

Ranked in the US

#46

Ranked in the US

#33

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Connecticut

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7.5%

Ranked in the US

#16

Ranked in the US

#13

Ranked in the US

#5

Ranked in the US

#2

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Delaware

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8.7%

Ranked in the US

#8

Ranked in the US

#16

Ranked in the US

#40

Ranked in the US

#9

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

District of Columbia

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8.3%

Ranked in the US

#11

Ranked in the US

#20

Ranked in the US

#13

Corporate Tax Rate

Capital Gains Tax Rate

State-Local Tax Burden

Florida

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5.5%

Ranked in the US

#33

Ranked in the US

#45

Ranked in the US

#26

Ranked in the US

#40

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Georgia

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5.8%

Ranked in the US

#31

Ranked in the US

#21

Ranked in the US

#25

Ranked in the US

#43

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Hawaii

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6.4%

Ranked in the US

#27

Ranked in the US

#9

Ranked in the US

#50

Ranked in the US

#3

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Idaho

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5.8%

Ranked in the US

#32

Ranked in the US

#14

Ranked in the US

#35

Ranked in the US

#22

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Illinois

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9.5%

Ranked in the US

#3

Ranked in the US

#32

Ranked in the US

#2

Ranked in the US

#7

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Indiana

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4.9%

Ranked in the US

#39

Ranked in the US

#41

Ranked in the US

#30

Ranked in the US

#38

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Iowa

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8.4%

Ranked in the US

#10

Ranked in the US

#7

Ranked in the US

#11

Ranked in the US

#18

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Kansas

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7%

Ranked in the US

#21

Ranked in the US

#24

Ranked in the US

#15

Ranked in the US

#19

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Kentucky

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5%

Ranked in the US

#35

Ranked in the US

#28

Ranked in the US

#31

Ranked in the US

#34

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Louisiana

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7.5%

Ranked in the US

#17

Ranked in the US

#39

Ranked in the US

#47

Ranked in the US

#41

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Maine

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8.9%

Ranked in the US

#6

Ranked in the US

#10

Ranked in the US

#16

Ranked in the US

#10

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Maryland

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8.3%

Ranked in the US

#12

Ranked in the US

#22

Ranked in the US

#20

Ranked in the US

#17

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Massachusetts

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8%

Ranked in the US

#13

Ranked in the US

#29

Ranked in the US

#18

Ranked in the US

#14

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Michigan

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6%

Ranked in the US

#28

Ranked in the US

#40

Ranked in the US

#8

Ranked in the US

#46

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Minnesota

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9.8%

Ranked in the US

#2

Ranked in the US

#4

Ranked in the US

#19

Ranked in the US

#11

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Mississippi

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5%

Ranked in the US

#36

Ranked in the US

#30

Ranked in the US

#36

Ranked in the US

#31

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Missouri

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4%

Ranked in the US

#43

Ranked in the US

#26

Ranked in the US

#22

Ranked in the US

#39

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Montana

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6.8%

Ranked in the US

#23

Ranked in the US

#34

Ranked in the US

#33

Ranked in the US

#25

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Nebraska

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7.3%

Ranked in the US

#19

Ranked in the US

#15

Ranked in the US

#7

Ranked in the US

#15

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Nevada

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0%

Ranked in the US

#46

Ranked in the US

#46

Ranked in the US

#42

Ranked in the US

#35

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

New Hampshire

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7.5%

Ranked in the US

#18

Ranked in the US

#47

Ranked in the US

#3

Ranked in the US

#36

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

New Jersey

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11.5%

Ranked in the US

#1

Ranked in the US

#2

Ranked in the US

#1

Ranked in the US

#6

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

New Mexico

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5.9%

Ranked in the US

#30

Ranked in the US

#19

Ranked in the US

#41

Ranked in the US

#27

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

New York

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7.3%

Ranked in the US

#20

Ranked in the US

#5

Ranked in the US

#14

Ranked in the US

#1

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

North Carolina

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2.5%

Ranked in the US

#45

Ranked in the US

#31

Ranked in the US

#32

Ranked in the US

#29

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

North Dakota

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4.3%

Ranked in the US

#42

Ranked in the US

#43

Ranked in the US

#24

Ranked in the US

#45

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Ohio

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0%

Ranked in the US

#47

Ranked in the US

#35

Ranked in the US

#10

Ranked in the US

#28

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Oklahoma

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4%

Ranked in the US

#44

Ranked in the US

#36

Ranked in the US

#29

Ranked in the US

#42

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Oregon

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7.6%

Ranked in the US

#15

Ranked in the US

#3

Ranked in the US

#23

Ranked in the US

#21

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Pennsylvania

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9%

Ranked in the US

#5

Ranked in the US

#42

Ranked in the US

#12

Ranked in the US

#24

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Rhode Island

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7%

Ranked in the US

#22

Ranked in the US

#18

Ranked in the US

#13

Ranked in the US

#16

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

South Carolina

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5%

Ranked in the US

#37

Ranked in the US

#11

Ranked in the US

#44

Ranked in the US

#44

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

South Dakota

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0%

Ranked in the US

#48

Ranked in the US

#48

Ranked in the US

#17

Ranked in the US

#48

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Tennessee

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6.5%

Ranked in the US

#25

Ranked in the US

#49

Ranked in the US

#37

Ranked in the US

#49

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Texas

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0%

Ranked in the US

#49

Ranked in the US

#50

Ranked in the US

#6

Ranked in the US

#47

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Utah

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4.9%

Ranked in the US

#40

Ranked in the US

#33

Ranked in the US

#43

Ranked in the US

#12

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Vermont

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8.5%

Ranked in the US

#9

Ranked in the US

#6

Ranked in the US

#4

Ranked in the US

#4

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Virginia

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6%

Ranked in the US

#29

Ranked in the US

#23

Ranked in the US

#27

Ranked in the US

#8

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Washington

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0%

Ranked in the US

#50

Ranked in the US

#12

Ranked in the US

#28

Ranked in the US

#23

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

West Virginia

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6.5%

Ranked in the US

#26

Ranked in the US

#17

Ranked in the US

#45

Ranked in the US

#32

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Wisconsin

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7.9%

Ranked in the US

#14

Ranked in the US

#8

Ranked in the US

#9

Ranked in the US

#20

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

Wyoming

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0%

Ranked in the US

#51

Ranked in the US

#51

Ranked in the US

#48

Ranked in the US

#50

Corporate Tax Rate

Capital Gains Tax Rate

Property Tax Rate

State-Local Tax Burden

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