Among the District of Columbia and the 44 states that levy corporate income taxes, Arizona ranked No. 42 for the top tax rate on business revenues, according to a Tax Foundation analysis of 2018 tax numbers.
Arizona has a single tax bracket on corporate income, with a top rate of 4.9 percent, the study by policy analyst Morgan Scarboro said.
Top corporate income tax rates nationwide range from 12 percent to 3 percent, the analysis concluded.
For 2018, Connecticut brought down its top marginal corporate income tax rate from 9 percent to 8.25 percent, and the District of Columbia dropped its rate to 8.25 percent. Indiana’s rate dipped from 6 percent to 5.75 percent in July.
Nevada, Ohio, Texas and Washington levy business taxes on gross receipts in lieu of a corporate income tax. Only South Dakota and Wyoming have neither a corporate income tax nor a gross receipts tax.
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Which states have the highest corporate tax rates?
Rank | State | Brackets | Rates per Bracket | Top Rates |
1 | Iowa | $0
$25,000 $100,000 $250,000 | 6.00%
8.00% 10.00% 12.00% | 12.00% |
2 | Pennsylvania | $0 | 9.99% | 9.99% |
3 | Minnesota | $0 | 9.80% | 9.80% |
4 | Illinois | $0 | 9.50% | 9.50% |
5 | Alaska | $0
$25,000 $49,000 $74,000 $99,000 $124,000 $148,000 $173,000 $198,000 $222,000 | 0.00%
2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 9.40% | 9.40% |
6 | New Jersey | $100,000 | 9.00% | 9.00% |
7 | Maine | $0
$25,000 $75,000 $250,000 | 3.50%
7.93% 8.33% 8.93% | 8.93% |
8 | California | $0 | 8.84% | 8.84% |
9 | Delaware | $0 | 8.70% | 8.70% |
10 | Vermont | $0
$10,000 $25,000 | 6.00%
7.00% 8.50% | 8.50% |
11 | Connecticut | $0 | 8.25% | 8.25% |
12 | District of Columbia | $0 | 8.25% | 8.25% |
13 | Maryland | $0 | 8.25% | 8.25% |
14 | New Hampshire | $0 | 8.20% | 8.20% |
15 | Louisiana | $0
$25,000 $50,000 $100,000 $200,000 | 4.00%
5.00% 6.00% 7.00% 8.00% | 8.00% |
16 | Massachusetts | $0 | 8.00% | 8.00% |
17 | Wisconsin | $0 | 7.90% | 7.90% |
18 | Nebraska | $0
$100,000 | 5.58%
7.81% | 7.81% |
19 | Oregon | $0
$1,000,000 | 6.60%
7.60% | 7.60% |
20 | Idaho | $0 | 7.40% | 7.40% |
21 | Kansas | $0
$50,000 | 4.00%
7.00% | 7.00% |
22 | Rhode Island | $0 | 7.00% | 7.00% |
23 | Montana | $0 | 6.75% | 6.75% |
24 | Alabama | $0 | 6.50% | 6.50% |
25 | Arkansas | $0
$3,000 $6,000 $11,000 $25,000 $100,000 | 1.00%
2.00% 3.00% 5.00% 6.00% 6.50% | 6.50% |
26 | New York | $0 | 6.50% | 6.50% |
27 | Tennessee | $0 | 6.50% | 6.50% |
28 | West Virginia | $0 | 6.50% | 6.50% |
29 | Hawaii | $0
$25,000 $100,000 | 4.40%
5.40% 6.40% | 6.40% |
30 | Missouri | $0 | 6.25% | 6.25% |
31 | Georgia | $0 | 6.00% | 6.00% |
32 | Indiana | $0 | 5.75% | 5.75% |
33 | Kentucky | $0
$50,000 $100,000 | 4.00%
5.00% 6.00% | 6.00% |
34 | Michigan | $0 | 6.00% | 6.00% |
35 | Oklahoma | $0 | 6.00% | 6.00% |
36 | Virginia | $0 | 6.00% | 6.00% |
37 | New Mexico | $0
$500,000 | 4.80%
5.90% | 5.90% |
38 | Florida | $0 | 5.50% | 5.50% |
39 | Mississippi | $0
$1,000 $5,000 $10,000 | 0.00%
3.00% 4.00% 5.00% | 5.00% |
40 | South Carolina | $0 | 5.00% | 5.00% |
41 | Utah | $0 | 5.00% | 5.00% |
42 | Arizona | $0 | 4.90% | 4.90% |
43 | Colorado | $0 | 4.63% | 4.63% |
44 | North Dakota | $0
$25,000 $50,000 | 1.41%
3.55% 4.31% | 4.31% |
45 | North Carolina | $0 | 3.00% | 3.00% |