Source: Compiled by FTA from various
sources
Note: Michigan imposes a single business tax (sometimes
described as a business activities tax or value added
tax) of 1.9% on the sum of federal taxable income
of the business, compensation paid to employees, dividends,
interest, royalties paid and other items. Similarly,
Texas imposes a franchise tax of 4.5% of earned surplus.
Nevada, Washington, and Wyoming do not have state
corporate income taxes.
(a) Rates listed include the corporate
tax rate applied to financial institutions or excise
taxes based on income. Some states have other taxes
based upon the value of deposits or shares.
(b) Minimum tax is $50 in Arizona, $50
in North Dakota (banks), $10 in Oregon, $250 in Rhode
Island, $500 per location in South Dakota (banks),
$100 in Utah, $250 in Vermont.
(c) Minimum tax is $800. The tax rate
on S-Corporations is 1.5% (3.5% for banks).
(d) Or 3.1 mills per dollar of capital
stock and surplus (maximum tax $1 million) or $250.
(e) The marginal rate decreases over
4 brackets ranging from $20 to $650 million in taxable
income. Building and loan associations are taxed at
a flat 8.7%.
(f) Or 3.3% Alternative Minimum Tax.
An exemption of $5,000 is allowed.
(g) Capital gains are taxed at 4%. There
is also an alternative tax of 0.5% of gross annual
sales.
(h) Minimum tax is $20. An additional
tax of $10 is imposed on each return.
(i) Includes a 2.5% personal property
replacement tax.
(j) Consists of 3.4% on income from
sources within the state plus a 4.5% supplemental
income tax.
(k) Fifty percent of the federal income
tax is deductible.
(l) Plus a surtax of 3.35% (2.125% for
banks) taxable income in excess of $50,000 ($25,000).
(m) Or a 27% tax on Federal Alternative
Minimum Taxable Income.
(n) Rate includes a 14% surtax, as does
the following: an additional tax of $7.00 per $1,000
on taxable tangible property (or net worth allocable
to state, for intangible property corporations); minimum
tax of $456.
(o) Plus a 5.8% tax on any Alternative
Minimum Taxable Income over the base tax.
(p) A 7% tax on taxpayers using water's
edge combination. Minimum tax is $50.
(q) Plus a 0.50 percent tax on the enterprise
base (total compensation, interest and dividends paid).
Business profits tax imposed on both corporations
and unincorporated associations.
(r) The rate reported in the table is
the corporation business franchise tax rate. The minimum
tax is $210. Corporations not subject to the franchise
tax are subject to a 7.25% income tax. Banking and
financial corporations other than savings institutions
are subject to the franchise tax. Corporations with
net income under $100,000 are taxed at 7.5%. Beginning
in 2001, the tax on S corporations is being phased
out over a 3-year period. The tax rate on a New Jersey
S corporation that has entire net income not subject
to federal corporate income tax in excess of $100,000
will remain at 2% for privilege periods ending on
or before June 30, 2001. The rate will be 1.33% for
privilege periods ending on or after July 1, 2001,
but on or before June 30, 2002; the rate will be 0.67%
for privilege periods ending on or after July 1, 2002,
but on or before June 30, 2003; and there will be
no tax imposed for privilege periods ending on or
after July 1, 2003. The tax on S corporation with
entire net income not subject to federal corporate
income tax of $100,00 or less is eliminated for privilege
periods ending on or after July 1, 2001. Regulated
investment companies are subject to a flat tax of
$250 annually.
(s) Or 1.78 (0.1 for banks) mills per
dollar of capital (up to $350,000; or 2.5% of the
minimum taxable income; or a minimum of $1,500 to
$100 depending on payroll size ($250 for banks); if
any of these is greater than the tax computed on net
income. An addition tax of 0.9 mills per dollar of
subsidiary capital is imposed on corporations. Small
corporations with income under $290,000 pay a 7.5%
tax on all income.
(t) Financial institutions are also
subject to a tax equal to $30 per one million in assets.
(u) Or 4.0 mills time the value of the
taxpayer's issued and outstanding share of stock with
a maximum payment of $150,000. An additional litter
tax is imposed equal to 0.11% on the first $50,000
of taxable income, 0.22% on income over $50,000; or
0.14 mills on net worth.
(v) For banks, the alternative tax is
$2.50 per $10,000 of capital stock ($100 minimum).
(w) Savings and Loans are taxed at a
6% rate.
(x) State and national banks subject
to the state's franchise tax on net capital is exempt
from the income tax.
(y) Minimum tax is $100. Includes surtax.
Effective 1/1/2003, tax rate decreases to 9.45%.
