Among the District of Columbia and the 44 states that levy corporate income taxes, Louisiana ranked No. 15 for the top tax rate on business revenues, according to a Tax Foundation analysis of 2018 tax numbers.
Louisiana has five tax brackets on corporate income, with a top rate of 8 percent, the study by policy analyst Morgan Scarboro said.
Iowa has the highest corporate income tax rate (12 percent), while North Carolina’s 3 percent rate ranks the lowest nationwide among states that levy a corporate income tax, the analysis concluded.
For 2018, Connecticut brought down its top marginal corporate income tax rate from 9 percent to 8.25 percent, and the District of Columbia dropped its rate to 8.25 percent. Indiana’s rate dipped from 6 percent to 5.75 percent in July.
Nevada, Ohio, Texas and Washington levy business taxes on gross receipts in lieu of a corporate income tax. Only South Dakota and Wyoming have neither a corporate income tax nor a gross receipts tax.
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Which states have the highest corporate tax rates?
| Rank | State | Brackets | Rates per Bracket | Top Rates |
| 1 | Iowa | $0 $25,000 $100,000 $250,000 |
6.00% 8.00% 10.00% 12.00% |
12.00% |
| 2 | Pennsylvania | $0 | 9.99% | 9.99% |
| 3 | Minnesota | $0 | 9.80% | 9.80% |
| 4 | Illinois | $0 | 9.50% | 9.50% |
| 5 | Alaska | $0 $25,000 $49,000 $74,000 $99,000 $124,000 $148,000 $173,000 $198,000 $222,000 |
0.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 9.40% |
9.40% |
| 6 | New Jersey | $100,000 | 9.00% | 9.00% |
| 7 | Maine | $0 $25,000 $75,000 $250,000 |
3.50% 7.93% 8.33% 8.93% |
8.93% |
| 8 | California | $0 | 8.84% | 8.84% |
| 9 | Delaware | $0 | 8.70% | 8.70% |
| 10 | Vermont | $0 $10,000 $25,000 |
6.00% 7.00% 8.50% |
8.50% |
| 11 | Connecticut | $0 | 8.25% | 8.25% |
| 12 | District of Columbia | $0 | 8.25% | 8.25% |
| 13 | Maryland | $0 | 8.25% | 8.25% |
| 14 | New Hampshire | $0 | 8.20% | 8.20% |
| 15 | Louisiana | $0 $25,000 $50,000 $100,000 $200,000 |
4.00% 5.00% 6.00% 7.00% 8.00% |
8.00% |
| 16 | Massachusetts | $0 | 8.00% | 8.00% |
| 17 | Wisconsin | $0 | 7.90% | 7.90% |
| 18 | Nebraska | $0 $100,000 |
5.58% 7.81% |
7.81% |
| 19 | Oregon | $0 $1,000,000 |
6.60% 7.60% |
7.60% |
| 20 | Idaho | $0 | 7.40% | 7.40% |
| 21 | Kansas | $0 $50,000 |
4.00% 7.00% |
7.00% |
| 22 | Rhode Island | $0 | 7.00% | 7.00% |
| 23 | Montana | $0 | 6.75% | 6.75% |
| 24 | Alabama | $0 | 6.50% | 6.50% |
| 25 | Arkansas | $0 $3,000 $6,000 $11,000 $25,000 $100,000 |
1.00% 2.00% 3.00% 5.00% 6.00% 6.50% |
6.50% |
| 26 | New York | $0 | 6.50% | 6.50% |
| 27 | Tennessee | $0 | 6.50% | 6.50% |
| 28 | West Virginia | $0 | 6.50% | 6.50% |
| 29 | Hawaii | $0 $25,000 $100,000 |
4.40% 5.40% 6.40% |
6.40% |
| 30 | Missouri | $0 | 6.25% | 6.25% |
| 31 | Georgia | $0 | 6.00% | 6.00% |
| 32 | Indiana | $0 | 5.75% | 5.75% |
| 33 | Kentucky | $0 $50,000 $100,000 |
4.00% 5.00% 6.00% |
6.00% |
| 34 | Michigan | $0 | 6.00% | 6.00% |
| 35 | Oklahoma | $0 | 6.00% | 6.00% |
| 36 | Virginia | $0 | 6.00% | 6.00% |
| 37 | New Mexico | $0 $500,000 |
4.80% 5.90% |
5.90% |
| 38 | Florida | $0 | 5.50% | 5.50% |
| 39 | Mississippi | $0 $1,000 $5,000 $10,000 |
0.00% 3.00% 4.00% 5.00% |
5.00% |
| 40 | South Carolina | $0 | 5.00% | 5.00% |
| 41 | Utah | $0 | 5.00% | 5.00% |
| 42 | Arizona | $0 | 4.90% | 4.90% |
| 43 | Colorado | $0 | 4.63% | 4.63% |
| 44 | North Dakota | $0 $25,000 $50,000 |
1.41% 3.55% 4.31% |
4.31% |
| 45 | North Carolina | $0 | 3.00% | 3.00% |
Source: Tax Foundation; state tax statutes, forms, and instructions; Bloomberg BNA
This article was first published by Watchdog.org.
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