The Tax Foundation is the nation’s leading independent tax policy research organization. Since 1937, our principled research, insightful analysis, and engaged experts have informed smarter tax policy at the federal, state, and local levels.
The Tax Foundation is the nation’s
leading independent tax policy
research organization. Since 1937,
our research, analysis, and experts
have informed smarter tax policy
at the federal, state, and local
levels. We are a 501(c)(3) nonprofit
©2019 Tax Foundation
Creative Commons CC-BY-NC 4.0
Editor, Rachel Shuster
Designer, Dan Carvajal
1325 G Street, NW, Suite 950
Washington, DC 20005
State Corporate Income Tax Rates
and Brackets for 2019
• Forty-four states levy a corporate income tax. Rates range from 2.5 percent
in North Carolina to 12 percent in Iowa.
• Six states—Alaska, Illinois, Iowa, Minnesota, New Jersey, and Pennsylvania—
levy top marginal corporate income tax rates of 9 percent or higher.
• Eight states—Arizona, Colorado, Kentucky, Mississippi, North Carolina, North
Dakota, South Carolina, and Utah—have top rates at or below 5 percent.
• Nevada, Ohio, Texas, and Washington impose gross receipts taxes instead
of corporate income taxes. Gross receipts taxes are generally thought to be
more economically harmful than corporate income taxes.
• South Dakota and Wyoming are the only states that do not levy a corporate
income or gross receipts tax.
TAX FOUNDATION | 2
Corporate income taxes are levied in 44 states. Though often thought of as a major tax type,
corporate income taxes account for an average of just 3.38 percent of state tax collections and 2.24
percent of state general revenue.1
Iowa levies the highest top statutory corporate tax rate at 12 percent,2 followed by New Jersey (11.5
percent), Pennsylvania (9.99 percent), and Minnesota (9.8 percent). Two other states (Alaska and
Illinois) levy rates of 9 percent or higher.
Conversely, North Carolina’s flat rate of 2.5 percent is the lowest in the country, followed by rates in
North Dakota (4.31 percent) and Colorado (4.63 percent). Four other states impose rates at or below