Corporate Income Tax Rates by State for 2023

Author: Jason Coles

Updated On:

Updated On:

The U.S. does not have a fixed rate of corporate income tax that is a one-size-fits-all for every state. 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 income (net profit) your business generates at the end of each financial year. The lowest corporate tax rates for 2023 noted below are fixed regardless of the income your business earns.

Lowest Corporate Tax Rates by State for 2023

Lowest corporate income tax

1. North Carolina: 2.5%

2. Missouri: 4%

3. Oklahoma: 4%

4. North Dakota: 4.31%

5. Utah: 4.85%

It is important to note that there are two states with 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 South Dakota and Wyoming.

  • 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 2023, 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?

Highest corporate income tax states

1. New Jersey: 11.5%

2. Minnesota: 9.8%

3. Illinois: 9.5%

4. Alaska: 9.4%

5. Pennsylvania: 8.99%

Corporate Tax Rates by State for 2023

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
Arizona Corporate Income Tax Rate4.9%$0
Arkansas Corporate Income Tax Rates1.0%$0
California Corporate Income Tax Rate8.84%$0
Colorado Corporate Income Tax Rate4.4%$0
Connecticut Corporate Income Tax Rate7.5%$0
Delaware Corporate Income Tax Rate8.7%$0
Florida Corporate Income Tax Rate5.5%$0
Georgia Corporate Income Tax Rate5.75%$0
Hawaii Corporate Income Tax Rates4.4%$0
Idaho Corporate Income Tax Rate5.8%$0
Illinois Corporate Income Tax Rate9.5%$0
Indiana Corporate Income Tax Rate4.9%$0
Iowa Corporate Income Tax Rates5.5%$0
Kansas Corporate Income Tax Rates4%$0
Kentucky Corporate Income Tax Rate5%$0
Louisiana Corporate Income Tax Rates3.5%$0
Maine Corporate Income Tax Rates3.50%$0
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 Rates4%$5,000
Montana Corporate Income Tax Rate6.75%$0
Nebraska Corporate Income Tax Rates5.58%$0
Nevada Corporate Income Tax Rate0%
New Hampshire Corporate Income Tax Rate7.5%$0
New Jersey Corporate Income Tax Rates6.5%$0
New Mexico Corporate Income Tax Rates4.8%$0
New York Corporate Income Tax Rate6.5%$0
North Carolina Corporate Income Tax Rate2.5%$0
North Dakota Income Tax Rates1.41%$0
Ohio Corporate Income Tax Rate0%
Oklahoma Corporate Income Tax Rate4%$0
Oregon Corporate Income Tax Rates6.6%$0
Pennsylvania Corporate Income Tax Rate8.99%$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 Rate4.85%$0
Vermont Corporate Income Tax Rates6%$0
Virginia Corporate Income Tax Rate6%$0
Washington Corporate Income Tax Rate0%
Washington D.C. Corporate Income Tax Rate8.25%$0
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 2023 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

State Income Tax Rates

Alaska, Colorado, Iowa, Minnesota, Missouri, New Jersey, North Carolina, North Dakota, Pennsylvania

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Jason Coles

Jason Coles is the Founder of Foreign USA and its Chief Content Writer and Editor. Recognized as a prolific business plan writer by many prominent immigration attorneys in the U.S. who refer his services to their clients regularly, Jason has written over 1,365 business plans across the past 17+ years for start-up companies and franchises looking to expand their footprint in the United States. Jason is considered a seasoned expert in his field. He creates detailed business plans for his clients that include five-year financial projections, market and industry analysis reports, demographic studies, organizational charts, job descriptions, employee hiring plans, and more.