Friday, December 5, 2025

High Corporate Tax States 12-5-25

As of 2025, the states with the highest top marginal corporate tax rates are New Jersey (11.5%), Minnesota (9.8%), and Illinois (9.5%).  

The top corporate tax rates for states with a corporate income tax are:

New Jersey: 11.5% (for income above $10 million)

Minnesota: 9.8%

Illinois: 9.5% (includes a 7% corporate income tax and a 2.5% personal property replacement tax)

Alaska: 9.4% (graduated, for income above $222,000)

Maine: 8.93% (for income above $3.5 million)

California: 8.84% (flat rate)

Delaware: 8.7% (flat rate)

Vermont: 8.5% (for income above $25,000)

Maryland: 8.25% (flat rate)

Connecticut: 7.5% (with an 8.25% rate for income over $100 million) 

Note that several states, including Nevada, Ohio, Texas, and Washington, impose a gross receipts tax instead of a traditional corporate income tax, while South Dakota and Wyoming have neither a corporate income nor a gross receipts tax. 

As of 2025, the states with the highest top marginal corporate tax rates are New Jersey (11.5%), 

Minnesota (9.8%), and Illinois (9.5%). 

Forty-four states impose a corporate income tax, with rates varying significantly. The top marginal rates for the highest-tax states are: 

New Jersey: 11.5% (includes a 2.5% surtax on income over $1 million)

Minnesota: 9.8% (flat rate)

Illinois: 9.5% (includes a 2.5% personal property replacement tax, making the effective rate 9.5%)

Alaska: 9.4% (graduated, reaching 9.4% on income over $222,000)

Maine: 8.93% (graduated, top rate on income over $3.5 million)

California: 8.84% (flat rate)

Delaware: 8.7% (flat rate, also imposes a gross receipts tax) 

States with no corporate income tax

Six states do not levy a corporate income tax: Nevada, Ohio, South Dakota, Texas, Washington and Wyoming.

However, several of these states impose a gross receipts tax instead, which applies to sales regardless of a business's profitability. 

https://www.google.com/search?q=what+states+have+the+highest+corporate+tax+rates+2025

Norb Leahy, Dunwoody GA Tea Party Leader

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