State Corp Income Rates 2000-2012-20120216

StateCorporateIncomeTaxRates
AsofJanuary1,2012
State
Ala.
Alaska
Ariz.
Ark.(a)
Calif.
Colo.
Conn.(b)
Del.(c)
Fla.
Ga.
Hawaii
Idaho
Ill.(d)
Ind.(e)
Iowa
Kans.
Ky.
La.
Maine
Md.
Mass.
Mich.
Minn.
Miss.
Mo.
Mont.
Nebr.
Rates
6.5%
1%
2%
3%
4%
5%
6%
7%
8%
9%
9.4%
6.968%
1%
2%
3%
5%
6%
6.5%
8.84%
4.63%
9%
8.7%
5.5%
6%
4.4%
5.4%
6.4%
7.6%
9.5%
8.5%
6%
8%
10%
12%
4%
7%
4%
5%
6%
4%
5%
6%
7%
8%
3.50%
7.93%
8.33%
8.93%
8.25%
8.00%
6.00%
9.8%
3%
4%
5%
6.25%
6.75%
5.58%
7.81%
Brackets
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$0
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$0
$0
$3,000
$6,000
$11,000
$25,000
$100,000
$0
$0
$0
$0
$0
$0
$0
$25,000
$100,000
$0
$0
$0
$0
$25,000
$100,000
$250,000
$0
$50K
$0
$50,000
$100,000
$0
$25,000
$50,000
$100,000
$200,000
$0
$25,000
$75,000
$250,000
$0
$0
$0
$0
$0
$5,000
$10,000
$0
$0
$0
$100,000
Nev.
N.H.
N.J.(f)
N.M.
None
8.5%
9%
4.8%
6.4%
7.6%
7.1%
6.9%
1.7%
4.23%
5.2%
N.Y.
N.C.(a)
N.D.
Ohio
Okla.
Ore.
$0
$100,000
$0
$500,000
$1,000,000
$0
$0
$0
$25,000
$50,000
>
>
>
>
>
>
$0
$0
$250,000
$0
$0
$0
>
$0
>
>
>
>
>
$0
$0
$10,000
$25,000
$0
>
>
$0
$0
>
$0
(c)
6%
6.6%
7.6%
9.99%
9%
5%
Pa.
R.I.
S.C.
S.D.
Tenn.
Tex.
Utah
Vt.
Va.(c)
Wash.
W.Va.
Wis.
Wyo.
D.C.
>
>
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>
None
6.5%
(c)
5%
6.0%
7.0%
8.5%
6%
(c)
7.75%
7.9%
None
9.975%
Note:Inadditiontoregularincometaxes,manystatesimposeothertaxesoncorporationssuch
asgrossreceiptstaxesandfranchisetaxes.Somestatesalsoimposeanalternativeminimum
tax.Somestatesimposespecialratesonfinancialinstitutions.
(a)NorthCarolinaandArkansasassessasurchargeof3%ofthetaxpayer'stotalliability.
(b)Rateincludesa20%surtax,whicheffectivelyincreasestheratefrom7.5%to9%.
(c)Ohio,Texas,andWashingtondonothaveacorporateincometaxbutdohaveagross
receiptstaxwithratesnotstrictlycomparabletocorporateincometaxrates.SeeTable18for
moreinformation.DelawareandVirginiahaveagrossreceiptstaxinadditiontothecorporate
incometax.
(d)Illinois'srateincludestwoseparatecorporateincometaxes,oneata7%rateandoneata
2.5%rate.
(e)ThetaxrateinIndianawilldecreaseto8%onJuly1,2012.
(f)Corporationswithentirenetincomegreaterthan$100Kpay9%onalltaxableincome,
companieswithentirenetincomegreaterthan$50Kandlessthanorequalto$100Kpay7.5%
onalltaxableincome,andcompanieswithentirenetincomelessthanorequalto$50Kpay
6.5%onalltaxableincome.
Source:TaxFoundationstatetaxformsandinstructions.
TaxFoundation
www.TaxFoundation.org
AsofJanuary1st,2011
State
Ala.
Alaska
Ariz.
Ark.
Calif.
Colo.
Conn.
Del.(a)
Fla.
Ga.
Hawaii
Idaho
Ill.(c)
Ind.
Iowa
Kans.
Ky.
La.
Maine
Md.
Mass.
Mich.(a)
Minn.
Miss.
Mo.
Mont.
Nebr.
Rates
6.5%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
9.4%
6.968%
1.0%
2.0%
3.0%
5.0%
6.0%
6.5%
8.84%
4.63%
7.5%
8.7%
5.5%
6.0%
4.4%
5.4%
6.4%
7.6%
9.5%
8.5%
6.0%
8.0%
10.0%
12.0%
4.0%
7.0%
4.0%
5.0%
6.0%
4.0%
5.0%
6.0%
7.0%
8.0%
3.5%
7.93%
8.33%
8.93%
8.25%
8.25%
>
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Brackets(a)
$0
$0
$10K
$20K
$30K
$40K
$50K
$60K
$70K
$80K
$90K
$0
$0
$3K
$6K
$11K
$25K
$100K
$0
$0
$0
$0
$0
$0
$0
$25K
$100K
$0
$0
$0
$0
$25K
$100K
$250K
$0
$50K
$0
$50K
$100K
$0
$25K
$50K
$100K
$200K
$0
$25K
$75K
$250K
$0
$0
9.8%
3.0%
4.0%
5.0%
6.25%
6.75%
5.58%
>
>
>
>
>
>
>
$0
$0
$5K
$10K
$0
$0
$0
7.81%
Nev.
N.H.(a)
N.J.(b)
N.M.
N.Y.
N.C.
N.D.
Ohio(a)
Okla.
Ore.
Pa.
R.I.
S.C.
S.D.
Tenn.
Tex.(a)
Utah
Vt.6%
Va.(a)
Wash.(a)
W.Va.
Wis.
Wyo.
D.C.
8.5%
9.0%
4.8%
6.4%
7.6%
7.1%
6.9%
2.1%
5.25%
6.4%
6.0%
6.6%
7.6%
9.99%
9.0%
5.0%
6.5%
5.0%
6.0%
7.0%
8.5%
6.0%
8.5%
7.9%
9.975%
>
None
>
>
>
>
>
>
>
>
>
>
$100K
>
>
>
>
>
>
None
>
$0
0
$250K
$0
0
$0
>
>
>
>
>
None
>
>
None
>
$0
0
$10K
$25K
$0
$0
$100K
$0
$500K
$1M
$0
$0
$0
$25K
$50K
$0
$0
0
0
Note:Inadditiontoregularincometaxes,manystatesimpose
othertaxesoncorporationssuchasgrossreceiptstaxesandfranchise
taxes.Somestatesalsoimposeanalternativeminimumtax.
(a)Michigan,Ohio,Texas,andWashingtondonothaveacorporate
incometaxbutdohaveagrossreceiptstaxwithratesnot
strictlycomparabletocorporateincometaxrates.SeeTable18for
moreinformation.Delaware,NewHampshire,andVirginiahavea
grossreceiptstaxinadditiontothecorporateincometax.
(b)Businesseswithentirenetincomegreaterthan$100Kpay9%
onalltaxableincome,companieswithentirenetincomegreater
than$50Kandlessthanorequalto$100Kpay7.5%onalltaxable
income,andcompanieswithentirenetincomelessthanorequal
to$50Kpay6.5%onalltaxableincome.
(c)OnJanuary12,2011,Illinoisincreaseditscorporateincome
taxfrom7.3%to9.5%,retroactivetoJanuary1,2011.Illinoissrate
includestwoseparatecorporateincometaxes,oneata7%rate
andoneata2.5%rate.
Source:TaxFoundationstatetaxformsandinstructions.
www.TaxFoundation.org
StateCorporateIncomeTaxRates,Asof
February1st,2010
State
Rates(a)
Brackets
Ala.
6.5% >
$0
Alaska
1% >
2% >
3% >
4% >
5% >
6% >
7% >
8% >
9% >
9.4% >
$0
$10K
$20K
$30K
$40K
$50K
$60K
$70K
$80K
$90K
Ariz.
6.968% >
$0
Ark.
1% >
2% >
3% >
5% >
6% >
$0
$3K
$6K
$11K
$25K
6.5% >
$100K
Calif.
8.84% >
$0
Colo.
4.63% >
$0
Conn.
7.5% >
$0
Del.
8.7% >
$0
Fla.
5.5% >
$0
Ga.
6% >
$0
Hawaii
4.4% >
5.4% >
6.4% >
Idaho
7.6% >
$0
Ill.
7.3% >
$0
Ind.
8.5% >
$0
Iowa
6% >
8% >
10% >
12% >
$0
$25K
$100K
$250K
4% >
7.05% >
$0
$50K
Ky.
4% >
5% >
6% >
$0
$50K
$100K
La.
4% >
5% >
6% >
$0
$25K
$50K
Kans.
$0
$25K
$100K
7% >
8% >
$100K
$200K
Maine
3.5% >
7.93% >
8.33% >
8.93% >
$0
$25K
$75K
$250K
Md.
8.25% >
$0
8.8% >
$0
4.95% >
$0
Minn.
9.8% >
$0
Miss.
3% >
4% >
5% >
Mass.
Mich.(b)
$0
$5K
$10K
Mo.
6.25% >
$0
Mont.
6.75% >
$0
Nebr.
5.58% >
7.81% >
Nev.
N.H.
N.J.(c)
$0
$100K
None
8.5% >
$0
9% >
$100K
N.M.
4.8% >
6.4% >
7.6% >
$0
$500K
$1M
N.Y.
7.1% >
$0
N.C.
6.9% >
$0
N.D.
2.1% >
5.3% >
6.4% >
$0
$25K
$50K
0.26% >
$0
6% >
$0
Ohio(d)
Okla.
Ore.(e)
6.6% >
7.9% >
$0
$250K
Pa.
9.99% >
$0
R.I.
9% >
$0
S.C.
5% >
$0
S.D.
Tenn.
Tex.
Utah
None
6.5% >
$0
None
5% >
$0
Vt.
6% >
7% >
8.5% >
Va.
6% >
Wash.
$0
$10K
$25K
$0
None
W.Va.
8.5% >
$0
Wis.
7.9% >
$0
Wyo.
D.C.
None
9.975% >
$0
(a)Inadditiontoregularincometaxes,manystatesimposeother
taxesoncorporationssuchasgrossreceiptstaxesandfranchise
taxes.Somestatesalsoimposeanalternativeminimumtax.
(b)Thereisanadditionalsurchargeequaltothelesserof21.99%
oftaxliabilityor$6,000,000andan.8%grossrecieptstax.
(c)Businesseswithentirenetincomegreaterthan$100Kpay9%
onalltaxableincome,companieswithentirenetincomegreater
than$50Kandlessthanorequalto$100Kpay7.5%onalltaxable
income,andcompanieswithentirenetincomelessthanorequalto
$50Kpay6.5%onalltaxableincome.
(d)Ataxongrossreceipts,thecommercialactivitytax(CAT),was
phasedinfrom2005to2009whilethecorporatefranchisetax
(CFT,Ohio'scorporatenetincometax)wasphasedout.Beginning
April1,2009,theCATratewasfullyphasedinat0.26%.Fortax
year2009,companiesowe20%ofCFTliability.Fortaxyear2010
andthereafter,theCFTisfullyphasedout.
(e)Thetopincometaxrate(7.9%onincomeover$250,000)
appliestotaxyearsbeginningonorafterJanuary1,2009,and
beforeJanuary1,2011.
Source:TaxFoundationstatetaxformsandinstructions
TaxFoundation
www.taxfoundation.org
AsofJuly1,2009
State
California
TaxRatesand
Brackets
6.5%
1.0%>$0
2.0>10K
3.0>20K
4.0>30K
5.0>40K
6.0>50K
7.0>60K
8.0>70K
9.0>80K
9.4>90K
6.968%
1.0%>$0
2.0>3K
3.0>6K
5.0>11K
6.0>25K
6.5>100K
8.84%
Colorado
Connecticut
4.63%
7.5%
Delaware
8.7%
Florida
5.5%
Georgia
6.0%
Hawaii
4.4%>$0
5.4>25K
Alabama
Alaska
Arizona
Arkansas
SpecialRatesorNotes
Federaldeductibility
4.5%alternativetaxrateoncapitalgains.Alternative
minimumtaxequalto18%offederalalternative
minimumtax.
Minimumtaxis$50.
Minimumtaxis$800.10.84%onfinancialinstitutions.
ThetaxrateonSCorporationsis1.5%(3.5%for
financialSCorporations).A6.65%AMTisalso
Payhigherofincometaxortaxoncapital(3.1mills
perdollar,withaminimumof$250andamaximumof
$1,000,000).
Bankingtax:8.7%onfirst$20million,6.7%fornext
$5million,4.7%fornext$5million,2.7%fornext
$620million,and1.7%foramountsgreaterthan$650
million.Afranchisetaxisdueonthegreaterofthe
taxcalculatedonauthorizedsharesorgrossassets
($35minimum,$165,000maximum).Delawarealso
leviesabusinessandoccupationalgrossreceiptstax
ratesrangefrom0.104%to2.07%,dependingonthe
businessactivity.
TaxpayerswhoowefederalAMTmustpayhigherof
FLcorporateincometaxor3.3%alternativeminimum
rate.
Financialinstitutions,0.25%ofGeorgiagross
receipts.
Banksandfinancialinstitutionsaretaxedat7.92%.
Analternativetaxrateoncapitalgainsisimposedat
Idaho
Illinois
Indiana
Iowa
Kansas
6.4>100K
7.6%
7.3%
8.5%
6.0%>$0
8.0>25K
10.0>100K
12.0>250K
4.0%>$0
7.05>50K
arateof4%.
Minimumtax$20.
Includes2.5%incomereplacementtax.S
Corporationspayonlya1.5%replacementtax.
50%federaldeductibility.7.2%alternativeminimum
tax.Financialinstitutionsaresubjecttoa5%
franchisetax.
Thetoprateisaresultofa3.1%surtaxonincome
over$50,000.CorporateFranchisetaxof0.09375%
in20080.0625%in2009and0.03125%in2010on
totalnetworthforentitiesof$1,000,000ormore.
BankingPrivilegetaxis2.25%oftotalnetincome
plus2.125%surtaxontaxableincomeover$25,000.
Kentucky
4.0%>$0
5.0>50K
6.0>100K
CorporationsmustalsopaytheLimitedLiabilityEntity
Tax,whichisthelesserof0.095%ofgrossreceipts
or0.75%ofgrossprofits.Thetaxphasesinbetween
$3millionand$6millionofgrossreceiptsorprofits.
Minimumtax$175.
Louisiana
Federaldeductibility.Corporationfranchisetax:
$1.50foreach$1000upto$300,000ofcapital
employedinLAand$3foreach$1000over
$300,000($10minimum).
Maryland
Massachusetts
4.0%>$0
5.0>25K
6.0>50K
7.0>100K
8.0>200K
3.5%>$0
7.93>25K
8.33>75K
8.93>250K
8.25%
9.5%
Michigan
4.95%
Thereisanadditionalmodifiedgrossreceiptstax
(salesminuspurchasesfromotherfirms)atarateof
0.8%.Theincomeandgrossreceiptstaxesare
subjecttoa21.99%surtaxonthecalculatedliability,
withthemaximumsurtaxbeing$6million.Bankspay
ataxonnetworthatarateof0.235%.
Maine
AnAMTisimposedat5.4%.Banksandfinancial
institutionschoosetopayeither1%ofincomeplus
0.008%ofassets,or0.039%ofassetsonly.
Thereisanadditionaltaxof$2.60per$1,000on
taxabletangibleproperty(ornetworthallocabletothe
state,forintangiblepropertycorporations)minimum
taxof$456.10.5%onfinancialinstitutions.
Minnesota
9.8%
Mississippi
Missouri
3.0%>$0
4.0>5K
5.0>10K
6.25%
Montana
6.75%
Nebraska
5.58%>$0
7.81>100K
Nevada
NewHampshire
None
8.5%
NewJersey
6.5%>$0
7.5>50K
9.0>100K
NewMexico
4.8%>$0
6.4>500K
7.6>1,000,000
7.1%
NewYork
5.8%alternativeminimumtaxrate.Aminimumtax
rangingfrom$0to$5000isleviedbasedon
Minnesotaproperty,payrollandsales.
Franchisetaxof$2.50per$1,000oftaxablecapital,
withaminimumtaxof$25
Additionalfranchisetaxat0.0333%oftaxablecapital.
Financialinstitutionspaya7%netincometax.50%
offederaltaxdeductible.
7%forcorporationsfilingunderawater'sedge
election.Minimumtaxis$50.
Financialinstitutions,lesserof0.047%ofaverage
depositsor3.81%ofnetincomebeforetaxesand
extraordinaryitems.
NHhastwocorporatetaxes:theBusinessProfitsTax
(BPT)andtheBusinessEnterpriseTax(BET).The
BPTrateis8.5%ofincomeforcorporationswith
grossreceiptsover$50K.TheBETrateis0.75%on
theenterprisevaluetaxbase(totalcompensation
paidout,includingdividendsandinterest).TheBET
isassessedoncorporationswithgrossreceiptsover
$150Koranenterprisevaluetaxbaseover$75K.
Companieswithincomegreaterthan$100Kpay9%
onallincome,companieswithincomegreaterthan
$50Kbutlessthan$100Kpay7.5%onallincome
andcompanieswithincomeunder$50Kpay6.5%.
Theminimumtaxis$500.AnAlternativeMinimum
Assessmentbasedongrossreceiptsorprofits
appliesifgreaterthancorporatefranchisetax.4%
surtaxappliedtotaxliabilityfor2008and2009.
Bankingandfinancialinstitutionsaresubjecttothe
incometax.
Businessespaygreatestofregularincometax,1.5%
AMT,0.178%ofcapitalbase,orafixeddollar
minimumtaxbetween$100and$1500.Thereisan
additional0.09%taxonsubsidiarycapital.Some
bankingcorporationsaresubjecttoataxof7.5%of
entirenetincome,oranalternativetaxonnetincome
orassets.Asurchargeof17%ofthecomputedtaxis
imposedonbusinessactivitywithintheMetropolitan
CommuterTransportationDistrict.
NorthCarolina
6.9%
Thefranchisetaxrateis$1.50per$1,000andis
appliedtothegreatestofthreedifferenttaxbases,
withaminimumof$35.
7%forfinancialinstitutions,withaminimumof$50.
Corporationsmakingawater'sedgeelectionmust
payanadditional3.5%tax.
NorthDakota
Ohio
2.6%>$0
4.1>3K
5.6>8K
6.4>20K
6.5>30K
0.26%>$0
Oklahoma
6.0%
Additionalfranchisetaxof$1.25foreach$1,000of
capitalinvestedorusedinOklahoma.
Oregon
6.6%
7.9%>$250K
Pennsylvania
9.99%
Minimumtax$10.Financialinstitutionsaresubjectto
theincometax.Thetopincometaxrate(7.9%on
incomeover$250,000)appliestotaxyearsbeginning
onorafterJanuary1,2009,andbeforeJanuary1,
2011.
Imposesacapitalstockandforeignfranchisetaxof
0.189%ontaxableincomeover$125K.Bankand
TrustCompanySharesTaxis1.25%.
RhodeIsland
9.0%
SouthCarolina
SouthDakota
5.0%
None
Tennessee
6.5%
Texas
None
Ataxongrossreceipts,thecommercialactivitytax
(CAT),wasinstitutedin2005.Itwillbephasedin
through2010whilethecorporatefranchisetax(Ohio's
corporatenetincometax)isphasedout.FromApril
2008throughMarch2009,theCATrateis0.208%.
BeginningApril1,2009theCATrateisfullyphased
inandequals0.26%.Fortaxyear2009companies
owe20%ofCorporateFranchiseTaxliability.ForTax
Year2010andthereaftertheCorporateFranchise
Taxisfullyphasedout.
Greaterof9%ofnetincomeapportionedtoRhode
Islandorafranchisetaxonauthorizedcapitalstockat
therateof$2.50foreach$10,000.00orfractional
partthereof(minimumof$500).
4.5%forbanks6%forsavingsandloans.
Bankspay6%onnetincome.Minimumtaxis$200
perlocation.
Franchisetaxof0.25%ofthegreaterofnetworthor
realandtangibleproperty(minimum$100)
Texashasa1%franchisetaxwhichisagross
receiptstaxpaidbymosttaxableentities.Qualified
entitieswith$10millionorlessintotalrevenuepay
0.575%.Qualifyingretailersandwholesalerspay
0.5%.Taxableentitieswithtotalrevenueof$300,000
orlesswillowenotax.Taxableentitieswithtaxdue
oflessthan$1,000willowenotax.
Utah
Vermont
Minimumtax$100.
Minimumtax$250.
Virginia
5.0%
6.0%>$0
7.0>10k
8.5>25k
6.0%
Washington
None
WestVirginia
8.5%
Washingtonhasnoincometaxbuthasagross
receiptstaxcalledtheBusiness&Occupation(B&O)
Taxwhichisleviedatvariousrates.Themajorrates
are0.471%forretailsales,0.484%forwholesaleand
manufacturing,and1.5%forserviceandother
activities.
Businessfranchisetaxof0.55%oftaxablecapital
(minimumof$50).
Wisconsin
7.9%
Wyoming
None
DistrictofColumbia 9.975%
Bankfranchisetaxis1.0%ofnetcapital.
Minimumtaxis$100.DC'sBallparkFeeisleviedon
grossreceiptsover$5millionatvaryingrates.
Sources:TaxFoundationandeachstate'staxformsandinstructions.
TaxFoundation
Ph:(202)4646200
AsofJanuary1,2008
State
Alabama
TaxRatesand SpecialRatesorNotes
Brackets
6.5%
Alaska
1.0%>$0
2.0>10K
3.0>20K
4.0>30K
5.0>40K
6.0>50K
7.0>60K
8.0>70K
9.0>80K
9.4>90K
Arizona
6.968%
Arkansas
1.0%>$0
Minimumtaxis$50.
2.0>3K
3.0>6K
5.0>11K
6.0>25K
6.5>100K
California
8.84%
Colorado
Connecticut
4.63%
7.5%
Delaware
8.7%
financialSCorporations).A6.65%AMTisalso
Payhigherofincometaxortaxoncapital(3.1mills
perdollar,withaminimumof$250andamaximumof
$1,000,000).
Bankingtax:8.7%onfirst$20million,6.7%fornext$5
million,4.7%fornext$5million,2.7%fornext$620
million,and1.7%foramountsgreaterthan$650
million.Afranchisetaxisdueonthegreaterofthetax
calculatedonauthorizedsharesorgrossassets($35
minimum,$165,000maximum).
Florida
5.5%
Georgia
Hawaii
6%
4.4%>$0
5.4>25K
TaxpayerswhoowefederalAMTmustpayhigherof
FLCorp.Inc.Taxor3.3%alternativeminimumrate.
Banksandfinancialinstitutionsaretaxedat7.92%.An
alternativetaxoncapitalgainsisimposedatarateof
4%.
6.4>100K
Idaho
7.6%
Minimumtax$20.
Illinois
7.3%
Includes2.5%incomereplacementtax.1.5%forS
Corps.
Indiana
Iowa
8.5%
6.0%>$0
8.0>25K
10.0>100K
12.0>250K
Kansas
4%>$0
50%federaldeductibility.Financialinstitutionsare
subjecttoa5%franchisetax.
7.35>50K
Kentucky
4.%>$0
5.0>50K
6.0>100K
Louisiana
4.0%>$0
5.0>25K
6.0>50K
Corporationsmustalsopaythelargerofagross
receiptstaxequalto0.095%ofgrosssalesor0.75%
ofgrossprofits,oraminimumtaxof$175.
Federaldeductibility.Corporationfranchisetax:$1.50
foreach$1000upto$300,000ofcapitalemployedin
LAand$3foreach$1000over$300,000.
7.0>100K
8.0>200K
Maine
3.5%>$0
7.93>25K
8.33>75K
8.93>250K
AnAMTisimposedat5.4%.Banksandfinancial
institutionsmustchoosetopayeither1%ofincome
plus0.008%ofassets,or0.039%ofassetsonly.
Maryland
8.25%
Massachusetts
9.50%
Thereisanadditionaltaxof$2.60per$1,000on
taxabletangibleproperty(ornetworthallocableto
state,forintangiblepropertycorporations)minimum
taxof$456.10.5%onfinancialinstitutions.
Michigan
4.95%
Thereisanadditionalmodifiedgrossreceiptstax
(salesminuspurchasesfromotherfirms)atarateof
0.8%.Bankspayataxonnetworthatarateof
0.235%.
Minnesota
9.8%
5.8%alternativeminimumtaxrate.Aminimumtaxis
leviedbasedonMinnesotaproperty,payrollandsales.
Mississippi
Franchisetaxof$2.50per$1,000withminimumtaxof
$25
Missouri
3.0%>$0
4.0>5K
5.0>10K
6.25%
Montana
6.75%
7%forcorporationsfilingunderawater'sedge
election.Minimumtaxis$50.
Nebraska
5.58%>$0
7.81>50K
Nevada
None
NewHampshire
8.5%>$50K
9.25>150K
NewJersey
6.5%>$0
7.5>50K
9.0>100K
Additionalfranchisetaxat0.0333%.7%onfinancial
institutions.50%offederaltaxdeductible.
ItstwocorporatetaxestheBusinessProfitsTax
(BPT)andtheBusinessEnterpriseTax(BET)have
differentratesandbases.TheBPTrateis8.5%on
grossincomeover$50K.TheBETrateiseither0.75%
ongrossincomeover$150K,or0.75%ontotal
compensationpaidout,includingdividendsand
interest,over$75K,making9.25%thetopratea
corporationmayface.
Companieswithincomegreaterthan$100Kpay9%
onallincome,companieswithincomegreaterthan
$50Kbutlessthan$100Kpay7.5%onallincomeand
companieswithincomeunder$50Kpay6.5%.The
minimumtaxis$500.AnAlternativeMinimum
AssessmentbasedonGrossReceiptsappliesif
greaterthancorporatefranchisetaxforoutofstate
companieswithNewJerseysales.4%surtaxfor
companieswithNewJerseysales.4%surtaxfor
2007.
NewMexico
4.8%>$0
6.4>500K
7.6>1,000,000
NewYork
7.1%
Businessespaygreatestofregularincometax,1.5%
AMT,0.178%ofcapitalbase,orafixeddollar
minimumtaxbetween$100and$1500.Thereisan
additional0.09%taxonsubsidiarycapital.
NorthCarolina
6.9%
Thefranchisetaxrateis$1.50per$1,000,witha
minimumof$35.
NorthDakota
2.6%>$0
4.1>3K
5.6>8K
6.4>20K
6.5>30K
5.1%>$0
7%forfinancialinstitutionswithaminimumof$50.
Corporationsmakingawater'sedgeelectionmustpay
anadditional3.5%tax.
Ohio
8.5>50K
Avalueaddedstyletax,theCorporateActivitiesTax
(CAT)wasinstitutedin2005.Itwillbephasedin
through2010whiletheCorporateFranchiseTax
(Ohio'sincometax)isphasedout.BeginningApril1,
2008theCATrateis.208%(80%of.26%).Fortax
year2008companiesowe40%ofCorporate
FranchiseTaxliability.
Additionalfranchisetaxof$1.25foreach$1,000of
capitalinvestedorusedinOklahoma.
Oklahoma
6.0%
Oregon
6.6%
Minimumtax$10.
Pennsylvania
9.99%
Imposesacapitalstockandforeignfranchisetaxof
0.289%ontaxableincomeover$125K.Bankand
TrustCompanySharesTaxis1.25%.
RhodeIsland
9.0%
Greaterof9%ofnetincomeapportionedtoRhode
Island,orafranchisetaxonauthorizedcapitalstockat
therateof$2.50foreach$10,000.00orfractionalpart
thereof(minimumof$500).
SouthCarolina
5.0%
SouthDakota
None
6%onabank'snetincome.Minimumtaxis$200per
location(banks).
Tennessee
6.5%
Franchisetaxof.25%ofthegreaterofnetworthor
realandtangibleproperty(minimum$100)
Texas
1.0%
Texas's1%franchisetaxisagrossreceiptstaxpaid
bymosttaxableentities.Retailerspay0.5%.
Utah
5.0%
Minimumtax$100.
Vermont
Minimumtax$250.
Virginia
6.0%>$0
7.0>10k
8.5>25k
6.0%
Washington
RateVaries
WestVirginia
8.75%
Washingtonhasnoincometaxbuthasagross
receiptstaxcalledtheBusiness&Occupation(B&O)
Taxwhichisleviedatvariousrates.Themajorrates
are0.471%forretailsales,0.484%forwholesaleand
manufacturing,and1.5%forserviceandother
activities.
Businessfranchisetaxof.55%oftaxablecapital,ora
minimumof$50.
Wisconsin
Wyoming
7.9%
None
DistrictofColumbia
9.975%
Bankfranchisetaxis1.0%.
Minimumtaxis$100.Ballparkgrossreceiptstax
leviedongrossreceiptsover$5millionatvarying
rates.
Sources:TaxFoundationandeachstate'staxformsandinstructions
TaxFoundation
Ph:(202)4646200
AsofJanuary1,2007
(2007'snoteworthychangesinbolditalics)
State
Alabama
Alaska
TaxRatesand
Brackets
California
6.50%
1.0%>$0
2.0>10K
3.0>20K
4.0>30K
5.0>40K
6.0>50K
7.0>60K
8.0>70K
9.0>80K
9.4>90K
6.968%
1.0%>$0
2.0>3K
3.0>6K
5.0>11K
6.0>25K
6.5>100K
8.84%
Colorado
Connecticut
4.63%
7.50%
Delaware
Florida
8.70%
5.50%
Georgia
Hawaii
6.00%
4.4%>$0
5.4>25K
6.4>100K
7.60%
7.30%
Arizona
Arkansas
Idaho
Illinois
Indiana
Iowa
Kansas
8.50%
6.0%>$0
8.0>25K
10.0>100K
12.0>250K
4%>$0
7.35>50K
SpecialRatesorNotes
Minimumtaxis$50.
financialSCorporations).
20%surchargefor2006. Payhigherofincometaxor
taxoncapital(3.5mills$1,000,000maximum).
IfpaidfederalAMT,mustpayFLhigherofCorp.Inc.
Taxor3.3%alternativeminimumrate.
4%capitalgainsrate
Minimumtaxis$20.
Corps.
50%federaldeductibility
3.35%surtaxover$50,000
Kentucky
4.%>$0
5.0>50K
7.0>100K
CorporationspaythelargestoftheCorporateIncome
Tax,agrossreceiptstaxcomputedoneitherinstate
salesorgrossprofits,oraminimumtaxof$175.
Louisiana
Maryland
Massachusetts
4.0>$0
5.0>25K
6.0>50K
7.0>100K
8.0>200K
3.5%>$0
7.93>25K
8.33>75K
8.93>250K
7.00%
9.50%
Michigan
1.90%
ModifiedVATappliestogrossreceipts,calledthe
SingleBusinessTax(SBT).Mustfileifgrossreceipts
over$350K.TheSBTwillberepealedasofDecember
31,2007.Michiganlawmakersarecurrentlydebating
planstoreplacetheSBT.
Minnesota
9.8%
Mississippi
3.0%>$0
4.0>5K
5.0>10K
6.25%
$25
Maine
Missouri
Additionaltaxof$2.60per$1,000ontaxabletangible
property(ornetworthallocabletostate,forintangible
propertycorporations)minimumtaxof$456.10.5%on
financialinstitutions.
7%onfinancialinstitutions50%offederaltax
deductible.
Montana
6.75%
Nebraska
5.58%>$0
7.81>50K
None
Nevada
7%forcorporationsfilingunderawater'sedgeelection.
Minimumtaxis$50.
NewHampshire
8.5%>$50K
9.25%>150K
corporationmayface.
NewJersey
6.5%>$0
7.5%>$50K
9.0%>$100K
Theminimumtaxis$500.AnAlternativeMinimum
AssessmentbasedonGrossReceiptsappliesif
greaterthancorporatefranchisetaxforoutofstate
companieswithNewJerseysales.Companieswith
incomegreaterthan$100Kpay9%onallincome,
companieswithincomegreaterthan$50Kbutlessthan
$100Kpay7.5%onallincomeandcompanieswith
incomeunder$50Kpay6.5%.4%surtaxfor2006.
NewMexico
NewYork
4.8%>$0
6.4%>500K
7.6%>1,000,000
7.50%
NorthCarolina
NorthDakota
6.90%
2.6%>$0
Ohio
4.1%>3K
5.6%>8K
6.4%>20K
7.0%>30K
5.1%>$0
Taxratesforsmallbusinesstaxpayers:Thetaxrateon
entirenetincome(ENI)forasmallbusinesstaxpayer
withENIof$290,000is6.5%fortaxyearsbeginning
afterJanuary1,2005.
7%forfinancialinstitutionsminimumtaxis$50.
AValueAddedstyletax,theCorporateActivities
Tax(CAT)wasinstitutedin2005.Itwillbephased
8.5%>50K
Oklahoma
Oregon
Pennsylvania
6.00%
6.60%
9.99%
RhodeIsland
9.00%
SouthCarolina
SouthDakota
5.00%
None
Tennessee
Texas
6.50%
4.50%
Utah
Vermont
Virginia
Washington
5.00%
6.0% >$0
7% >10K
8.75% >25K
8.9% >250K
6.00%
None
WestVirginia
9.00%
Wisconsin
7.90%
Wyoming
None
Tax(CAT)wasinstitutedin2005.Itwillbephased
inthrough2010whiletheCorporateFranchiseTax
(Ohiocorporateincometax)isphasedout.The
ratein2006is40%of.26%,or.104%.Fortaxyear
2006Ohiocompaniesowe60%ofCorporate
FranchiseTaxliability.
Imposesacapitalstockandfranchisetaxof0.489%on
taxableincomeover$125K.
Ninepercent(9%)ofnetincomeapportionedtoRhode
Islandoranannualfranchisetaxonauthorizedcapital
stockattherateof$2.50foreach$10,000.00or
fractionalpartthereofminimumof$500,whichever
amountshallyieldthegreatesttax.
6%0.25%onabank'snetincome.Minimumtaxis
$200perlocation(banks).
Rateisonnettaxableearnedsurplusbuthasbeen
repealedasofJanuary1,2007andreplacedwitha
grossreceiptstaxcalledtheTexasMarginsTax
thatleviesa1%taxonthegrossreceiptsofall
Texascompanies.
Minimumtaxis$100.
Minimumtaxis$250.
GrossreceiptstaxcalledBusiness&Occupation
(B&O)Tax.
Businessfranchisetaxof.7%oftaxablecapital,ora
minimumof$50.
Minimumtaxis$100.Includes5%surtax.Ballpark
grossreceiptstaxleviedongrossreceiptsover$5
millionatvaryingrates.
Note:BoldItalicsindicatenoteworthytaxchangesduring2006.
Sources:TaxFoundationandeachstate'staxformsandinstructions
TaxFoundation
Ph:(202)4646200
AsofJanuary1,2006
State
Alabama
Alaska
TaxRatesand
Brackets
California
6.50%
1.0%>$0
2.0>10K
3.0>20K
4.0>30K
5.0>40K
6.0>50K
7.0>60K
8.0>70K
9.0>80K
9.4>90K
6.968%
1.0%>$0
2.0>3K
3.0>6K
5.0>11K
6.0>25K
6.5>100K
8.84%
Colorado
Connecticut
Delaware
Florida
4.63%
7.50%
8.70%
5.50%
Georgia
Hawaii
6.00%
4.4%>$0
5.4>25K
6.4>100K
7.60%
7.30%
Arizona
Arkansas
Idaho
Illinois
Indiana
Iowa
Kansas
8.50%
6.0%>$0
8.0>25K
10.0>100K
12.0>250K
4%
SpecialRatesorNotes
FederalDeductibility
Minimumtaxis$50.
Corporationswithnetincomesexceeding$100,000,
6.5%ofentirenetincome.3%Surchargeon
TaxPaid.
10.84%onfinancialinstitutions.Minimumtaxis$800.
banks).
IfpaidfederalAMT,mustPayFLhigherofCorp.Inc.
Taxor3.3%alternativeminimumrate.
4%capitalgainsrate,7.92%onfinancialinstitutions.
Minimumtaxis$20.
Corps.
5%onfinancialinstitutions50%federaldeductibility.
3.35%surtaxover$50,000Banks2.25%plus2.125%
surtaxover$25,000.
Kentucky
4.%>$0
5.0>50K
CorporationspaythelargestoftheCorporateIncome
Tax,agrossreceiptstaxcomputedoneitherinstate
salesorgrossprofits,oraminimumtaxof$175
7.0>100K
Louisiana
Federaldeductibility.
Maryland
Massachusetts
4.0>$0
5.0>25K
6.0>50K
7.0>100K
8.0>200K
3.5%>$0
7.93>25K
8.33>75K
8.93>250K
7.00%
9.50%
Michigan
1.9%>$45K
ModifiedVATappliestogrossreceipts.Mustfileif
grossreceiptsover$250K.$45Kdeductible.Taxrate
reductionby0.1percentwaslegislatedin1998when
ratewas2.3percent,withintenttophasetaxoutover
23years.IfstatesBudgetStabilizationFundbalance
fallsbelow$250millionforafiscalyear,thenext
calendaryearsreductioniscanceled.
Minnesota
9.8%
Mississippi
3.0%>$0
4.0>5K
5.0>10K
6.25%
$25.
Maine
Missouri
Rateincludes14%surtax,asdoesthefollowing:an
additionaltaxof$2.60per$1,000ontaxabletangible
financialinstitutions10.91%onsavingsandloan
associations.
deductible.
Montana
6.75%
Nebraska
5.58%>$0
7.81>50K
None
Nevada
Minimumtaxis$50.
NewHampshire
8.5%>$50K
9.25%>150K
corporationmayface.
NewJersey
6.5%>$0
7.5%>$50K
9.0%>$100K
NewMexico
4.8%>$0
6.4%>500K
7.6%>1,000,000
Theratereportedinthetableisthecorporation
businessfranchisetaxrate.Theminimumtaxis$500.
AnAlternativeMinimumAssessmentbasedonGross
Receiptsappliesifgreaterthancorporatefranchisetax.
Corporationsnotsubjecttothefranchisetaxare
subjecttoa7.25%incometax.Bankingandfinancial
corporationsaresubjecttothefranchisetax.
Corporationswithnetincomeunder$100,000aretaxed
at6.5%.ThetaxonScorporationsisbeingphasedout
through2007.ThetaxrateonaNewJerseyS
corporationthathasentirenetincomenotsubjectto
federalcorporateincometaxinexcessof$100,000will
remainat1.33%forprivilegeperiodsendingonor
beforeJune30,2006.Theratewillbe0.67%for
privilegeperiodsendingonorafterJuly1,2006,buton
orbeforeJune30,2007andtherewillbenotax
imposedforprivilegeperiodsendingonorafterJuly1,
2007.ThetaxonScorporationwithentirenetincome
notsubjecttofederalcorporateincometaxof$100,00
orlessiseliminatedforprivilegeperiodsendingonor
afterJuly1,2007
NewYork
7.50%
NorthCarolina
NorthDakota
6.90%
2.6%>$0
Ohio
4.1%>3K
5.6%>8K
6.4%>20K
7.0%>30K
5.1%>$0
8.5>50K
Oklahoma
Oregon
Pennsylvania
6.00%
6.60%
9.99%
RhodeIsland
9.00%
SouthCarolina
SouthDakota
5.00%
None
Tennessee
Texas
Utah
Vermont
6.50%
4.50%
5.00%
7.0%>$0
TaxratesforsmallbusinesstaxpayersThetaxrate
onentirenetincome(ENI)forasmallbusiness
taxpayerwithENIof$290,000is6.5%fortaxyears
beginningafterJanuary1,2005.
7%forfinancialinstitutionsFederaldeductibility.
Minimumtaxis$50.
AValueAddedstyletax,theCorporateActivitiesTax
(CAT)wasinstitutedin2005.Itwillbephasedin
through2010whiletheCorporateFranchiseTax(Ohio
corporateincometax)isphasedout.Theratein2005
is23%of.26%,or.0598%
Minimumtaxis$10.
Islandoranannualfranchisetaxonitsauthorized
capitalstockattherateof$2.50foreach$10,000.00or
fractionalpartthereofminimumof$500,whichever
Rateisonnettaxableearnedsurplus.
Minimumtaxis$100.
Minimumtaxis$250.
Virginia
Washington
8.1>10K
9.2>25K
9.75>250K
6.00%
None
WestVirginia
9.00%
Wisconsin
7.90%
Wyoming
None
GrossreceiptstaxcalledBusiness&Operations(B&O)
Tax.
"Businessfranchisetax"of$0.70percentoftaxable
capital,oraminimumof$50.
Minimumtaxis$100.Includes5%surtax.Ballpark
grossreceiptstaxleviedongrossreceiptsover$5
millionatvaryingrates.
Sources:TaxFoundationEachstate'staxformsandinstructionsCommerceClearingHouse.
TaxFoundation
Ph:(202)4646200
AsofJanuary1,2005
State
Alabama
Alaska
TaxRatesand
Brackets
California
6.50%
1.0%>$0
2.0>10K
3.0>20K
4.0>30K
5.0>40K
6.0>50K
7.0>60K
8.0>70K
9.0>80K
9.4>90K
6.97%
1.0%>$0
2.0>3K
3.0>6K
5.0>11K
6.0>25K
6.5>100K
8.84%
Colorado
Connecticut
Delaware
Florida
4.63%
7.50%
8.70%
5.50%
Georgia
Hawaii
6.00%
4.4%>$0
5.4.25K
6.4>100K
7.60%
7.30%
8.50%
6.0%>$0
8.0>25K
10.0>100K
12.0>250K
4%
Arizona
Arkansas
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
4.%>$0
5.0>25K
SpecialRatesorNotes
Minimumtaxis$50.
Corporationswithnetincomesexceeding$100,000,
6.5%ofentirenetincome.
10.84%onfinancialinstitutions.Minimumtaxis$800.
banks).
3.3%alternativeminimumrate.Anexemptionof$5,000
isallowed
Minimumtaxis$20.
Includes2.5%incomereplacementtax.
5%onfinancialinstitutions7.2%alternativeminimum
rate50%federaldeductibility.
surtaxover$25,000.
Maryland
Massachusetts
6.0>50K
7.0>100K
8.25>250K
4.0>$0
5.0>25K
6.0>50K
7.0>100K
8.0>200K
3.5%>$0
7.93>25K
8.33>75K
8.93>250K
7.00%
9.50%
Michigan
1.9%>$45K
ModifiedVATappliestogrossreceipts.Mustfileif
grossreceiptsover$250K.$45Kdeductible.Taxrate
reductionby0.1percentwaslegislatedin1998when
ratewas2.3percent,withintenttophasetaxoutover
23years.IfstatesBudgetStabilizationFundbalance
fallsbelow$250millionforafiscalyear,thenext
calendaryearsreductioniscanceled.
Minnesota
9.8%
Mississippi
3.0%>$0
4.0>5K
5.0>10K
6.25%
$25.
Louisiana
Maine
Missouri
27%offederalalternativeminimumtaxliability.
financialinstitutions10.91%onsavingsandloan
associations.
deductible.
Montana
6.75%
Nebraska
5.58%>$0
7.81>50K
None
Nevada
Minimumtaxis$50.Minimumtaxforsmallbusiness
corporationsis$10.
NewHampshire
8.5%>$50K
9.25%>150K
corporationmayface.
NewJersey
6.5%>$0
7.5%>$50K
9.0%>$100K
businessfranchisetaxrate.Theminimumtaxis
$500.AnAlternativeMinimumAssessmentbased
onGrossReceiptsappliesifgreaterthancorporate
franchisetax.Corporationsnotsubjecttothe
franchisetaxaresubjecttoa7.25%incometax.
Bankingandfinancialcorporationsaresubjectto
thefranchisetax.Corporationswithnetincome
under$100,000aretaxedat6.5%.ThetaxonS
corporationsisbeingphasedoutthrough2007.
ThetaxrateonaNewJerseyScorporationthat
hasentirenetincomenotsubjecttofederal
corporateincometaxinexcessof$100,000will
remainat1.33%forprivilegeperiodsendingonor
beforeJune30,2006.Theratewillbe0.67%for
privilegeperiodsendingonorafterJuly1,2006,
butonorbeforeJune30,2007andtherewillbeno
taximposedforprivilegeperiodsendingonor
afterJuly1,2007.ThetaxonScorporationwith
entirenetincomenotsubjecttofederalcorporate
NewMexico
4.8%>$0
6.4%>500K
7.6%>1,000,000
NewYork
7.50%
NorthCarolina
NorthDakota
6.90%
2.6%>$0
Ohio
4.1%>3K
5.6%>8K
6.4%>20K
7.0%>30K
5.1%>$0
8.5>50K
Oklahoma
Oregon
Pennsylvania
6.00%
6.60%
9.99%
RhodeIsland
9.00%
SouthCarolina
SouthDakota
5.00%
None
Tennessee
Texas
Utah
Vermont
6.50%
None
5.00%
7.0%>$0
8.1>10K
taxpayerwithENIof$200,000orlesswillbereduced
from7.5%to6.85%fortaxyearsbeginningafterJune
30,2003.ThetaxrateonENIforasmallbusiness
taxpayerwithENIgreaterthan$200,000willbe
reducedfrom7.5%toaratebetween6.85%and7.5%
fortaxyearsbeginningafterJune30,2003.2.5%
surtaxrate.
7%forfinancialinstitutionsplus2%surtaxrate
Federaldeductibility.Minimumtaxis$50.
Forfinancialinstitutions,0.015timesvalueofstock.
Minimumtaxis$50.Thenetworthrateforcorporations
otherthanfinancialinstitutionis4mills.Taxpayers.The
networthrateforfinancialinstitutionsisthirteenmills.
Financialinstitutionsareexemptfromthenetincome
base.
Minimumtaxis$10.
Islandoranannualfranchisetaxonitsauthorized
capitalstockattherateof$2.50foreach$10,000.00or
fractionalpartthereofminimumof$250.00,whichever
Minimumtaxis$100.
Minimumtaxis$250.
Virginia
Washington
9.2>25K
9.75>250K
6.00%
None
WestVirginia
9.00%
Wisconsin
7.90%
Wyoming
None
Grossreceiptstax.The20differentratesrangefrom
0.011%5.029%dependingonthetypeofbusiness
activity.
"Businessfranchisetax"of$0.70per$100oftaxable
Minimumtaxis$100.Includes5%surtax.
Sources:TaxFoundationEachstate'staxformsandinstructionsCommerceClearingHouse
FederationofTaxAdministrators.
TaxFoundation
Ph:(202)4646200
AsofJanuary1,2004
State
Alabama
Alaska
TaxRatesand
Brackets
California
6.50%
1.0%>$0
2.0%>$10K
3.0%>$20K
4.0%>$30K
5.0%>$40K
6.0%>$50K
7.0%>$60K
8.0%>$70K
9.0%>$80K
9.4%>$90K
6.97%
1.0%>$0
2.0%>$3K
3.0%>$6K
5.0%>$11K
6.0%>$25K
6.5%>$100K
8.84%
Colorado
Connecticut
Delaware
Florida
4.63%
7.50%
8.70%
5.50%
Georgia
Hawaii
Kansas
6.00%
4.4%>$0
5.4%$25K
6.4%>$100K
7.60%
7.30%
8.50%
6.0%>$0
8.0%>$25K
10.0%>$100K
12.0%>$250K
4%
Kentucky
4.%>$0
Arizona
Arkansas
Idaho
Illinois
Indiana
Iowa
SpecialRatesorNotes
Minimumtaxis$50.
Corporationswithnetincomesexceeding$100,000,6.5%
ofentirenetincome.
10.84%onfinancialinstitutions.6.65%alternative
minimumtaxrate(2%forfinancialinstitutions).Minimum
taxis$800.
3.3%alternativeminimumrate.Anexemptionof$5,000is
allowed
Minimumtaxis$20.
Includes2.5%incomereplacementtax.
surtaxover$25,000.
5.0%>$25K
6.0%>$50K
7.0%>$100K
8.25%>$250K
Louisiana
4.0>$0
5.0>25K
6.0>50K
7.0>100K
8.0>200K
Maine
3.5%>$0
7.93>25K
8.33>75K
8.93>250K
Maryland
7.00%
Massachusetts 9.50%
Michigan
1.9%>$45K
Minnesota
9.8%
Mississippi
Missouri
3.0%>$0
4.0%>$5K
5.0%>$10K
6.25%
Montana
6.75%
property(ornetworthallocabletostate,for
intangiblepropertycorporations)minimumtaxof
$456.10.5%onfinancialinstitutions10.91%on
savingsandloanassociations
ModifiedVATappliestogrossreceipts.Mustfileifgross
receiptsover$250K.$45Kdeductible.Taxratereduction
by0.1percentwaslegislatedin1998whenratewas2.3
percent,withintenttophasetaxoutover23years.If
statesBudgetStabilizationFundbalancefallsbelow$250
millionforafiscalyear,thenextcalendaryearsreduction
iscanceled.
$25.
7%onfinancialinstitutions50%offederaltaxdeductible.
corporationsis$10.
Nebraska
Nevada
New
Hampshire
5.58%>$0
7.81%>$50K
None
8.5%>$50K
ItstwocorporatetaxestheBusinessProfitsTax(BPT)
andtheBusinessEnterpriseTax(BET)havedifferent
9.25%>$150K
ratesandbases.TheBPTrateis8.5%ongrossincome
over$50K.TheBETrateiseither0.75%ongrossincome
over$150K,or0.75%ontotalcompensationpaidout,
includingdividendsandinterest,over$75K,making
9.25%thetoprateacorporationmayface.
NewJersey
9.0%
NewMexico
businessfranchisetaxrate.Theminimumtaxis$500.
AnAlternativeMinimumAssessmentbasedonGross
Receiptsappliesifgreaterthancorporatefranchise
tax.Corporationsnotsubjecttothefranchisetaxare
subjecttoa7.25%incometax.Bankingandfinancial
corporationsaresubjecttothefranchisetax.
Corporationswithnetincomeunder$100,000are
taxedat6.5%.ThetaxonScorporationsisbeing
phasedoutthrough2007.ThetaxrateonaNew
JerseyScorporationthathasentirenetincomenot
4.8%>$0
6.4%>$500K
7.6%>$1million
7.50%
taxpayerwithENIof$200,000orlesswillbereduced
from7.5%to6.85%fortaxyearsbeginningafterJune
30,2003.ThetaxrateonENIforasmallbusiness
taxpayerwithENIgreaterthan$200,000willbe
reducedfrom7.5%toaratebetween6.85%and7.5%
fortaxyearsbeginningafterJune30,2003. 2.5%
surtaxrate.
6.90%
3.0%>$0
5%forfinancialinstitutionsplus2%surtaxrateFederal
deductibility.
4.5%>$3K
6.0%>$8K
Minimumtaxis$50.
7.5%>$20K
9.0%>$30K
10.5%>$50K
5.1%>$0
Minimumtaxis$50.Thenetworthrateforcorporations
8.5%>$50K
otherthanfinancialinstitutionis4mills.Taxpayers.The
networthrateforfinancialinstitutionsisthirteenmills.
Financialinstitutionsareexemptfromthenetincome
base.
NewYork
NorthCarolina
NorthDakota
Ohio
Oklahoma
Oregon
6.00%
6.60%
Minimumtaxis$10.
Pennsylvania
9.99%
RhodeIsland
9.00%
Islandoranannualfranchisetaxonitsauthorizedcapital
stockattherateof$2.50foreach$10,000.00orfractional
partthereofminimumof$250.00,whicheveramountshall
yieldthegreatesttax.
SouthCarolina
SouthDakota
5.00%
None
6%0.25%onabank'snetincome.Minimumtaxis$200
perlocation(banks).
Tennessee
Texas
Utah
Vermont
Virginia
Washington
6.50%
None
5.00%
7.0%>$0
8.1%>$10K
9.2%>$25K
9.75%>$250K
6.00%
None
WestVirginia
9.00%
Wisconsin
Wyoming
Districtof
Columbia
7.90%
None
9.98%
Minimumtaxis$100.
Minimumtaxis$250.
activity.
"Businessfranchisetax"of$0.70per$100oftaxable
Minimumtaxis$100.Includes5%surtax.
TaxFoundation
Ph:(202)4646200
AsofJanuary1,2003
State
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
TaxRatesand
Brackets
5.00%
1.0%>$0
2.0>10K
3.0>20K
4.0>30K
5.0>40K
6.0>50K
7.0>60K
8.0>70K
9.0>80K
9.4>90K
6.97%
1.0%>$0
2.0>3K
3.0.6K
5.0>11K
6.0>25K
6.5>100K
8.84%
Idaho
Illinois
Indiana
4.63%
7.50%
8.70%
5.50%
6.00%
4.4%>$0
5.4.25K
6.4>100K
7.60%
4.80%
3.40%
Iowa
6.0%>$0
Kansas
8.0.25K
10.0>100K
12.0>250K
4%>$0
7.35>50K
SpecialRatesorNotes
6.5%onfinancialinstitutions.
Minimumtaxis$50.
Corporationswithnetincomesexceeding$100,000,6.5%
ofentirenetincome.
3.3%alternativeminimumrate.
Minimumtaxis$20.
2.5%incomereplacementtax.
4.5%onsupplementalincome.Rateincreasesto8.5%
in2003.
surtaxover$25,000.
Kentucky
Louisiana
Maine
4.%>$0
5.0>25K
6.0>50K
7.0>100K
8.25>250K
4.0>$0
5.0.25K
6.0>50K
7.0>100K
8.0>200K
3.5%>$0,7.93> 27%offederalalternativeminimumtaxliability.
25,000,8.33>
75.000,8.93>
250,000
Maryland
7.00%
Massachusetts 9.50%
Michigan
1.9%>$45,000
Minnesota
9.8%
Mississippi
3.0%>$0
4.0>5K
5.0>10K
6.25%
6.75%
Missouri
Montana
Franchisetaxbuiltintorate(.26%per$1,000ofincome)
10.5%onfinancialinstitutions10.91%onsavingsand
loanassociations.Minimumtaxis$456.
ModifiedVAT.Rateappliestogrossreceipts.Mustfile
onlywithgrossreceiptsover$250,000.$45,000
deductible.TheSBTtaxratewillcontinuetobereduced
by0.1percentannuallyfromits1998rateof2.3percent.
Thetaxratereduction,whichbeganJanuary1,1999,will
continueuntiltheSBTiscompletelyphasedoutover23
years,unlesstheState'sBudgetStabilizationFund
balanceforafiscalyearfallsbelow$250million.Ifthat
shouldhappen,thenextcalendaryear'sreductionwillnot
takeplace.
$25.
7%onfinancialinstitution50%offederaltaxdeductible.
corporationsis$10.
Nebraska
Nevada
New
Hampshire
5.58%>$0
7.81>50K
None
8.5%
Mustfilebusinessprofitstaxonlywithgrossreceiptsover
$50,000.
NewJersey
9.0%
Businesseswithover$100,000ingrossreceiptsor
wages,interest,anddividendsover$50,000aresubject
to0.5%businessenterprisetaxontotalvalueofwages,
interest,anddividends.Suchbusiness'BPTliabilityis
reducedbysumofBETliability.
Corporationswithentirenetincomeoflessthan$100,000
pay7.5%.
Minimumtaxis$200.
NewMexico
4.8%>$0
6.4%>500K
7.6%>1,000K
NewYork
7.50%
NorthCarolina 6.90%
NorthDakota
3.0%>$0
Ohio
4.5>3K
6.0>8K
7.5>20K
9.0>30K
10.5>50K
5.1%>$0
8.5>50K
Oklahoma
6.00%
Oregon
6.60%
Pennsylvania 9.99%
RhodeIsland 9.00%
SouthCarolina 5.00%
SouthDakota None
Tennessee
Texas
Utah
Vermont
Virginia
Washington
6.00%
None
5.00%
7.0%>$0
8.1>10K
9.2>25K
9.75>250K
6.00%
None
WestVirginia 9.00%
Wisconsin
Wyoming
7.90%
None
Theratefellto7.5%afterJune30,2001.2.5%surtax
5%forfinancialinstitutionsplus2%surtaxrateFederal
deductibility.
Minimumtaxis$50.
Minimumtaxis$50.
Minimumtaxis$10.
Imposesa"CapitalStockandFranchiseTax."
Minimumtaxis$250.
6%0.25%onabank'snetincome.Minimumtaxis$200
perlocation(banks).
Minimumtaxis$100.
Minimumtaxis$250.
Districtof
Columbia
9.50%
Includes5%surtax.Minimumtaxis$100.
Sources:TaxFoundationEachstate'staxformsandinstructionsCommerceClearing
HouseFederationofTaxAdministrators.
TaxFoundation
Ph:(202)4646200
AsofJanuary,2002
State
TaxRatesand
Brackets
Alabama
5%>$0
Alaska
1%>$0
2%>$9,999
3%>$19,999
4%>$29,999
5%>$39,999
6%>$49,999
7%>$59,999
8%>$69,999
9%>$79,999
9.4%>$89,999
6.968%>$0
1%>$3K
2%>$3K
3%>$6K
5%>$11K
6%>$25K
6.5%>$100K
8.84%>$0
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Kansas
4.63%>$0
7.5%>$0
8.7%>$0
5.5%>$0
6%>$0
4.4%>$0
5.4%>$25K
6.4%>$100K
7.6%>$0
4.8%>$0
3.4%>$0
6%>$0
8%>$25K
10%>$100K
12.0%>$250K
4%>$0
Kentucky
4%>$0
Idaho
Illinois
Indiana
Iowa
SpecialRatesorNotes
6%onfinancialinstitutions(6.5%afterJanuary1,2001)
federaldeductibility.
Minimumtaxis$50.
Fornetincomesexceeding$100K,6.5%ofentirenet
income.
taxis$800.
3.3%alternativeminimumrate.
Minimumtaxis$20.
2.5%incomereplacementtax.
4.5%onsupplementalincome.
surtaxover$25K.
Louisiana
Maine
Maryland
5%>$25K
6%>$50K
7%>$100K
8.25>$250K
4%>$0K
5%>$25K
6%>$50K
5%>$100K
8%>$200K
3.5%>$0
7.93%>$25K
8.33%>$75K
8.93%>250K
7%>$0
Massachusetts 9.5%>$0
Franchisetaxbuiltintorate(.26%per$1,000ofincome)
10.5%onfinancialinstitutions10.91%onsavingsand
loanassociations.Minimumtaxis$456.
Michigan
2%>$0
SingleBusinessTax(SBT)appliestogrossreceipts.Must
filewithgrossreceiptsover$250K.$45Kdeductible.By
lawtheSBTratedrops0.1percentannuallyfromits1998
rateof2.3percentuntilphasedout,butiftheBudget
StabilizationFundfallsbelow$250millionforafiscal
year,thenextcalendaryearsreductionisdeferred.
Minnesota
9.8%>$0
Mississippi
$25.
Missouri
3%>$0
4%>$5K
5%>$10K
6.25%>$0
Montana
6.75%>$0
7%forcorporationsfilingunderawatersedgeelection.
corporationsis$10.
Nebraska
5.58%>$0
7.81%>$50K
None
8.5%>$0
Nevada
New
Hampshire
7%onfinancialinstitution50%offederaltaxdeductible.
Mustfilebusinessprofitstaxifgrossreceiptsexceed
$50K.Abusinesswith$100Kingrossreceiptsor$50K
wages,interest,anddividendsissubjectto0.5%
businessenterprisetaxontotalvalueofwages,interest,
anddividends,inwhichcaseBPTliabilityisreducedby
sumofBETliability.
NewJersey
8.5%>$0
NewMexico
4.8%>$0
6.4%>$500K
7.6%>$1,000K
7.5%>$0
NewYork
NorthCarolina 6.9%>$0
NorthDakota 3%>$0
4.5%>$3K
6%>$8K
7.5%>$20K
9%>$30K
10.5%>$50K
Ohio
5.1%>$0
8.5>$50K
Rateis7.5%ifentirenetincomeislessthan$100K.
Minimumtax$200.
Theratefellto7.5%afterJune30,2001.2.5%surtax
rate.
Financialinstitutions:5%+2%surtaxratefederal
deductibility.Minimumtax$50.
Minimumtaxis$50.
Oklahoma
6%>$0
Oregon
6.6%>$0
Pennsylvania 10%>$0
Minimumtaxis$10.
Imposesa"CapitalStockandFranchiseTax."
RhodeIsland 9%>$0
SouthCarolina 5%>$0
Minimumtaxis$250.
SouthDakota None
6%0.25%onabanksnetincome.Minimumtaxis$200
perlocation(banks).
Tennessee
Texas
Utah
Vermont
Virginia
6%>$0
None
5%>$0
7%>$0
8.1%>$10K
9.2%>$25K
9.75>$100K
6%>$0
Washington
None
Minimumtaxis$100.
Minimumtaxis$250.
Grossreceiptstax:20rates(0.011%to.029%)depending
ontypeofbusiness.
WestVirginia 9%>$0
Wisconsin
7.9%>$0
Wyoming
None
Districtof
Columbia
9.5%>$0
Includes5%surtax.Minimumtaxis$100.
Sources:TaxFoundationEachstate'staxformsandinstructionsCommerceClearing
TaxFoundation
Ph:(202)4646200
AsofJanuary1,2001
State
Alabama
Low
No.of
Bracket
Rates Brackets (Under$)
5
n.a.
Alaska
Arizona
1.09.4
7.968
10
1
$10,000
n.a.
Arkansas
1.06.5
3,000
California
8.84
n.a.
4.63
7.5
8.7
5.5
6
4.46.4
1
1
1
1
1
3
n.a.
n.a.
n.a.
n.a.
n.a.
25,000
Idaho
Illinois
Indiana
Iowa
8
4.8
3.4
6.0
12.0
1
1
1
4
n.a.
n.a.
n.a.
25,000
Kansas
n.a.
4.0
8.25
4.08.0
3.5
8.93
7
25,000
5
4
25,000
25,000
n.a.
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Kentucky
Louisiana
Maine
Maryland
High
Bracket
(Over$) SpecialRatesorNotes
n.a.6%onfinancialinstitutions
(6.5%afterJanuary1,2001)
$90,000
n.a.Minimumtaxis$50.In2001,
ratewillfallto6.968%.
100,000Corporationswithnetincomes
exceeding$100,000,6.5%of
entirenetincome.
n.a.10.84%onfinancialinstitutions.
6.65%alternativeminimumtax
rate(2%forfinancialinstitutions).
Minimumtaxis$800.
n.a.
n.a.
n.a.
n.a.3.3%alternativeminimumrate.
n.a.
100,0004%capitalgainsrate,7.92%on
n.a.Minimumtaxis$20.
n.a.2.5%incomereplacementtax.
n.a.4.5%onsupplementalincome.
250,0005%onfinancialinstitutions
7.2%alternativeminimumrate
50%federaldeductibility.
n.a.3.35%surtaxover$50,000Banks
2.25%plus2.125%surtaxover
$25,000.
250,000
200,000Federaldeductibility.
250,00027%offederalalternative
minimumtaxliability.
n.a.
Massachusetts
9.5
n.a.
Michigan
2.1
45,000
Minnesota
9.8
n.a.
Mississippi
3.05.0
5,000
Missouri
6.25
n.a.
Montana
6.75
n.a.
Nebraska
5.58
7.81
None
8
50,000
n.a.
1
n.a.
n.a.
n.a.
n.a.Mustfilebusinessprofitstax
onlywithgrossreceiptsover
$50,000.Businesseswithover
$100,000ingrossreceiptsor
wages,interest,anddividends
over$50,000aresubjectto0.5%
businessenterprisetaxontotal
valueofwages,interest,and
dividends.Suchbusiness'BPT
liabilityisreducedbysumof
BETliability.
n.a.
n.a.Corporationswithentirenet
incomeoflessthat$100,000pay
7.5%.Minimumtaxis$200.
Nevada
New
Hampshire
NewJersey
n.a.Franchisetaxbuiltintorate(.26%
per$1,000ofincome)10.5%on
financialinstitutions10.91%on
savingsandloanassociations.
Minimumtaxis$456.
45,000ModifiedVAT.Rateappliesto
grossreceipts.Mustfileonlywith
grossreceiptsover$250,000.
$45,000deductible.TheSBTtax
ratewillcontinuetobereducedby
0.1percentannuallyfromits1998
rateof2.3percent.Thetaxrate
reduction,whichbeganJanuary1,
1999,willcontinueuntiltheSBTis
completelyphasedoutover23
years.
n.a.5.8%alternativeminimumtaxrate.
Aminimumtaxisleviedbasedon
Minnesotaproperty,payrolland
sales.
10,000Franchisetaxof$2.50per$1,000
withminimumtaxof$25.
n.a.7%onfinancialinstitution50%of
federaltaxdeductible.
n.a.7%forcorporationsfilingundera
water'sedgeelection.Minimum
taxis$50.Minimumtaxforsmall
businesscorporationsis$10.
50,000
NewMexico
NewYork
4.87.6
8
3
1
500,000
n.a.
6.9
n.a.
3.0
10.5
3,000
5.18.5
50,000
6
6.6
9.99
1
1
1
n.a.
n.a.
n.a.
9
5
1
1
n.a.
n.a.
SouthDakota
None
n.a.
n.a.
Tennessee
Texas
Utah
Vermont
6
None
5
7.0
9.75
6
None
1
n.a.
1
4
n.a.
n.a.
n.a.
10,000
1
n.a.
n.a.
n.a.
9
7.9
None
9.975
1
1
n.a.
1
n.a.
n.a.
n.a.
n.a.
North
Carolina
NorthDakota
Ohio
Oklahoma
Oregon
Pennsylvania
RhodeIsland
SouthCarolina
Virginia
Washington
WestVirginia
Wisconsin
Wyoming
Districtof
Columbia
1,000,000
n.a.AfterJune30,2000,thetaxrate
willdropfrom8.5%to8.0%.
2.5%surtaxrate.
n.a.
50,0005%forfinancialinstitutionsplus
2%surtaxrateFederal
deductibility.Minimumtaxis$50.
50,000Forfinancialinstitutions,0.015
timesvalueofstock.Minimumtax
is$50.
n.a.
n.a.Imposesa"CapitalStockand
FranchiseTax."
n.a.4.5%forbanks6%forsavings
andloans.
n.a.6%0.25%onabank'snetincome.
Minimumtaxis$200perlocation
(banks).
n.a.
n.a.
250,000Minimumtaxis$250.
n.a.
n.a.Grossreceiptstax.The20
differentratesrangefrom0.011%
5.029%
dependingonthetypeofbusiness
activity.
n.a.
n.a.
n.a.
n.a.Includes5%surtax.Minimumtax
is$100.
Note:Bold,Italicsindicatenoteworthytaxchangesduring2000.
Sources:TaxFoundationRespectivestatetaxformsandinstructionsCommerceClearing
TaxFoundation
Ph:(202)4646200
Fax:(202)4646201
AsofDecember31,2000
State
No.of LowBracket HighBracket

(Under$)
(Over$)
Rates Brackets
SpecialRatesorNotes
Alabama
5.00%
n.a.
Alaska
1.09.
4
8
10
$10,000
n.a.
Arkansas
1.06.
5
3,000
California
8.84
n.a.
Colorado
Connecticut
4.75%
8.5
1
1
n.a.
n.a.
Delaware
Florida
Georgia
Hawaii
8.7
5.5
6
4.46.
4%
1
1
1
3
n.a.
n.a.
n.a.
$25,000
n.a.
Illinois
4.8
n.a.
n.a.2.5%incomereplacementtax.
Indiana
3.4
n.a.
n.a.4.5%onsupplementalincome.
6.01
2.0
25,000
Kansas
4.00%
n.a.
Kentucky
4.08.
25
4.08.
0
3.58.
93
7
$25,000
25,000
200,000Federaldeductibility.
25,000
n.a.
250,00027%offederalalternative
minimumtaxliability.
n.a.
Arizona
Idaho
Iowa
Louisiana
Maine
Maryland
n.a.6%onfinancialinstitutions
$90,000
100,000Corporationswithnetincomes
exceeding$100,000,6.5%of
entirenetincome.
n.a.10.84%onfinancialinstitutions.
6.65%alternativeminimumtax
rate(2%forfinancialinstitutions.
Minimumtaxis$800.
n.a.
n.a.Taxratescheduledtofallto
7.5%after1999.
n.a.
n.a.3.3%alternativeminimumrate.
n.a.
$100,0004%capitalgainsrate,7.92%on
250,0005%onfinancialinstitutions7.2%
alternativeminimumrate50%
federaldeductibility.
n.a.3.35%surtaxover$50,000Banks
2.25%plus2.125%surtaxover
$25,000.
$250,000
Massachusetts 9.50%
n.a.
Michigan
0.02.
2
$45,000
Minnesota
9.8
n.a.
Mississippi
5,000
Missouri
3.05.
0
6.25
n.a.
Montana
6.75%
n.a.
Nebraska
5.58
7.81
None
$50,000
n.a.
n.a.
n.a.
New
Hampshire
n.a.
n.a.Mustfilebusinessprofitstaxonly
withgrossreceiptsover$50,000.
Businesseswithover$100,000in
grossreceiptsorwages,interest,
anddividendsover$50,000are
subjectto0.25%business
enterprisetaxontotalvalueof
wages,interest,anddividends.
SuchbusinessBPTliabilityis
reducedbysumofBETliability.
NewJersey
n.a.
NewMexico
4.87.
6%
9
$500,000
n.a.Corporationswithentirenet
incomeoflessthat$100,000pay
7.5%.Minimumtaxis$200.
$1,000,000
n.a.
n.a.2.5%surtaxrate.
n.a.
n.a.Taxratescheduledtofallto
6.9%after1999.
Nevada
NewYork
North
Carolina
n.a.Franchisetaxbuiltintorate(.26%
per$1,000ofincome)10.5%on
financialinstitutions10.91%on
savingsandloanassociations.
Minimumtaxis$456.
$45,000ModifiedVAT.Rateappliesto
grossreceipts.Mustfileonlywith
grossreceiptsover$250,000.
$45,000deductible.
n.a.5.8%alternativeminimumtaxrate.
Aminimumtaxisleviedbasedon
Minnesotaproperty,payrolland
sales.
10,000
n.a.7%onfinancialinstitution50%of
federaltaxdeductible.
n.a.7%forcorporationsfilingundera
watersedgeelection.Minimum
taxis$50.Minimumtaxforsmall
businesscorporationsis$10.
$50,000
NorthDakota
3.01
0.5
3,000
50,0005%forfinancialinstitutionsplus
2%surtaxrateFederal
deductibility.Minimumtaxis$50.
Ohio
5.18.
5
50,000
Oklahoma
Oregon
Pennsylvania
6%
6.6
9.99
1
1
1
n.a.
n.a.
n.a.
50,000Forfinancialinstitutions,0.015
timesvalueofstock.Minimumtax
is$50.
n.a.
n.a.Imposesa"CapitalStockand
FranchiseTax."
RhodeIsland
n.a.
SouthCarolina
n.a.
n.a.4.5%forbanks6%forsavings
andloans.
None
n.a.
n.a.
Tennessee
Texas
Utah
6.00%
None
5
1
n.a.
1
n.a.
n.a.
n.a.
n.a.6%1%onabanksnetincome.
Minimumtaxis$200perlocation
(banks).
n.a.
n.a.
Vermont
7.09.
75
6.00%
None
$10,000
1
n.a.
n.a.
n.a.
9
7.9
1
1
n.a.
n.a.
None
9.98%
n.a.
1
n.a.
n.a.
SouthDakota
Virginia
Washington
WestVirginia
Wisconsin
Wyoming
Districtof
Columbia
$250,000Minimumtaxis$250.
n.a.
n.a.Grossreceiptstax.The20
differentratesrangefrom
0.011%5.029%dependingonthe
typeofbusinessactivity.
n.a.
n.a.Temporaryrecyclingsurcharge
of2.75%ofgrosstaxapplies
onlytotaxableyearsthatend
beforeApril1,1999.
n.a.
n.a.Includes5%surtax.Minimumtax
is$100.
TaxFoundation
Ph:(202)4646200

State Corp Income Rates 2000-2012-20120216

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