FEDERATION OF TAX ADMINISTRATORS -- FEBRUARY 2011

TAX RATE (a) FEDERAL

TAX RATE TAX BRACKETS NUMBER (percent) INCOME TAX

STATE (percent) LOWEST HIGHEST OF BRACKETS FINANCIAL INST. DEDUCTIBLE

ALABAMA 6.5 ----Flat Rate---- 1 6.5 Yes

ALASKA 1.0 - 9.4 9,999 90,000 10 1.0 - 9.4

ARIZONA 6.968 (b) ----Flat Rate---- 1 6.968 (b)

ARKANSAS 1.0 - 6.5 3,000 100,001 6 1.0 - 6.5

CALIFORNIA 8.84 (c) ----Flat Rate---- 1 10.84 (c)

COLORADO 4.63 ----Flat Rate---- 1 4.63

CONNECTICUT 7.5 (d) ----Flat Rate---- 1 7.5 (d)

DELAWARE 8.7 ----Flat Rate---- 1 8.7-1.7 (e)

FLORIDA 5.5 (f) ----Flat Rate---- 1 5.5 (f)

GEORGIA 6.0 ----Flat Rate---- 1 6.0

HAWAII 4.4 - 6.4 (g) 25,000 100,001 3 7.92 (g)

IDAHO 7.6 (h) ----Flat Rate---- 1 7.6 (h)

ILLINOIS 9.5 (i) ----Flat Rate---- 1 9.5 (i)

INDIANA 8.5 ----Flat Rate---- 1 8.5

IOWA 6.0 - 12.0 25,000 250,001 4 5.0 Yes (j)

KANSAS 4.0 (k) ----Flat Rate---- 1 2.25 (k)

KENTUCKY 4.0 - 6.0 50,000 100,001 3 --- (a)

LOUISIANA 4.0 - 8.0 25,000 200,001 5 4.0 - 8.0 Yes

MAINE 3.5 - 8.93 25,000 250,000 4 1.0 (l)

MARYLAND 8.25 ----Flat Rate---- 1 8.25

MASSACHUSETTS 8.25 (m) ----Flat Rate---- 1 9.5 (m)

MICHIGAN 4.95 (n) ----Flat Rate---- 1 --- (a)

MINNESOTA 9.8 (o) ----Flat Rate---- 1 9.8 (o)

MISSISSIPPI 3.0 - 5.0 5,000 10,001 3 3.0 - 5.0

MISSOURI 6.25 ----Flat Rate---- 1 7.0 Yes (j)

MONTANA 6.75 (p) ----Flat Rate---- 1 6.75 (p)

NEBRASKA 5.58 - 7.81 100,000 2 --- (a)

NEVADA No corporate income tax

NEW HAMPSHIRE 8.5 (q) ----Flat Rate---- 1 8.5 (q)

NEW JERSEY 9.0 (r) ----Flat Rate---- 1 9.0 (r)

NEW MEXICO 4.8 - 7.6 500,000 1 million 3 4.8 - 7.6

NEW YORK 7.1 (s) ----Flat Rate---- 1 7.1 (s)

NORTH CAROLINA 6.9 ----Flat Rate---- 1 6.9 (t)

NORTH DAKOTA 2.1-6.4 25,000 50,001 3 7 (b) Yes

OHIO (u) --- (u)

OKLAHOMA 6.0 ----Flat Rate---- 1 6.0

OREGON 6.6 - 7.6 (v) 250,001 2 6.6 - 7.6 (v)

PENNSYLVANIA 9.99 ----Flat Rate---- 1 --- (a)

RHODE ISLAND 9.0 (w) ----Flat Rate---- 1 9.0 (w)

SOUTH CAROLINA 5.0 ----Flat Rate---- 1 4.5 (x)

SOUTH DAKOTA No corporate income tax 6.0-0.25% (b)

TENNESSEE 6.5 ----Flat Rate---- 1 6.5

TEXAS (y) (y)

UTAH 5.0 (b) ----Flat Rate---- 5.0 (b)

VERMONT 6.0 - 8.5 (b) 10,000 250,000 3 --- (a)

VIRGINIA 6.0 ----Flat Rate---- 1 6.0

WASHINGTON No corporate income tax

WEST VIRGINIA 8.5 (z) ----Flat Rate---- 1 8.5 (z)

WISCONSIN 7.9 ----Flat Rate---- 1 7.9

WYOMING No corporate income tax

DIST. OF COLUMBIA 9.975 (b) ----Flat Rate---- 1 9.975 (b)

Source: Compiled by FTA from state sources.

Footnotes on next page.

RANGE OF STATE CORPORATE INCOME TAX RATES

(For tax year 2011 -- as of January 1, 2011)
FEDERATION OF TAX ADMINISTRATORS – FEBRUARY 2011

RANGE OF STATE CORPORATE INCOME TAX RATES (footnotes)

Source: Compiled by FTA from various sources

(a) Rates listed are the corporate income 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, $100 in District of Columbia, $50 in North Dakota (banks), $500 in Rhode 

Island, $200 per location in South Dakota (banks), $100 in Utah, $250 in Vermont. 

(c) The minimum corporation franchise tax in California is $800. The additional alternative minimum tax is levied

at a 6.65% rate.

(d) Connecticut’s tax is the greater of the 7.5% tax on net income, a 0.31% tax on capital stock and surplus 

(maximum tax of $1 million), or $250 (the minimum tax). 

(e) The Delaware Bank 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) An exemption of $5,000 is allowed. Florida’s Alternative Minimum Tax rate is 3.3%. 

(g) Hawaii taxes capital gains at 4%. Financial institutions pay a franchise tax of 7.92% of taxable income (in lieu 

of the corporate income tax and general excise taxes).

(h) Idaho’s minimum tax on a corporation is $20. The $10 Permanent Building Fund Tax must be paid by each 

corporation in a unitary group filing a combined return. Taxpayers with gross sales in Idaho under $100,000, and 

with no property or payroll in Idaho, may elect to pay 1% on such sales (instead of the tax on net income).

(i) The Illinois rate of 9.5% is the sum of a corporate income tax rate of 7.0% plus a replacement tax of 2.5%. Tax 

rate increased from 7.3% on 1/1/11. 

(j) 50% of the federal income tax is deductible.

(k) In addition to the flat 4% corporate income tax, Kansas levies a 3.0% surtax on taxable income over $50,000.

Banks pay a privilege tax of 2.25% of net income, plus a surtax of 2.125% (2.25% for savings and loans, trust 

companies, and federally chartered savings banks) on net income in excess of $25,000.

(l) The state franchise tax on financial institutions is either (1) the sum of 1% of the Maine net income of the 

financial institution for the taxable year, plus 8¢ per $1,000 of the institution's Maine assets as of the end of its 

taxable year, or (2) 39¢ per $1,000 of the institution's Maine assets as of the end of its taxable year.

(m) In 2012, the Massachusetts tax rate on business and manufacturing corporations is scheduled to fall to 8.0% 

and the rate on financial institutions to 9.0%. Business and manufacturing corporations pay an additional tax of 

$2.60 per $1,000 on either taxable Massachusetts tangible property or taxable net worth allocable to the state (for 

intangible property corporations). The minimum tax for both corporations and financial institutions is $456.

(n) The Michigan Business Tax is levied at rate of 4.95% on income plus 0.8% on modified gross receipts; there is

a 21.99% surcharge, capped at $6 million per year. The tax applies to businesses with gross receipts of $350,000 

or more. 

(o) In addition, Minnesota levies a 5.8% tentative minimum tax on Alternative Minimum Taxable Income. 

(p) Montana levies a 7% tax on taxpayers using water's edge combination. The minimum tax per corporation is 

$50; the $50 minimum applies to each corporation included on a combined tax return. Taxpayers with gross sales 

in Montana of $100,000 or less may pay an alternative tax of 0.5% on such sales, instead of the net income tax.

(q) New Hampshire’s 8.5% Business Profits Tax is imposed on both corporations and unincorporated associations 

with gross income over $50,000. In addition, New Hampshire levies a Business Enterprise Tax of 0.75% on the 

enterprise base (total compensation, interest and dividends paid) for businesses with gross income over $150,000 

or base over $75,000.

(r) In New Jersey small businesses with annual entire net income under $100,000 pay a tax rate of 7.5%; 

businesses with income under $50,000 pay 6.5%. The minimum Corporation Business Tax is based on New Jersey 

gross receipts. It ranges from $500 for a corporation with gross receipts less than $100,000, to $2,000 for a 

corporation with gross receipts of $1 million or more. 

(s) New York’s General business corporate rate shown. Corporations may also be subject to AMT tax at 1.5% (3% 

banks), or a capital stocks tax. A minimum tax ranges from $25 to $5,000, depending on receipts ($250 minimum 

for banks). Certain qualified New York manufacturers pay 6.5%. Small business taxpayers in New York pay rates 

of 6.5%, 7.1%, and 4.35% on 3 brackets of entire net income up to $390,000.

(t) In North Carolina financial institutions are also subject to a tax equal to $30 per one million in assets. 

(u) Ohio no longer levies a tax based on income (except for a particular subset of corporations), but instead 

imposes a Commercial Activity Tax (CAT) equal to $150 for gross receipts sitused to Ohio of between $150,000 and 

$1 million, plus 0.26% of gross receipts over $1 million. Banks continue to pay a franchise tax of 1.3% of net 

worth. For those few corporations for whom the franchise tax on net worth or net income still applies, a litter tax 

also applies.

(v) Oregon’s minimum tax for C corporations depends on the Oregon sales of the filing group. The minimum tax 

ranges from $150 for corporations with sales under $500,000, up to $100,000 for companies with sales of $100 

million or above.

(w) Rhode Island’s tax is the greater of 9% of net income or an alternative annual franchise tax at the rate of

$2.50 per $10,000 of authorized capital stock (valued at a minimum of $100/share) with a minimum tax of $500.

(x) South Carolina taxes savings and loans at a 6% rate.

(y) Texas imposes a Franchise Tax, otherwise known as margin tax, imposed on entities with more than 

$1,000,000 total revenues at rate of 1%, or 0.5% for entities primarily engaged in retail or wholesale trade, on 

lesser of 70% of total revenues or 100% of gross receipts after deductions for either compensation or cost of goods 

sold.

(z) West Virginia’s corporate rate is scheduled for reduction as follows: 7.75% after 2011, 7.0% after 2012, 6.5% 

after 2013.