Iowa posted highest corporate income tax in 2018


Among the District of Columbia and the 44 states that levy corporate income taxes, Iowa ranked No. 1 for the top tax rate on business revenues, according to a Tax Foundation analysis of 2018 tax numbers.

Iowa has four tax brackets on corporate income, with a top rate of  12 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?

RankState Brackets Rates per Bracket Top Rates
1Iowa$0

$25,000

$100,000

$250,000

6.00%

8.00%

10.00%

12.00%

12.00%
2Pennsylvania$09.99%9.99%
3Minnesota$09.80%9.80%
4Illinois$09.50%9.50%
5Alaska$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%
6New Jersey$100,0009.00%9.00%
7Maine$0

$25,000

$75,000

$250,000

3.50%

7.93%

8.33%

8.93%

8.93%
8California$08.84%8.84%
9Delaware$08.70%8.70%
10Vermont$0

$10,000

$25,000

6.00%

7.00%

8.50%

8.50%
11Connecticut$08.25%8.25%
12District of Columbia$08.25%8.25%
13Maryland$08.25%8.25%
14New Hampshire$08.20%8.20%
15Louisiana$0

$25,000

$50,000

$100,000

$200,000

4.00%

5.00%

6.00%

7.00%

8.00%

8.00%
16Massachusetts$08.00%8.00%
17Wisconsin$07.90%7.90%
18Nebraska$0

$100,000

5.58%

7.81%

7.81%
19Oregon$0

$1,000,000

6.60%

7.60%

7.60%
20Idaho$07.40%7.40%
21Kansas$0

$50,000

4.00%

7.00%

7.00%
22Rhode Island$07.00%7.00%
23Montana$06.75%6.75%
24Alabama$06.50%6.50%
25Arkansas$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%
26New York$06.50%6.50%
27Tennessee$06.50%6.50%
28West Virginia$06.50%6.50%
29Hawaii$0

$25,000

$100,000

4.40%

5.40%

6.40%

6.40%
30Missouri$06.25%6.25%
31Georgia$06.00%6.00%
32Indiana$05.75%5.75%
33Kentucky$0

$50,000

$100,000

4.00%

5.00%

6.00%

6.00%
34Michigan$06.00%6.00%
35Oklahoma$06.00%6.00%
36Virginia$06.00%6.00%
37New Mexico$0

$500,000

4.80%

5.90%

5.90%
38Florida$05.50%5.50%
39Mississippi$0

$1,000

$5,000

$10,000

0.00%

3.00%

4.00%

5.00%

5.00%
40South Carolina$05.00%5.00%
41Utah$05.00%5.00%
42Arizona$04.90%4.90%
43Colorado$04.63%4.63%
44North Dakota$0

$25,000

$50,000

1.41%

3.55%

4.31%

4.31%
45North Carolina$03.00%3.00%
Source: Tax Foundation; state tax statutes, forms, and instructions; Bloomberg BNA

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