US State Business Taxes (2026)
Every business pays the 21% federal corporate rate or federal personal rates. What changes from state to state is everything on top: corporate and personal income tax, gross receipts taxes, sales tax and filing fees.
No personal income tax on wages
9 states
All 50 states compared
| State | Corporate tax | Personal income tax | State sales tax | Avg. combined | LLC filing fee |
|---|---|---|---|---|---|
| Alabama | 6.5% | Up to 5% | 4% | 9.46% | $200 |
| Alaska | 9.4% | None | 0% | 1.82% | $250 |
| Arizona | 4.9% | 2.5% flat | 5.6% | 8.54% | $50 |
| Arkansas | 4.3% | Up to 3.9% | 6.5% | 9.48% | $45 |
| California | 8.84% | Up to 13.3% | 7.25% | 9.03% | $70 |
| Colorado | 4.4% | 4.4% flat | 2.9% | 7.89% | $50 |
| Connecticut | 7.5% | Up to 6.99% | 6.35% | 6.35% | $120 |
| Delaware | 8.7% | Up to 6.6% | 0% | 0% | $110 |
| Florida | 5.5% | None | 6% | 6.98% | $125 |
| Georgia | 4.99% | 4.99% flat | 4% | 7.56% | $110 |
| Hawaii | 6.4% | Up to 11% | 4% | 4.5% | $50 |
| Idaho | 5.3% | 5.3% flat | 6% | 6.03% | $100 |
| Illinois | 9.5% | 4.95% flat | 6.25% | 8.98% | $150 |
| Indiana | 4.9% | 2.95% flat | 7% | 7% | $100 |
| Iowa | 7.1% | 3.8% flat | 6% | 6.94% | $50 |
| Kansas | 7% | Up to 5.58% | 6.5% | 8.71% | $85 |
| Kentucky | 5% | 3.5% flat | 6% | 6% | $40 |
| Louisiana | 5.5% | 3% flat | 5% | 10.13% | $125 |
| Maine | 8.93% | Up to 7.15% | 5.5% | 5.5% | $175 |
| Maryland | 8.25% | Up to 6.5% | 6% | 6% | $100 |
| Massachusetts | 8% | Up to 9% | 6.25% | 6.25% | $500 |
| Michigan | 6% | 4.25% flat | 6% | 6% | $50 |
| Minnesota | 9.8% | Up to 9.85% | 6.875% | 8.14% | $135 |
| Mississippi | 5% | Up to 4% | 7% | 7.06% | $50 |
| Missouri | 4% | Up to 4.7% | 4.225% | 8.44% | $50 |
| Montana | 6.75% | Up to 5.65% | 0% | 0% | $35 |
| Nebraska | 4.55% | Up to 4.55% | 5.5% | 6.98% | $100 |
| Nevada | Gross receipts tax | None | 6.85% | 8.24% | $75 |
| New Hampshire | 7.5% | None | 0% | 0% | $100 |
| New Jersey | 11.5% | Up to 10.75% | 6.625% | 6.6% | $125 |
| New Mexico | 5.9% | Up to 5.9% | 4.875% | 7.68% | $50 |
| New York | 7.25% | Up to 10.9% | 4% | 8.54% | $200 |
| North Carolina | 2% | 3.99% flat | 4.75% | 7.1% | $125 |
| North Dakota | 4.31% | Up to 2.5% | 5% | 7.09% | $135 |
| Ohio | Gross receipts tax | 2.75% flat | 5.75% | 7.29% | $99 |
| Oklahoma | 4% | Up to 4.5% | 4.5% | 9.06% | $100 |
| Oregon | 7.6% | Up to 9.9% | 0% | 0% | $100 |
| Pennsylvania | 7.49% | 3.07% flat | 6% | 6.34% | $125 |
| Rhode Island | 7% | Up to 5.99% | 7% | 7% | $150 |
| South Carolina | 5% | Up to 5.21% | 6% | 7.49% | $110 |
| South Dakota | None | None | 4.2% | 6.11% | $150 |
| Tennessee | 6.5% | None | 7% | 9.61% | $300 |
| Texas | Gross receipts tax | None | 6.25% | 8.2% | $300 |
| Utah | 4.45% | 4.45% flat | 6.1% | 7.42% | $59 |
| Vermont | 8.5% | Up to 8.75% | 6% | 6.43% | $155 |
| Virginia | 6% | Up to 5.75% | 5.3% | 5.77% | $100 |
| Washington | Gross receipts tax | None | 6.5% | 9.57% | $180 |
| West Virginia | 6.5% | Up to 4.58% | 6% | 6.6% | $100 |
| Wisconsin | 7.9% | Up to 7.65% | 5% | 5.72% | $130 |
| Wyoming | None | None | 4% | 5.39% | $100 |
State guides
Frequently Asked Questions
Which states have no corporate income tax?
South Dakota and Wyoming have no corporate income tax and no gross receipts tax. Nevada, Ohio, Texas and Washington have no corporate income tax but tax business gross receipts instead.
Which states have no personal income tax?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not tax wage income. Washington taxes capital gains above a large exemption and has enacted an income tax on income over $1 million from 2028.
Which state has the highest corporate income tax?
New Jersey has the highest top rate at 11.5% for companies with more than $10 million of income, including its 2.5% Corporate Transit Fee. Minnesota (9.8%), Illinois (9.5%) and Alaska (9.4%) follow.
Should I form my company in the state where I live?
Usually, yes. A business pays tax and registration fees in every state where it operates, so forming elsewhere (for example in Delaware or Wyoming) typically adds a second set of fees without removing tax in your home state. Delaware remains the norm for venture-backed C corporations.