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Which state has the highest corporate tax rate? Explore the latest corporate income tax rates by state with our 2024 corporate tax rates map.
In addition to the federal corporate income tax, which applies to all corporations nationwide, all but six states charge an additional state corporate income tax on top of federal taxes. The corporate income tax only applies to a certain type of business called a C-Corporation.
As of January 1, 2024, the top marginal corporate income tax rate experienced a significant reduction from 7.25 to 5.84 percent, reaching that target top marginal rate three years earlier than initially planned.
This year, thirty-four states made changes to their tax codes, effective January 1. As detailed here, six states—Arkansas, Iowa, Kansas, Nebraska, New Jersey, and Pennsylvania—have reduced their corporate income tax rates.
Corporate tax rates vary from state to state. Some states use a flat rate, some use a bracket system, and some don’t have any corporate tax requirements. Here’s what you need to know about corporate tax rates by state and how Mosey can help you remain compliant.
Under current law, corporations in the United States pay federal corporate income taxes levied at a 21 percent rate plus state-level corporate taxes that range from zero to 9.8 percent, resulting in a combined average top tax rate of 25.6 percent in 2024.
Iowa has the highest top statutory corporate tax rate at 12 percent, followed by New Jersey (11.5 percent), Pennsylvania (9.99 percent), and Minnesota (9.8 percent). Meanwhile, eight states have a top rate of 5% or below:
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 general revenue. Here’s how corporate income taxes compare across the states.
January 29, 2024. Corporate income tax rate schedule. Statistics Type Corporate. Primary topic Business Taxes. Topics Corporate income tax. Subscribe to our newsletters today.
Top state corporate income tax rates and brackets as of January 1, 2024. (a) Connecticut charges a 10% surtax on a business’s tax liability if it has gross proceeds of $100 million or more, or if it files as part of a combined unitary group.