Louisiana posted 15th highest corporate income tax in 2018

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.

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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