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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 2020
• 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.
• 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 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 an average of just 4.73 percent of state tax collections and 2.27
percent of state general revenue.1
Iowa levies the highest top statutory corporate tax rate at 12 percent,2 followed by New Jersey (10.5
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 Missouri (4 percent) and North Dakota (4.31 percent). Seven other states impose to