Corporate State Tax Rates
Yes, even the corporations owe Uncle Sam every year just like the rest of us. There’s enough critical debate to go around regarding the amount of taxes corporations are asked for, and that’s a very long story.
In the last year, the global average corporate tax rate has dropped from 35% to 26%. Why? Who knows.
The method of taxing corporations varies from country to country. Here in the States, taxable profits are calculated using a different set of rules than those used in calculating profits in the financial statements.
Shareholders who receive distributions or dividends from the company out of profits will be taxed on these things, even though they’ve already been taxed as being part of the profits. However, a partnership or sole proprietorship will only be taxed on the profits and not the distributions.
In the United States, the top marginal federal corporate rate for taxable income over $18.3 million is 35%. It can be as low as 15% for taxable income under $50,000.
Most states do tax companies, but the state tax is a deductible expense in calculating federal tax.
Here’s a look at the current rates for each state:
Alabama: 6.5%, Alaska:1%>$0, 2%>$10K, 3%>20K, 4%>30K, 5%>40K, 6%>50K, 7%>60K, 8%>70K, 9%>80K, 9.4%>90K, Arizona: 6.98%, Arkansas: 1%>$0, 2%>3K, 3%>6K, 5%>11K, 6%>25K, 6.5%>100%, California: 8.84%, Colorado: 4.63%, Connecticut: 7.5%, Delaware:8.7%, Florida: 5.5%, Georgia: 6%, Hawaii: 4.4%>$0, 5.4%>25K, Idaho: 7.6%, Illinois: 7.3%, Indiana: 8.5%, Iowa: 6%>$0, 8%>25K, 10%>100K, 12%>250K, Kansas: 4%>$0, 7.05>50K, Kentucky: 4.0%>$0, 5%>50K, 6%>100K, Louisiana:4%>$0, 5%>25K, 6%>50K, 7>100K, 8%>200K, Maine: 3.5%>$0, 7.93%>25K, 8.33%>75K, 8.93%>250K, Maryland:8.2%
Massachusetts: 9.5%, Michigan: 4.95%,Minnesota:9.8%, Mississippi: 3%>$0, 4%>5K, 5%>10K, Missouri: 6.2%, Montana:6.75%, Nebraska: 5.58%>$0, 7.81>100K, New Hampshire:8.5%, New Jersey: 6.5%>$0, 7.5%>50K, 9%>100K, New Mexico:4.8%-$0, 6.4%>500K, 7.6%>$1,000,000, New York: 7.1%, North Carolina: 6.9%, North Dakota:2.6%>$0, 4.1%>3K, 5.6%>8K, 6.4%>20K, 6.5%>30K, Ohio: .26%>$0, Oklahoma: 6%, Oregon: 6.6%, 7.9%>250K, Pennsylvania: 9.99%, Rhode Island: 9%, South Carolina: 5%, Tennessee:6.5%, Utah: 5%, Vermont: 6%>$0, 7>10K, 8.5%>25K, Virginia: 6%, West Virginia: 8.5%, Wisconsin: 7.9%, District of Columbia: 9.975%
For more information, visit a tax company like TurboTax Online and browse their award winning library of tax information for the specific data you’d like or consult real live tax experts and fellow taxpayers with any of your questions regarding corporate taxes.
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