2025 State Corporate Income Tax Rates & Brackets

Nevada, Ohio, Texas, and Washington impose gross receipts taxes instead of corporate income taxes. Delaware, Oregon, and Tennessee impose gross receipts taxes in addition to their corporate income taxes. Some localities in Pennsylvania, Virginia, and West Virginia state income tax rates likewise impose gross receipts taxes, which are generally understood to be more economically harmful than corporate income taxes. In 2025, state income tax rates continue to vary widely across the U.S. Whether you live in a tax-free haven or a high-tax state, understanding the current rates helps you make smarter financial choices. This means there are higher tax rates for higher income levels.

Mortgage Interest Tax Deduction Tips for Reducing Taxable Income

In the majority of states, non-residents of the state have to pay tax on any income generated in the state. Typically, state income tax returns are due at the same time as your federal tax return — April 15th. However, some states may have different deadlines, and it’s worth checking the specifics for where you live, especially in years where the date might be pushed due to holidays or weekends.

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For instance, relocating to a state with no corporate income tax, like Wyoming, could result in significant tax savings. However, it’s essential to weigh these benefits against other factors such as market access, labor availability, and infrastructure. Among states that levy an income tax, the highest top rates are found in California, Hawaii, and New York, where the highest earners may pay over 10% in state taxes. On the other hand, states like North Dakota and Arizona have some of the lowest state income tax rates in the country. This top rate applies to incomes between $24,300 and $87,000 for taxpayers earning $87,000 or less and to incomes over $8,801 for taxpayers earning more than $87,000. State income tax rates in 2025 range from zero in places like Wyoming and Florida to more than 10% in California and New York, with many states in between.

State Individual Income Tax Rates and Brackets, 2025

For more information about the specific taxes imposed by your jurisdiction, refer to your state on the official state tax department website. The IRS will gross vs net typically issue you a tax refund within 21 days of you filing an electronic tax return documentation, and 6 weeks if the tax return was mailed. Examples of local taxes include regulations such the Los Angeles Property Tax and San Francisco Hotel Tax in California, or the Las Vegas Tourism Tax in Nevada. You may have a job that requires travel to other states, but this does not typically affect the rate of tax you pay on your income; it is the state you live in that determines this.

Total Estimated 2024 Tax Burden

• The city of Milwaukee is the only municipality that imposes a city sales and use tax.
• While some states have no income tax, they typically impose sales taxes to generate revenue.
• Tax extensions are becoming increasingly popular in the United States, for both individuals and businesses….
• According to the latest economic data from the US Census Bureau, the average per capita state and local tax burden is $7,109.

Interest is also due on any additional taxes that may become due after any adjustments made by tax authorities. While tax rates might not make or break your decision to live in a particular state, they are worth considering, especially as you plan for retirement or evaluate your overall financial health. A lighter tax burden could mean more freedom to enjoy your earnings now and more security to save for those golden years. Property tax rates are critical to consider when buying a home or planning your finances.

• For personalized help with state taxes, consult a local professional such as a CPA or tax preparer.
• It shows the income tax range in percentage terms for those states that levy a higher tax rate based on your level of income, including the progressive tax brackets.
• For tax year 2022, the tax rates on those levels of income were 5.85 and 6.25 percent, respectively.
• In this comprehensive state-by-state guide to US income tax rates 2025, we break down the current tax rates for each state so you can plan accordingly.

State Corporate Income Tax Rates and Brackets, 2015

• While many of these dates remain consistent, it’s important for taxpayers to regularly verify this date each year to avoid a late or missed filing.
• But those in a higher income bracket should generally rely on the marginal tax rate for planning.
• We are not a comparison-tool and these offers do not represent all available deposit, investment, loan or credit products.
• This means that because they are not considered employees, they are responsible for their own federal payroll taxes (also known as self-employment tax).
• State tax rates can change annually based on legislative decisions, economic conditions, and budgetary needs.

Some states tie their standard deductions and personal exemptions to the federal tax code, while others set their own or offer none at all. In 2025, these rates exhibit significant diversity, reflecting each state’s fiscal policies and economic strategies. This article delves into the primary state taxes—income, sales, Travel Agency Accounting and corporate income taxes—providing a comprehensive comparison to aid taxpayers nationwide. State income tax is imposed at a fixed or graduated rate on taxable income of individuals, corporations, and certain estates and trusts.