The U.S. does not have a fixed rate of corporate income tax that covers all states. In fact, almost every U.S. state has a different rate of corporate income tax.

Not all states have one specific fixed rate, they have a progressive rate based on the amount of income (net profit) your business generates at the end of each financial year. The lowest corporate tax rates for 2021 noted below are ones that are fixed regardless of the income your business earns.

Lowest Corporate Tax Rates by State for 2021

Lowest corporate income tax rates by state

1. North Carolina: 2.5%

2. Missouri: 4%

3. North Dakota: 4.31%

4. Florida: 4.458%

5. Colorado: 4.55%




It is important to note that there are six states that have 0% corporate income tax. However, this does not necessarily mean your business will not be subject to taxation in some form or another. The states with no corporate income tax are Nevada, Ohio, South Dakota, Texas, Washington, and Wyoming.

Take me straight to the list of corporate tax rates and the graphic!
If you want to jump straight to our table that lists the corporate income tax rates for all 50 states – CLICK HERE
If you want to jump straight to a downloadable graphic that shows the corporate income tax rates for all 50 states – CLICK HERE

Some states with a 0% corporate income tax rate charge a gross receipts tax which is not strictly comparable to corporate income tax rates and is based on the total revenue your business generates without subtracting your expenses. So, instead of paying tax on your net profit, you will pay gross receipts tax on your revenue.

Here is an example – If your business collects $500,000 in revenue in 2021, a state may impose a .375% tax rate on it. You must pay $1,875 to the state. Some states, such as Texas, call this a franchise tax.

What State Has the Highest Corporate Income Tax Rate

What State Has the Highest Income Tax Rate

1. New Jersey: 11.5%

2. Pennsylvania: 9.99%

3. Iowa: 9.8%

4. Minnesota: 9.8%

5. Alaska: 9.4%

Corporate Tax Rates by State for 2021

Here are the corporate income tax rates by state that show those with a fixed rate, a progressive rate based on how much profit you make, and those that do not charge corporate income tax (0%). Alabama has a fixed rate of 6.5%, so any profit you make you will pay 6.5% corporate income tax on this amount.

Another example on our tax rates table is Alaska where the rate of corporate income tax is progressive and changes based on how much profit your business makes. So, for example, if your profit is more than $25,000 but less than $49,000, you will pay 2% in corporate income tax. If your business makes over $99,000 but less than $124,000, you will pay 5% in corporate income tax.

StateRatesTax Brackets (More Than)
Alabama Corporate Income Tax Rate6.5%$0
Alaska Corporate Income Tax Rates0%$0
2%$25,000
3%$49,000
4%$74,000
5%$99,000
6%$124,000
7%$148,000
8%$173,000
9%$198,000
9.4%$222,000
Arizona Corporate Income Tax Rate4.9%$0
Arkansas Corporate Income Tax Rates1.0%$0
2.0%$3,000
3.0%$6,000
5.0%$11,000
6.0%$25,000
6.2%$100,000
California Corporate Income Tax Rate8.84%$0
Colorado Corporate Income Tax Rate4.55%$0
Connecticut Corporate Income Tax Rate7.50%$0
Delaware Corporate Income Tax Rate8.7%$0
District of Columbia (D.C.) Income Tax Rate8.25%$0
Florida Corporate Income Tax Rate4.458%$0
Georgia Corporate Income Tax Rate5.75%$0
Hawaii Corporate Income Tax Rates4.4%$0
5.4%$25,000
6.4%$100,000
Idaho Corporate Income Tax Rate6.925%$0
Illinois Corporate Income Tax Rate9.50%$0
Indiana Corporate Income Tax Rate5.25%$0
Iowa Corporate Income Tax Rates5.5%$0
9.0%$100,000
9.8%$250,000
Kansas Corporate Income Tax Rates4%$0
7%$50,000
Kentucky Corporate Income Tax Rate5%$0
Louisiana Corporate Income Tax Rates4%$0
5%$25,000
6%$50,000
7%$100,000
8%$200,000
Maine Corporate Income Tax Rates3.50%$0
7.93%$350,000
8.33%$1,050,000
8.93%$3,500,000
Maryland Corporate Income Tax Rate8.25%$0
Massachusetts Corporate Income Tax Rate8.00%$0
Michigan Corporate Income Tax Rate6.00%$0
Minnesota Corporate Income Tax Rate9.8%$0
Mississippi Corporate Income Tax Rates3%$4,000
4%$5,000
5%$10,000
Montana Corporate Income Tax Rate6.75%$0
Nebraska Corporate Income Tax Rates5.58%$0
7.81%$100,000
Nevada Corporate Income Tax Rate0%
New Hampshire Corporate Income Tax Rate7.7%$0
New Jersey Corporate Income Tax Rates6.5%$0
7.5%$50,000
9.0%$100,000
11.5%$1,000,000
New Mexico Corporate Income Tax Rates4.8%$0
5.9%$500,000
New York Corporate Income Tax Rate6.5%$0
North Carolina Corporate Income Tax Rate2.5%$0
North Dakota Income Tax Rates1.41%$0
3.55%$25,000
4.31%$50,000
Ohio Corporate Income Tax Rate0%
Oklahoma Corporate Income Tax Rate6%$0
Oregon Corporate Income Tax Rates6.6%$0
7.6%$1,000,000
Pennsylvania Corporate Income Tax Rate9.99%$0
Rhode Island Corporate Income Tax Rate7%$0
South Carolina Corporate Income Tax Rate5%$0
South Dakota Corporate Income Tax Rate0%
Tennessee Corporate Income Tax Rate6.5%$0
Texas Corporate Income Tax Rate0%
Utah Corporate Income Tax Rate4.95%$0
Vermont Corporate Income Tax Rates6%$0
7%$10,000
8.5%$25,000
Virginia Corporate Income Tax Rate6%$0
Washington Corporate Income Tax Rate0%
West Virginia Corporate Income Tax Rate6.5%$0
Wisconsin Corporate Income Tax Rate7.9%$0
Wyoming Corporate Income Tax Rate0%

Corporate Income Tax Rates by State (Downloadable Graphic)

Feel free to download our graphic that shows the fixed, variable, and 0% corporate income tax rates in 2021 for all 50 states and D.C. If you want to include it on your website please link back and reference this page as the source.

Corporate Income Tax Rates by State