Tax season is upon us, but there are more taxes to consider than just personal income taxes. Most states also collect corporate income taxes, although this source accounts for just an average 3.38 percent of state tax collections and 2.24 percent of state general revenues.
The following table (from the Tax Foundation) shows the top-marginal corporate income tax rate for all 50 states and the District of Columbia as of January 1, 2019. The data are presented in both alphabetical order and ranked from the greatest to the least. Six states have no corporate income taxes: Nevada, Ohio, South Dakota, Texas, Wyoming and Washington.
To read the entire study from the Tax Foundation on Corporate Income Tax Rates click https://taxfoundation.org/state-corporate-rates-brackets-2019/?utm_source=Tax+Foundation+Newsletters&utm_campaign=043e188fbf-EMAIL_CAMPAIGN_2019_02_06_03_53_COPY_04&utm_medium=email&utm_term=0_8387957ec9-043e188fbf-427662773&mc_cid=043e188fbf&mc_eid=c79ab314e3
Just because a state has no corporate income tax does not mean that corporations are tax free at the state level. Among the six states with no corporate income taxes — Nevada, Ohio, Texas and Washington — impose a gross receipts tax. This tax is considered to be less desirable than a corporate income tax. Corporate income taxes are only paid when a firm makes money whereas a gross receipts tax is collected whether a profit is made or not. Only two states, South Dakota and Wyoming, do not impose either a corporate income tax or gross receipts tax.