Illinois among 6 states with highest corporate tax rates
Top marginal corporate tax rates as of Jan. 1, 2021
Nevada, Ohio, Texas, and Washington do not have a corporate income tax but do have a gross receipts tax with rates not strictly comparable to corporate income tax rates. Delaware, Oregon, and Tennessee have gross receipts taxes in addition to corporate income taxes, as do several states like Pennsylvania, Virginia, and West Virginia, which permit gross receipts taxes at the local (but not state) level. Florida’s corporate income tax rate willl return to 5.5% for tax years beginning on or after Jan. 1, 2022. Georgia’s corporate income tax rate will revert to 6% on Jan. 1, 2026. Illinois’ rate includes two separate corporate income taxes, one at a 7% rate and one at a 2.5% rate. Indiana’s rate will change to 4.9% on July 1, 2021. Mississippi continues to phase out the 3% bracket by increasing the exemption by $1,000 a year. By the start of 2022, the 3% bracket will be fully eliminated. In New Jersey, the rates indicated apply to a corporation’s entire net income rather than just income over the threshold. A temporary and retroactive surcharge is in effect from 2020 to 2023, bringing the rate to 11.5% for businesses with income over $1 million. In addition to regular income taxes, many states impose other taxes on corporations such as gross receipts taxes and capital stock taxes. Some states also impose an alternative minimum tax and special rates on financial institutions.