How high are corporate income tax rates in your state ?

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Levied in 44 states, corporate income taxes account for a relatively small share of state revenue—5.2 percent of state tax collections and just over 2 percent of all state revenue, including federal transfers.Top rates range from a low of 4.53 percent in North Dakota to a high of 12 percent in Iowa.

Iowa’s highest top corporate tax rate is followed by Pennsylvania’s, at 9.99 percent. Four states and the District of Columbia levy single-rate corporate taxes of 9 percent or more: Minnesota (9.84 percent), Alaska (9.4 percent), the District of Columbia (9.4 percent), Connecticut (9 percent), and New Jersey (9 percent). At the other end of the spectrum, six states have top rates at or below 5 percent: North Dakota at 4.53 percent, Colorado at 4.63 percent, and Mississippi, North Carolina, South Carolina, and Utah all at 5.0 percent.

How high are corporate income tax rates in your state
How high are corporate income tax rates in your state

Ohio, Texas, and Washington forego corporate income taxes but instead impose gross receipts taxes on businesses. Nevada, South Dakota, and Wyoming levy neither corporate income nor gross receipts taxes.

Notable Corporate Income Tax Changes in 2015

Several states implemented corporate income tax rate reductions and other reforms between 2014 and 2015. Notable corporate income tax changes for 2015 include:

  • reduction of Arizona’s corporate rate from 6.5 to 6.0 percent as part of a multi-year reduction to 4.9 percent by 2018;[2]
  • the partial sunset of Illinois’ corporate income tax to 7.75 percent, from its prior rate of 9.5 percent (these rates include both the corporate income tax and a “personal property replacement tax” levied on an identical corporate income base);[3]
  • reduction of New Mexico’s top rate from 7.3 to 6.9 percent, on track to reach 5.9 percent by 2018;[4]
  • a rate cut in Rhode Island taking the state’s top rate from 9 to 7 percent;[5] and
  • a tax reform package in the District of Columbia that, among other things, reduced business taxes from 9.975 to 9.4 percent, with planned future reductions designed to bring the rate to 8.25 percent.[6]

The following table includes the most up-to-date data available on state corporate income tax rates and brackets.



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