The Tax Foundation recently released their 2020 national rankings for state corporate income tax rates and brackets. Fortunately for Sunshine State businesses, Florida has one of the lowest rates in the country.
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 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.
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.
Source: Tax Foundation