State corporate income tax guide and state personal income tax guide

All states have taxes and fees. We are always fascinated at where people can live and operate their businesses to avoid as much tax as possible LEGALLY. If you’ll look at the various state links below, you’ll find the personal income tax rates, corporate income tax rates, corporate franchise tax rates, forms to file, sales tax, deductions, exemptions, and all the state agency details that govern these taxes.

The thing about taxes and fees are that some states are what we would call “fee” states, like Texas for instance. Texas charges $350 to form an LLC, and regular items that are free in most states have fees associated with them. BUT, Texas has no personal income tax, and no tax on the company level for the first 1 million dollars of revenue. So you could have a great mid-sized business in Texas and pull in 990,000 dollars a year and not pay any tax at all. Texas has sales tax, so forming companies in other states that don’t have sales tax to buy things in can be advantageous. Such as buying that Ferrari you always wanted in a Montana LLC and thus not paying sales tax for the car.

Other states are what we call “taxing” states. Oregon for example has no sales tax, but they have one of the highest income taxes in America, and are starting to have higher fees on random things. This would be what I would call a “taxing” state. Then there’s some that have both like New Jersey, making it an all around tax and fee heavy state to live in.

Ultimately, unless you want to go to great lengths and complications, it usually works out about the same as far as taxes and fees. Our state and local governments need revenue to survive. So if they start losing income in taxes, they will just bump up fees to make the difference. There are definitely states that overall will cost you less money to the government agencies than others. Please take a look at the different pages we have written below to explore the differences in taxes between the states. We also have provided all the correct form numbers and links to file your taxes in each state.

There are a lot of cool structuring things that can be done to minimize your taxes. The IRS will always be taxing you, and trying to play games with them could land you in jail. We can’t offer legal or tax advice on your situation. We would invite you to select the various links below that you would like to see more tax info on and if you would like to set up a company, we’ll be glad to help you do that for not much money.

State Corporate Tax Rate Personal Tax Rate
Alabama
Department of Revenue
6.5%
0-500 2%
500-3000 4%
3,000 + 5%
0-10,000 2%
10-20,000 3%
20-30,000 4%
30-40,000 5%
40-50,000 6%
50-60,000 7%
60-70,000 8%
70-80,000 9%
80-90,000 9.4%
90,000 + 9.4%
None
6.96% with a minimum payment of $50 regardless of net taxable profit.
0-10,000 2.59%
10,000-25,000 2.88%
25,000-50,000 3.36%
50,000-150,000 4.24%
150,000+ 4.54%
0-3,000 1%
3,000-6,000 2%
6,000-11,000 3%
11,000-25,000 5%
25,000-100,000 6%
100,000+ 6.5%
0-3,800 1%
3,800-7,600 2.5%
7,600-11,400 3.5%
11,400-19,000 4.5%
19,000-31,700 6%
31,700+ 7%
8.84% for non financial corporations
0-7,168 1.25%
7,168-16,994 2.25%
16,994-26,821 4.25%
26,821-37,233 6.25%
37,233-47,055 8.25%
47,055-1 Million 9.55%
1,000,000 + 10.55%
4.63% 4.6%
7.5%There is a $250 minimum payment to submit the tax return, even if you don’t make any money. There is also the BET tax with a $200 minimum.
0-10,000 3%
10,000+ 5%
8.7%Banks have a graduated cheaper rate for income over 20 million down to 2.7%.There is a gross receipt tax of .104 – 2.7% on income over about $200,000 each quarter.There is a franchise tax upon the authorized shares or gross assets. Usually about $100 unless you have a ton of shares and assets.
0-2,000 2.2%
2,000-5,000 3.9%
5,000-10,000 4.8%
10,000-20,000 5.2%
20,000-25,000 5.55%
25,000+ 6.95%
9.975% with a minimum tax payment of $100 just to submit a zero return
0-10,000 4%
10-40,000 6%
40,000+ 8.5%
5.5% None.
6%
0-750 1%
750-2,250 2%
2,250-3,750 3%
3,750-5,250 4%
5,250-7,000 5%
7,000 + 6%
0-25,000 4.4%
25,000-100,000 5.4%
100,000 + 6.4%
0-2,400 1.4%
2,400-4,800 3.2%
4,800-9,600 5.5%
9,600-14,400 6.4%
14,400-19,200 6.8%
19,200-24,000 7.2%
24,000-36,000 7.6%
36,000-48,000 7.9%
48,000-150,000 8.25%
150,000-175,000 9%
175,000-200,000 10%
200,000 + 11%
7.6% with a minimum payment of $20 even for a zero return.
0-1,272 1.6%
1,272-2,544 3.6%
2,544-3,816 4.1%
3,816-5,088 5.1%
5,088-6,360 6.1%
6,360-9,540 7.1%
9,540-25,441 7.4%
25,441 + 7.8%
7.3% 3% of federal net income.
8.5% 3.4%
0-25,000 6%
25,000-100,000 8%
100,000-250,000 10%
2500+ 12%
0-1,407 .36%
1,407-2,814 .72%
2,814-5,628 2.43%
5,628-12,663 4.5%
12,663-21,105 6.12%
21,105- 28,140 6.48%
28,140-42,210 6.8%
42,210-63,315 7.92%
63,315 + 8.98%
Kansas
Department of Revenue
0-50,000 4%
50,000 + 7.05%
0-15,000 3.5%
15,000-30,000 6.25%
30,000 + 6.45%
0-50,000 4%
50,000-100,000 5%
100,000 + 6%
0-3,000 2%
3,000-4,000 3%
4,000-5,000 4%
5,000-8,000 5%
8,000-75,000 5.8%
75,000+ 6%
0-25,000 4%
25,000-50,000 5%
50,000-100,000 6%
100,000-200,000 7%
200,000 + 8%
0-12,500 2%
12,500-50,000 4%
50,000 + 6%
0-25,000 3.5%
25,000-75,000 7.93%
75,000-250,000 8.33%
250,000 + 8.93%
0-5,050 2%
5,050-10,050 4.5%
10,050-20,150 7%
20,150 + 8.5%
8.25%
0-1,000 2%
1,000-2,000 3%
2,000-3,000 4%
3,000-150,000 4.75%
150,000-300,000 5%
300,000-500,000 5.25%
500,000-1 million 5.5%
1 million + 6.25%
9.5% with a minimum tax payment of $456.ALSO, there is a property tax of $2.60 for every $1000 of assets your business owns that is located in the state. 5.3% of regular income, distributions, dividends, and long term capital gains.
4.95% plus a modified gross receipts tax of .8% of sales minus purchases from other companies. 4.35%
9.8%There is a 5.8% minimum tax on value, if there is property owned in Minnesota.
0-22,730 5.35%
22,730-74,650 7.05%
74,650 + 7.85%
0-5,000 3%
5,000-10,000 4%
10,000 + 5%
0-5,000 3%
5,000-10,000 4%
10,000 + 5%
6.25% plus the Missouri franchise tax of .0333% of taxable capital in the state.
0-1,000 15%
1,000-2,000 2%
2,000-3,000 2.5%
3,000-4,000 3%
4,000-5,000 3.5%
5,000- 6,000 4%
6,000-7,000 4.5%
7,000-8,000 5%
8,000-9,000 5.5%
9,000 + 6%
6.75% with a $50 minimum fee for filing a return.
0-2,600 1%
2,600-4,600 2%
4,600-7,000 3%
7,000-9,500 4%
9,500-12,200 5%
12,200-15,600 6%
15,600 + 6.9%
0-100,000 5.58%
100,000 + 7.81%
0-2,400 2.56%
2,400-17,500 3.57%
17,500-27,000 5.12%
27,000 + 6.84%
No tax. There is a $200 a year “Business license tax”, but it’s just a flat fee, and there’s no income reporting. None.
8.5%NH has two corporate taxes: the Business Profits Tax (BPT) and the Business Enterprise Tax (BET). The BPT rate is 8.5% of income for corporations with gross receipts over $50K. The BET rate is 0.75% on the enterprise value tax base (total compensation paid out, including dividends and interest). The BET is assessed on corporations with gross receipts over $150K or an enterprise value tax base over $75K. 5%
0-50,000 6.5%
50,000-100,000 7.5%
100,000 + 9%

All Corporate returns have a $500 minimum payment, AND starting for the 2009 Tax season, the New Jersey Division of Revenue is making you pay half of it for the next year at the same time.

LLC’s only have a $125 per member minimum payment, but if your LLC is taxes as an S corporation with the IRS, you’ll be forced to pay the $500 minimum tax.

0-20,000 1.4%
20,000-35,000 1.75%
35,000-40,000 3.5%
40,000-75,000 5.525%
75,000-400,000 6.37%
400,000-500,000 8%
500,000-1 Million 10.25%
1 Million + 10.75%
0-500,000 4.8%
500,000- 1 million 6.4%
1 million + 7.6%
0-5,500 1.7%
5,500-11,000 3.2%
11,000-16,000 4.7%
16,000 + 4.9%
7.1% . There is a minimum tax of $100-$1500 depending on your County and assets.
0-8,000 4%
8,000-11,000 4.5%
11,000-13,000 5.25%
13,000-20,000 5.9%
20,000-200,000 6.85%
200,000-500,000 7.85%
500,000 + 8.97%
6.9% with a minimum tax payment of $35. There is a franchise tax on assets in North Carolina of $1.50 for every $1000.
0-12,750 6%
12,750-60,000 7%
60,000+ 7.75%
$0-3,000 4.1%
$3,000-8,000 5.6%
$8,000-20,000 6.4%
$20,000-30,000 6.5%
0-33,950 1.84%
33,950-82,250 3.44%
82,250-171,550 3.81%
171,550-372,950 4.42%
372,950 + 4.86%
.26% of your gross revenue. This is called the CAT return, or Commercial Activity Tax. This is on every entity, regardless of it being an LLC, Partnership, or Corporation. It has a $150 minimum payment.
0-5,000 .587%
5,000-10,000 1.174%
10,000-15,000 2.348%
15,000-20,000 2.935%
20,000-40,000 3.521%
40,000-80,000 4.109%
80,000-100,000 4.695%
100,000-200,000 5.451%
200,000 + 5.925%
Oklahoma
Tax Commission
6%. Plus a Oklahoma franchise tax of $1.25 for every $1000 of assets in Oklahoma.
0-1,000 .5%
1,000-2,500 1%
2,500-3,750 2%
3,750-4,900 3%
4,900-7,200 4%
7,200-8,700 5%
8,700 + 5.5%
0-250,000 6.6%
250,000 + 7.9%
0-3,050 5%
3,050-7,600 7%
7,600-125,000 9%
125,000-250,000 10.8%
250,000 + 11%
9.99% 3.07%
Rhode Island Division of Taxation 9% of net taxable income or $2.50 for every $10,000 of authorized capital stock, whichever is greater.There is a minimum franchise tax payment of $500.Otherwise called the Rhode Island Business Corporation Tax.Must be paid for LLCs and S corporation elections as well as C corporations.
0-33,950 3.75%
33,950-82,250 7%
82,250-171,550 7.75%
171,550-372,950 9%
372,950 + 9.9%
South Carolina
Department of Revenue
5%
0-2,670 0%
2,670-5,340 3%
5,340-8,010 4%
8,010-10,680 5%
10,680-13,350 6%
13,350+ 7%
South Dakota
Department of Revenue
None None
Tennessee
Department of Revenue
All Corporations, LLCs, and Partnerships, regardless of their tax status with the IRS are subject to the Tennessee franchise tax and Tennessee Excise tax.The franchise tax has a minimum payment of $100. Franchise tax is figured at .25% of the net worth of corporation or the tangible property.The excise tax is 6.5% of the net taxable income made in TN. 6%
Texas has a gross receipt tax of 1% on gross income over $1,000,000. You can use the e-Z computation form to get .575% tax if your sales are under 10 million a year. Wholesalers and retailers are automatically at .5% tax.You must still file the tax return for informational purposes every May 15th. In 2009, Texas passed legislation to move the threshold of gross receipts from 300,000 to 1 million. Finally a state that get’s it! Stimulate the economy by lowering taxes and fees… Not raising them!Most Texas businesses will not have to pay anything in tax on the company level or personally. None
5% with a minimum tax payment for the Corporation franchise privilege tax of $100 for every return.S corporations do not have to pay the minimum franchise tax. 5%
0-10,000 6%
10,000-25,000 7%
25,000 + 8.5%
0-33,950 3.55%
33,950-82,250 7%
82,250-171,550 8.25%
171,550-372,950 8.9%
372,950 + 9.4%
6%
0-3,000 2%
3,000-5,000 3%
5,000-17,000 5%
17,000 + 5.75%
Washington
Department of Revenue
Washington charges a gross income tax of 1.5% on your revenue after your first $35,000 of gross receipts. Washington calls this a business and occupations tax, or better known in the state as a B & O tax. This is tracked by your Washington state UBI number (Unified Business Identifier number)There are basically no deductions. Washington state will deduct the money you made in another state and paid taxes for there, which can make it a very attractive state to own a national company in. None
West Virginia
Department of Revenue
8.5% of net income with minimum payment of $50 for Business franchise tax. Franchise tax rate is .55% of capital.
0-10,000 3%
10,000-25,000 4%
25,000-40,000 4.5%
40,000-60,000 6%
60,000 + 6.5%
7.9%
0-10,220 4.6%
10,220-20,440 6.15%
20,440-153,280 6.5%
153,280-225,000 6.75%
225,000 + 7.75%
Wyoming is the least taxed state in America if you figure there is no personal or corporate income tax. The sales tax is about 5.42%, which is fairly low. Wyoming does have relatively high property tax, but if you don’t own a home in Wyoming, you’ll never know the difference. None