Despite often being considered a significant source of tax revenue, corporate income taxes actually only accounted for 7 percent of state tax collections and approximately 3 percent of state general revenue in FY 2021.
In a total of 44 states, corporate income taxes are levied, with the highest rates ranging from a flat rate of 2.5 percent in North Carolina to a top marginal rate of 9.8 percent in Minnesota.
Have you ever wondered how your state compares to others regionally and nationally in terms of corporate income taxes?
Taking a deeper look, a number of states have implemented changes to their corporate income tax rates in recent years, with some states even reducing their rates this year, including:
- Arkansas
- Iowa
- Kansas
- Nebraska
- New Jersey
- Pennsylvania
Additionally, Utah's corporate income tax rate was retroactively reduced starting from January 1, 2023.
You can visit the Tax Foundation website to learn more about your state's corporate income tax situation.
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