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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 local
levels. We are a 501(c)(3) non-profit
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State Corporate Income
Tax Rates and Brackets
• Forty-four states levy a corporate income tax. Rates range from 3 percent in
North Carolina to 12 percent in Iowa.
• Six states -- Alaska, Connecticut, Iowa, Minnesota, New Jersey, and
Pennsylvania, and the District of Columbia -- levy top marginal corporate
income tax rates of 9 percent or higher.
• Seven states -- Arizona, North Carolina, North Dakota, Colorado, Mississippi,
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.
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Corporate income taxes are levied in 44 states. Though often thought of as a major tax type,
corporate income taxes account for just 5.4 percent of state tax collections and 2.7 percent of state
Iowa levies the highest top statutory corporate tax rate at 12 percent. Iowa is closely followed by
Pennsylvania (9.99 percent) and Minnesota (9.8 percent). Three other states (Alaska, Connecticut, and
New Jersey) and the District of Columbia levy rates of 9 percent or higher.
Conversely, North Carolina’s flat rate of 3 percent is the lowest rate in the country, followed by rates
in North Dakota (4.31 percent) and Colorado (4.63 perc