State Corporate Income Tax Rates and Brackets, 2025
Forty-four states levy a corporate income tax, with top rates ranging from a 2.25 percent flat rate in North Carolina to a 11.5 percent top marginal rate in New Jersey.
7 min read
Expert
Abir Mandal
Senior Policy Analyst
Abir Mandal is a Senior Policy Analyst at the Tax Foundation, focused on state tax policy.
Dr. Mandal holds a PhD in economics from Clemson University, where he focused on economic growth and development, trade, and econometrics.
Prior to the Tax Foundation, he was an assistant professor of economics at the University of Mount Olive, in North Carolina, which followed faculty and research positions at the University of Kansas. His work has been published in various journals as well as non-academic outlets.
Born and brought up in New Delhi, India, Dr. Mandal now lives outside Raleigh, NC, with his two cats that have moved all around the country with him. When he is free, he prefers to spend time at the gym, the gun range, and exploring quaint coffee shops and bourbon bars around the Research Triangle Park with friends.
Latest Work
Nebraska Property Tax Relief After LB 34
Nebraska has an opportunity to revise the property tax package enacted in 2024 to ensure that Nebraskans enjoy meaningful property tax relief.
32 min read
State Tax Changes Taking Effect January 1, 2025
Thirty-nine states will begin 2025 with notable tax changes, including nine states cutting individual income taxes. Recent years have seen a wave of significant tax reforms, and the changes scheduled for 2025 show that these efforts have not let up.
25 min read
Alabama Expands Tax-Free Overtime Eligibility, but Should Repeal Entire Exemption
Tax reform in Alabama is desirable and very possible. However, the overtime exemption, which complicates the tax code, reduces neutrality, and adds to compliance and reporting costs, is not a good example.
4 min read
South Dakota’s Initiated Measure 28 Undermines Sales Tax Rate Reductions
Especially for a state that relies so heavily on the sales tax as a source of revenue—and where most people want to keep it that way—a broad base and a low rate is crucial.
5 min read
Minnesota High Court Ruling Will Increase Business Tax Compliance Costs
With a changing economy—the law is about companies selling tangible products, but our economy is increasingly service-oriented—and state-level tests to the ongoing validity of the law, perhaps the time has come for Congress to update and expand upon these protections, which are designed to limit states from imposing substantial tax remittance and compliance burdens on businesses with only the most minimal of contacts with the state.
5 min read
State Tax Ballot Measures to Watch in 2024
Taxes are on the ballot this November—not just in the sense that candidates at all levels are offering their visions for tax policy, but also in the literal sense that voters in some states will get to decide important questions about how their states raise revenue.
9 min read
New York Budget Gap Narrows, but No Long-Term Solution in Sight
The recently released FY 2025 budget for New York State signals a degree of optimism, with caveats. New York cannot tax itself toward a balanced budget.
6 min read
Good Policy Leads to More Tax Cuts for West Virginia
Next year, West Virginians will see an income tax cut thanks to revenue triggers in a 2023 law. The Mountain State joins 14 other states that have cut income taxes this year.
4 min read
ARPA’s Tax Mandate Ruled Unconstitutional by Appellate Court
The Fifth Circuit has affirmed states’ authority over their respective tax policies and has asserted that the offset clause—often called the “Tax Mandate”—of the American Rescue Plan Act (ARPA) has enough fiscal impact on a state’s budget so as to be coercive, as opposed to incentivizing.
5 min read
Retail Delivery Fees Are Not the Panacea for States’ Transport Budget Woes
Retail delivery fees are an inefficient and ineffective way to close budget gaps, and lawmakers should consider other, more sound, policy options.
5 min read