State Corporate Income Tax Rates (2026)

Every C corporation pays the 21% federal corporate tax. On top of that, 44 states charge a corporate income tax, with top rates in 2026 from 2% in North Carolina to 11.5% in New Jersey. The simple average is about 6.51%.

Nevada, Ohio, Texas and Washington have no corporate income tax but tax gross receipts, so a business can owe tax even when it makes a loss. South Dakota and Wyoming have neither.

The table shows each state's top statutory rate. 31 states use a single flat rate. 13 use brackets: Alaska, Arkansas, Florida, Hawaii, Iowa, Kansas, Maine, Mississippi, New Jersey, New York, North Dakota, Oregon and Vermont. For most profitable companies in those states the top rate applies to most income, but small companies pay less.

South Dakota and Wyoming have no corporate income tax and no broad gross receipts tax. Corporations there pay only federal tax on profit, plus property taxes, sales taxes and filing fees.

The other four states without a corporate income tax tax business revenue instead:

• Nevada: Commerce Tax on gross revenue above $4M instead of an income tax.
• Ohio: Commercial Activity Tax of 0.26% on receipts above $6M instead of an income tax.
• Texas: Franchise (margin) tax of 0.75% (0.375% retail/wholesale) instead of an income tax.
• Washington: B&O gross receipts tax instead of an income tax.

Gross receipts taxes have low rates but no deduction for costs, so a distributor with thin margins can pay more than it would under a 5% income tax. High thresholds exempt most small businesses: Texas businesses with revenue below $2.65 million owe no franchise tax, and Nevada's Commerce Tax starts at $4 million.

State corporate income tax is a deductible expense on the federal return. A corporation in a state with a 9% rate that earns $1,000,000 pays $90,000 of state tax, then federal tax of 21% on the remaining $910,000, or $191,100. Total tax is $281,100, a combined rate of 28.11%, not 30%. The formula is 21% + state rate × (1 − 0.21).

The combined rate ranges from 21% in states without the tax to about 30.09% in New Jersey. Local corporate taxes, such as New York City's 8.85% business corporation tax and Portland's business license tax, are not included.

The headline rate is a starting point. Several other rules often matter more:

• Apportionment. Most states tax a multistate corporation on the share of its income tied to sales in the state. A company with few in-state customers pays little even in a high-rate state.
• Minimum and franchise taxes. California charges an $800 minimum franchise tax even with no profit. Tennessee adds a 0.25% franchise tax on net worth, and several states tax capital stock or net worth.
• Extra taxes on receipts. Delaware has a gross receipts tax alongside its 8.7% income tax, and Oregon adds a Corporate Activity Tax on receipts above $1 million.
• Pass-through owners. Most small businesses are LLCs or S corporations that don't pay corporate tax. For them, the state personal income tax rate matters more.

• Georgia: corporate and personal rates cut to 4.99% for 2026 under HB 463.
• Utah: cut to 4.45%, retroactive to January 1, 2026, under SB 60.
• Nebraska: 4.55% in 2026, falling to 3.99% in 2027.
• North Carolina: 2% in 2026, falling to 1% in 2028 and 0% after 2029.
• Pennsylvania: 7.49% in 2026, falling 0.5 points a year to 4.99% in 2031.
• Iowa: 5.5% on the first $100,000 and 7.1% above, with further cuts tied to revenue.

Rates are 2026 statutory rates from state revenue departments and the Tax Foundation's 2026 corporate tax table. Each state guide lists its sources.