style="font-family: Helvetica; text-align: right; color: windowtext; font-size: 10.0pt; font-weight: 400; font-style: normal; text-decoration: none; vertical-align: bottom; white-space: nowrap; border: medium none; padding-left: 1px; padding-right: 1px; padding-top: 1px">90,000 101.0 - 9.4  ARIZONA 6.968----Flat Rate---- 16.968  State Corporate Rates

November 02, 2003

2001 State Corporate Income Tax Rates

State

Tax RatesTax Brackets # of BracketsBank Tax Rates Federal Tax Deductible
          
ALABAMA6.5----Flat Rate---- 16.5 *
ALASKA1.0 - 9.410,000 ARKANSAS 1.0 - 6.53,000 100,000 61.0 - 6.5  
CALIFORNIA 8.84 (c)----Flat Rate---- 110.84 (c)  
COLORADO4.63----Flat Rate---- 14.63  
CONNECTICUT7.5 (d)----Flat Rate---- 17.5 (d)  
DELAWARE8.7----Flat Rate---- 18.7-1.7 (e)  
FLORIDA5.5 (f)----Flat Rate---- 15.5 (f)  
GEORGIA6.0----Flat Rate---- 16.0  
HAWAII 4.4 - 6.4 (g)25,000 100,000 37.92 (g)  
IDAHO 8.0 (h)----Flat Rate---- 18.0 (h)  
ILLINOIS7.3 (i)----Flat Rate---- 17.3 (i)  
INDIANA 7.9 (j)----Flat Rate---- 18.5  
IOWA6.0 - 12.025,000 250,000 45.0 * (k)
KANSAS 4.0 (l)----Flat Rate---- 12.25 (l)  
KENTUCKY4.0 - 8.2525,000 250,000 5--- (a)  
LOUISIANA4.0 - 8.025,000 200,000 5--- (a) *
MAINE 3.5 - 8.93 (m)25,000 250,000 41.0  
MARYLAND7.0----Flat Rate---- 17.0  
MASSACHUSETTS 9.5 (n)----Flat Rate---- 110.5 (n)  
MINNESOTA9.8 (o)----Flat Rate---- 19.8 (o)  
MISSISSIPPI3.0 - 5.05,000 10,000 33.0 - 5.0  
MISSOURI 6.25----Flat Rate---- 17.0 * (k)
MONTANA6.75 (p)----Flat Rate---- 16.75 (p)  
NEBRASKA5.58 - 7.81 50,000  2--- (a)  
NEW HAMPSHIRE8.0 (q)----Flat Rate---- 18.0 (q)  
NEW JERSEY9.0 (r)----Flat Rate---- 19 (r)  
NEW MEXICO4.8 - 7.6500,000 1 million 34.8 - 7.6  
NEW YORK 8.0 (s)----Flat Rate---- 18.0 (s)  
NORTH CAROLINA 6.9 (t)----Flat Rate---- 16.9 (t)  
NORTH DAKOTA3.0 - 10.53,000 50,000 67 (b) *
OHIO 5.1 - 8.5 (u) 50,000  2--- (u)  
OKLAHOMA6.0----Flat Rate---- 16.0  
OREGON 6.6 (b)----Flat Rate---- 16.6 (b)  
PENNSYLVANIA9.99----Flat Rate---- 1--- (a)  
RHODE ISLAND9.0 (b)----Flat Rate---- 19.0 (v)  
SOUTH CAROLINA 5.0----Flat Rate---- 14.5 (w)  
SOUTH DAKOTA---     6.0-1.0% (b)  
TENNESSEE6.0----Flat Rate---- 16.0  
UTAH 5.0 (b)----Flat Rate----  5.0 (b)  
VERMONT 7.0 - 9.75 (b)10,000 250,000 47.0 - 9.75 (b)  
VIRGINIA 6.0----Flat Rate---- 16.0 (x)  
WEST VIRGINIA9.0----Flat Rate---- 19.0  
WISCONSIN7.9----Flat Rate---- 17.9  
DIST. OF COLUMBIA9.975 (y)----Flat Rate----  9.975 (y)  

Source: Compiled by FTA from various sources
Note: Michigan imposes a single business tax (sometimes described as a business activities tax or value added tax) of 2.0% on the sum of federal taxable income of the business, compensation paid to employees, dividends, interest, royalties paid and other items. Similarly, Texas imposes a franchise tax of 4.5% of earned surplus. Nevada, Washington, and Wyoming do not have state corporate income taxes.
(a) Rates listed include the corporate tax rate applied to financial institutions or excise taxes based on income. Some states have other taxes based upon the value of deposits or shares.
(b) Minimum tax is $50 in Arizona, $50 in North Dakota (banks), $10 in Oregon, $250 in Rhode Island, $500 per location in South Dakota (banks), $100 in Utah, $250 in Vermont.
(c) Minimum tax is $800. The tax rate on S-Corporations is 1.5% (3.5% for banks).
(d) Or 3.1 mills per dollar of capital stock and surplus (maximum tax $1 million) or $250.
(e) The marginal rate decreases over 4 brackets ranging from $20 to $650 million in taxable income. Building and loan associations are taxed at a flat 8.7%.
(f) Or 3.3% Alternative Minimum Tax. An exemption of $5,000 is allowed.
(g) Capital gains are taxed at 4%. There is also an alternative tax of 0.5% of gross annual sales.
(h) Minimum tax is $20. An additional tax of $10 is imposed on each return.
(i) Includes a 2.5% personal property replacement tax.
(j) Consists of 3.4% on income from sources within the state plus a 4.5% supplemental income tax.
(k) Fifty percent of the federal income tax is deductible.
(l) Plus a surtax of 3.35% (2.125% for banks) taxable income in excess of $50,000 ($25,000).
(m) Or a 27% tax on Federal Alternative Minimum Taxable Income.
(n) Rate includes a 14% surtax, as does the following: an additional tax of $7.00 per $1,000 on taxable tangible property (or net worth allocable to state, for intangible property corporations); minimum tax of $456.
(o) Plus a 5.8% tax on any Alternative Minimum Taxable Income over the base tax.
(p) A 7% tax on taxpayers using water's edge combination. Minimum tax is $50.
(q) Plus a 0.50 percent tax on the enterprise base (total compensation, interest and dividends paid). Business profits tax imposed on both corporations and unincorporated associations.
(r) The rate reported in the table is the business franchise tax rate. The minimum tax is $200. Corporations not subject to the franchise tax are subject to a 7.25% income tax. Banks other than savings institutions are subject to the franchise tax. S-Corporation are subject to an entity level tax of 2.0%. Corporations with net income under $100,000 are taxed at 7.5%. For S-Corporation having $100,000 or less in net income for a 12-month privilege period, the rates are 1.13% and 0.5%, respectively. Regulated investment companies are subject to a flat tax of $250.
(s) Or 1.78 (0.1 for banks) mills per dollar of capital (up to $350,000; or 3.0% of the minimum taxable income; or a minimum of $1,500 to $100 depending on payroll size ($250 plus 2.5% surtax for banks); if any of these is greater than the tax computed on net income. An addition tax of 0.9 mills per dollar of subsidiary capital is imposed on corporations. Small corporations with income under $200,000 pay a 7.5% tax on all income.
(t) Financial institutions are also subject to a tax equal to $30 per one million in assets.
(u) Or 4.0 mills time the value of the taxpayer's issued and outstanding share of stock with a maximum payment of $150,000. An additional litter tax is imposed equal to 0.11% on the first $50,000 of taxable income, 0.22% on income over $50,000; or 0.14 mills on net worth.
(v) For banks, the alternative tax is $2.50 per $10,000 of capital stock ($100 minimum).
(w) Savings and Loans are taxed at a 6% rate.
(x) State and national banks subject to the state's franchise tax on net capital is exempt from the income tax.
(y) Minimum tax is $100. Includes surtax.