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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 global
levels. We are a 501(c)(3) nonprofit
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State Corporate Income Tax Rates
and Brackets for 2021
• Forty-four states levy a corporate income tax. Rates range from 2.5 percent
in North Carolina to 11.5 percent in New Jersey.
• Six states—Alaska, Illinois, Iowa, Minnesota, New Jersey, and Pennsylvania—
levy top marginal corporate income tax rates of 9 percent or higher.
• Ten states—Arizona, Colorado, Florida, Kentucky, Mississippi, Missouri, North
Carolina, North Dakota, South Carolina, and Utah—have top rates at or below
• 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 levy neither a corporate
income nor gross receipts tax.
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Corporate income taxes are levied in 44 states. Though often thought of as a major tax type,
corporate income taxes accounted for an average of just 4.66 percent of state tax collections and
2.27 percent of state general revenue in fiscal year 2018.1
New Jersey levies the highest top statutory corporate tax rate at 11.5 percent, followed by
Pennsylvania (9.99 percent) and Iowa and Minnesota (both at 9.8 percent). Two other states (Alaska
and Illinois) impose rates greater than 9 percent.
Conversely, North Carolina’s flat rate of 2.5 percent is the lowest in the country, followed by rates
in Missouri (4 percent) and North Dakota (4.31 percent)