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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

StateCorporateIncomeTaxRates
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
>
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$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

StateCorporateIncomeTaxRates
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
www.taxfoundation.org

StateCorporateIncomeTaxRates
AsofJanuary1,2008
State
Alabama

TaxRatesand SpecialRatesorNotes
Brackets
6.5%
Federaldeductibility

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%

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$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%

4.5%forbanks6%forsavingsandloans.

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
www.taxfoundation.org

StateCorporateIncomeTaxRates
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
Federaldeductibility

Minimumtaxis$50.

Minimumtaxis$800.10.84%onfinancialinstitutions.
ThetaxrateonSCorporationsis1.5%(3.5%for
financialSCorporations).
20%surchargefor2006. Payhigherofincometaxor
taxoncapital(3.5mills$1,000,000maximum).
IfpaidfederalAMT,mustpayFLhigherofCorp.Inc.
Taxor3.3%alternativeminimumrate.
4%capitalgainsrate

Minimumtaxis$20.
Includes2.5%incomereplacementtax.1.5%forS
Corps.
50%federaldeductibility

3.35%surtaxover$50,000

Kentucky

4.%>$0
5.0>50K
7.0>100K

CorporationspaythelargestoftheCorporateIncome
Tax,agrossreceiptstaxcomputedoneitherinstate
salesorgrossprofits,oraminimumtaxof$175.

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

1.90%

ModifiedVATappliestogrossreceipts,calledthe
SingleBusinessTax(SBT).Mustfileifgrossreceipts
over$350K.TheSBTwillberepealedasofDecember
31,2007.Michiganlawmakersarecurrentlydebating
planstoreplacetheSBT.

Minnesota

9.8%

5.8%alternativeminimumtaxrate.Aminimumtaxis
leviedbasedonMinnesotaproperty,payrollandsales.

Mississippi

3.0%>$0
4.0>5K
5.0>10K
6.25%

Franchisetaxof$2.50per$1,000withminimumtaxof
$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

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.

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
DistrictofColumbia 9.975%

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.

4.5%forbanks6%forsavingsandloans.
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
www.taxfoundation.org

StateCorporateIncomeTaxRates
AsofJanuary1,2006
(2006'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
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.
ThetaxrateonSCorporationsis1.5%(3.5%for
banks).

IfpaidfederalAMT,mustPayFLhigherofCorp.Inc.
Taxor3.3%alternativeminimumrate.
4%capitalgainsrate,7.92%onfinancialinstitutions.

Minimumtaxis$20.
Includes2.5%incomereplacementtax.1.5%forS
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%

5.8%alternativeminimumtaxrate.Aminimumtaxis
leviedbasedonMinnesotaproperty,payrollandsales.

Mississippi

3.0%>$0
4.0>5K
5.0>10K
6.25%

Franchisetaxof$2.50per$1,000withminimumtaxof
$25.

Maine

Missouri

Rateincludes14%surtax,asdoesthefollowing:an
additionaltaxof$2.60per$1,000ontaxabletangible
property(ornetworthallocabletostate,forintangible
propertycorporations)minimumtaxof$456.10.5%on
financialinstitutions10.91%onsavingsandloan
associations.

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

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.

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.
Imposesacapitalstockandfranchisetaxof0.724%on
taxableincomeover$150K.
Ninepercent(9%)ofnetincomeapportionedtoRhode
Islandoranannualfranchisetaxonitsauthorized
capitalstockattherateof$2.50foreach$10,000.00or
fractionalpartthereofminimumof$500,whichever
amountshallyieldthegreatesttax.

4.5%forbanks6%forsavingsandloans.
6%0.25%onabank'snetincome.Minimumtaxis
$200perlocation(banks).
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
DistrictofColumbia 9.975%

GrossreceiptstaxcalledBusiness&Operations(B&O)
Tax.
"Businessfranchisetax"of$0.70percentoftaxable
capital,oraminimumof$50.

Minimumtaxis$100.Includes5%surtax.Ballpark
grossreceiptstaxleviedongrossreceiptsover$5
millionatvaryingrates.

Note:BoldItalicsindicatenoteworthytaxchangesduring2005.
Sources:TaxFoundationEachstate'staxformsandinstructionsCommerceClearingHouse.

TaxFoundation
Ph:(202)4646200
www.taxfoundation.org

StateCorporateIncomeTaxRates
AsofJanuary1,2005
(205'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
6.97%
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
FederalDeductibility

Minimumtaxis$50.
Corporationswithnetincomesexceeding$100,000,
6.5%ofentirenetincome.

10.84%onfinancialinstitutions.Minimumtaxis$800.
ThetaxrateonSCorporationsis1.5%(3.5%for
banks).

3.3%alternativeminimumrate.Anexemptionof$5,000
isallowed
4%capitalgainsrate,7.92%onfinancialinstitutions.

Minimumtaxis$20.
Includes2.5%incomereplacementtax.
5%onfinancialinstitutions7.2%alternativeminimum
rate50%federaldeductibility.

3.35%surtaxover$50,000Banks2.25%plus2.125%
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%

5.8%alternativeminimumtaxrate.Aminimumtaxis
leviedbasedonMinnesotaproperty,payrollandsales.

Mississippi

3.0%>$0
4.0>5K
5.0>10K
6.25%

Franchisetaxof$2.50per$1,000withminimumtaxof
$25.

Louisiana

Maine

Missouri

Federaldeductibility.

27%offederalalternativeminimumtaxliability.

Rateincludes14%surtax,asdoesthefollowing:an
additionaltaxof$7.00per$1,000ontaxabletangible
property(ornetworthallocabletostate,forintangible
propertycorporations)minimumtaxof$456.10.5%on
financialinstitutions10.91%onsavingsandloan
associations.

7%onfinancialinstitutions50%offederaltax
deductible.

Montana

6.75%

Nebraska

5.58%>$0
7.81>50K
None

Nevada

7%forcorporationsfilingunderawater'sedgeelection.
Minimumtaxis$50.Minimumtaxforsmallbusiness
corporationsis$10.

NewHampshire

8.5%>$50K
9.25%>150K

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.

NewJersey

6.5%>$0
7.5%>$50K
9.0%>$100K

Theratereportedinthetableisthecorporation
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

TaxratesforsmallbusinesstaxpayersThetaxrate
onentirenetincome(ENI)forasmallbusiness
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.
Imposesacapitalstockandfranchisetaxof0.724%on
taxableincomeover$150K.
Ninepercent(9%)ofnetincomeapportionedtoRhode
Islandoranannualfranchisetaxonitsauthorized
capitalstockattherateof$2.50foreach$10,000.00or
fractionalpartthereofminimumof$250.00,whichever
amountshallyieldthegreatesttax.

4.5%forbanks6%forsavingsandloans.
6%0.25%onabank'snetincome.Minimumtaxis
$500perlocation(banks).

Minimumtaxis$100.
Minimumtaxis$250.

Virginia
Washington

9.2>25K
9.75>250K
6.00%
None

WestVirginia

9.00%

Wisconsin
7.90%
Wyoming
None
DistrictofColumbia 9.98%

Grossreceiptstax.The20differentratesrangefrom
0.011%5.029%dependingonthetypeofbusiness
activity.
"Businessfranchisetax"of$0.70per$100oftaxable
capital,oraminimumof$50.

Minimumtaxis$100.Includes5%surtax.

Note:BoldItalicsindicatenoteworthytaxchangesduring2004.
Sources:TaxFoundationEachstate'staxformsandinstructionsCommerceClearingHouse
FederationofTaxAdministrators.
TaxFoundation
Ph:(202)4646200
www.taxfoundation.org

StateCorporateIncomeTaxRates
AsofJanuary1,2004
(2004'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
6.97%
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

FederalDeductibility

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
4%capitalgainsrate,7.92%onfinancialinstitutions.

Minimumtaxis$20.
Includes2.5%incomereplacementtax.
5%onfinancialinstitutions7.2%alternativeminimum
rate50%federaldeductibility.

3.35%surtaxover$50,000Banks2.25%plus2.125%
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%

Federaldeductibility.

27%offederalalternativeminimumtaxliability.

Rateincludes14%surtax,asdoesthefollowing:an
additionaltaxof$7.00per$1,000ontaxabletangible
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.
5.8%alternativeminimumtaxrate.Aminimumtaxis
leviedbasedonMinnesotaproperty,payrollandsales.
Franchisetaxof$2.50per$1,000withminimumtaxof
$25.
7%onfinancialinstitutions50%offederaltaxdeductible.
7%forcorporationsfilingunderawater'sedgeelection.
Minimumtaxis$50.Minimumtaxforsmallbusiness
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

Theratereportedinthetableisthecorporation
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%
TaxratesforsmallbusinesstaxpayersThetaxrate
onentirenetincome(ENI)forasmallbusiness
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
Forfinancialinstitutions,0.015timesvalueofstock.
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%

Imposesacapitalstockandfranchisetaxof0.724%on
taxableincomeover$150K.

RhodeIsland

9.00%

Ninepercent(9%)ofnetincomeapportionedtoRhode
Islandoranannualfranchisetaxonitsauthorizedcapital
stockattherateof$2.50foreach$10,000.00orfractional
partthereofminimumof$250.00,whicheveramountshall
yieldthegreatesttax.

SouthCarolina
SouthDakota

5.00%
None

4.5%forbanks6%forsavingsandloans.
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.

Grossreceiptstax.The20differentratesrangefrom
0.011%5.029%dependingonthetypeofbusiness
activity.
"Businessfranchisetax"of$0.70per$100oftaxable
capital,oraminimumof$50.

Minimumtaxis$100.Includes5%surtax.

Note:BoldItalicsindicatenoteworthytaxchangesduring2001.
Sources:TaxFoundationEachstate'staxformsandinstructionsCommerceClearingHouse
FederationofTaxAdministrators.

TaxFoundation
Ph:(202)4646200
www.taxfoundation.org

StateCorporateIncomeTaxRates
AsofJanuary1,2003
(2003'snoteworthychangesinbolditalics)
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.

10.84%onfinancialinstitutions.6.65%alternative
minimumtaxrate(2%forfinancialinstitutions).Minimum

3.3%alternativeminimumrate.
4%capitalgainsrate,7.92%onfinancialinstitutions.

Minimumtaxis$20.
2.5%incomereplacementtax.
4.5%onsupplementalincome.Rateincreasesto8.5%
in2003.
5%onfinancialinstitutions7.2%alternativeminimum
rate50%federaldeductibility.

3.35%surtaxover$50,000Banks2.25%plus2.125%
surtaxover$25,000.

Kentucky

Louisiana

Maine

4.%>$0
5.0>25K
6.0>50K
7.0>100K
8.25>250K
4.0>$0
Federaldeductibility.
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.
5.8%alternativeminimumtaxrate.Aminimumtaxis
leviedbasedonMinnesotaproperty,payrollandsales.
Franchisetaxof$2.50per$1,000withminimumtaxof
$25.
7%onfinancialinstitution50%offederaltaxdeductible.
7%forcorporationsfilingunderawater'sedgeelection.
Minimumtaxis$50.Minimumtaxforsmallbusiness
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.

Forfinancialinstitutions,0.015timesvalueofstock.
Minimumtaxis$50.

Minimumtaxis$10.
Imposesa"CapitalStockandFranchiseTax."
Minimumtaxis$250.
4.5%forbanks6%forsavingsandloans.
6%0.25%onabank'snetincome.Minimumtaxis$200
perlocation(banks).

Minimumtaxis$100.
Minimumtaxis$250.

Grossreceiptstax.The20differentratesrangefrom
0.011%5.029%dependingonthetypeofbusiness

Districtof
Columbia

9.50%

Includes5%surtax.Minimumtaxis$100.

Note:BoldItalicsindicatenoteworthytaxchangesduring2001.
Sources:TaxFoundationEachstate'staxformsandinstructionsCommerceClearing
HouseFederationofTaxAdministrators.

TaxFoundation
Ph:(202)4646200
www.taxfoundation.org

StateCorporateIncomeTaxRates
AsofJanuary,2002
(2002'snoteworthychangesinbolditalics)

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.

10.84%onfinancialinstitutions.6.65%alternative
minimumtaxrate(2%forfinancialinstitutions).Minimum
taxis$800.

3.3%alternativeminimumrate.
4%capitalgainsrate,7.92%onfinancialinstitutions.

Minimumtaxis$20.
2.5%incomereplacementtax.
4.5%onsupplementalincome.
5%onfinancialinstitutions7.2%alternativeminimum
rate50%federaldeductibility.

3.35%surtaxover$50,000Banks2.25%plus2.125%
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

Federaldeductibility.

27%offederalalternativeminimumtaxliability.

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

5.8%alternativeminimumtaxrate.Aminimumtaxis
leviedbasedonMinnesotaproperty,payrollandsales.

Mississippi

Franchisetaxof$2.50per$1,000withminimumtaxof
$25.

Missouri

3%>$0
4%>$5K
5%>$10K
6.25%>$0

Montana

6.75%>$0

7%forcorporationsfilingunderawatersedgeelection.
Minimumtaxis$50.Minimumtaxforsmallbusiness
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.

Forfinancialinstitutions,0.015timesvalueofstock.
Minimumtaxis$50.

Oklahoma
6%>$0
Oregon
6.6%>$0
Pennsylvania 10%>$0

Minimumtaxis$10.
Imposesa"CapitalStockandFranchiseTax."

RhodeIsland 9%>$0
SouthCarolina 5%>$0

Minimumtaxis$250.
4.5%forbanks6%forsavingsandloans.

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.

Note:BoldItalicsindicatenoteworthytaxchangesduring2001.

Sources:TaxFoundationEachstate'staxformsandinstructionsCommerceClearing
HouseFederationofTaxAdministrators.

TaxFoundation
Ph:(202)4646200
www.taxfoundation.org

StateCorporateIncomeTaxRates
AsofJanuary1,2001
(2001'snoteworthychangesinbolditalics)

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)
Federaldeductibility.
$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
financialinstitutions.
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.Minimumtaxis$10.
n.a.Imposesa"CapitalStockand
FranchiseTax."
n.a.Minimumtaxis$250.
n.a.4.5%forbanks6%forsavings
andloans.
n.a.6%0.25%onabank'snetincome.
Minimumtaxis$200perlocation
(banks).
n.a.
n.a.
n.a.Minimumtaxis$100.
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
HouseFederationofTaxAdministrators.

TaxFoundation
Ph:(202)4646200

Fax:(202)4646201
www.taxfoundation.org

StateCorporateIncomeTaxRates
AsofDecember31,2000
(2000'snoteworthychangesinbolditalics)

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.

n.a.Minimumtaxis$20.

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
Federaldeductibility.
$90,000
n.a.Minimumtaxis$50.
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
financialinstitutions.

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.Minimumtaxis$10.
n.a.Imposesa"CapitalStockand
FranchiseTax."

RhodeIsland

n.a.

n.a.Minimumtaxis$250.

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.
n.a.Minimumtaxis$100.

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.

Note:BoldItalicsindicatenoteworthytaxchangesduring2001.
Sources:TaxFoundationEachstate'staxformsandinstructionsCommerceClearingHouse
FederationofTaxAdministrators.

TaxFoundation
Ph:(202)4646200

www.taxfoundation.org