Index Component
Delaware — Corporate Taxes
#50 on Corporate Taxes out of 50 states
Score 1.33 / 10 · unchanged from 2026
21.3% of the total Index score
Delaware ranks 50th for corporate taxes on the 2027 State Tax Competitiveness Index.
Delaware on Corporate Taxes across the States
#50 on Corporate TaxesThe row places the states on a 0 to 10 score scale for Corporate Taxes. Delaware is the large outlined dot, and the dashed line is the 50-state median, so a dot to its right scores better than the typical state. Hover over or tab to any dot for detail, and select it to open that state's Corporate Taxes page.
Corporate Taxes
#50 1.33
- Delaware
- Other states, by rank (1st to 50th)
- 50-state median
Corporate Taxes Ranking Changes, 2020–2027
#50 in 2027 · unchanged from 2020Delaware ranked 50th on Corporate Taxes in 2020 and ranks 50th in 2027, no net change. The axis is zoomed to the state's range. Ranks for 2020 through 2026 are backcast under the current methodology.
Ranks and Scores on Corporate Taxes
Every state's rank and score on Corporate Taxes in 2026 and 2027, with the change in rank, and its overall rank. A rank of 1 is best. The District of Columbia's ranks carry an asterisk because they do not affect the states' ranks, and DC stays at the bottom of the table.
See the Corporate Taxes Map for All States
| State | 2026 Rank | 2026 Score | 2027 Rank | 2027 Score | Rank Change | Overall Rank |
|---|---|---|---|---|---|---|
 South Dakota | 1 | 10.00 | 1 | 10.00 | No change since 2026 | 2 |
 Wyoming | 1 | 10.00 | 1 | 10.00 | No change since 2026 | 1 |
 Missouri | 4 | 5.95 | 3 | 6.17 | Up 1 place since 2026 | 9 |
 North Carolina | 3 | 6.09 | 4 | 5.97 | Down 1 place since 2026 | 11 |
 Oklahoma | 5 | 5.90 | 5 | 5.95 | No change since 2026 | 15 |
 Mississippi | 6 | 5.86 | 6 | 5.84 | No change since 2026 | 27 |
 North Dakota | 12 | 5.55 | 7 | 5.77 | Up 5 places since 2026 | 12 |
 Utah | 15 | 5.49 | 8 | 5.72 | Up 7 places since 2026 | 10 |
 Nebraska | 13 | 5.54 | 9 | 5.72 | Up 4 places since 2026 | 16 |
 Louisiana | 9 | 5.69 | 10 | 5.68 | Down 1 place since 2026 | 23 |
 Indiana | 7 | 5.79 | 11 | 5.64 | Down 4 places since 2026 | 14 |
 Colorado | 18 | 5.41 | 12 | 5.63 | Up 6 places since 2026 | 33 |
 Alabama | 14 | 5.53 | 13 | 5.62 | Up 1 place since 2026 | 35 |
 New Mexico | 21 | 5.37 | 14 | 5.60 | Up 7 places since 2026 | 28 |
 Kansas | 22 | 5.35 | 15 | 5.58 | Up 7 places since 2026 | 19 |
 Georgia | 8 | 5.71 | 16 | 5.57 | Down 8 places since 2026 | 24 |
 Iowa | 25 | 5.31 | 17 | 5.54 | Up 8 places since 2026 | 18 |
 Montana | 26 | 5.27 | 18 | 5.50 | Up 8 places since 2026 | 7 |
 Arkansas | 10 | 5.65 | 19 | 5.48 | Down 9 places since 2026 | 32 |
 Arizona | 16 | 5.47 | 20 | 5.45 | Down 4 places since 2026 | 17 |
 South Carolina | 11 | 5.59 | 21 | 5.40 | Down 10 places since 2026 | 34 |
 Idaho | 23 | 5.35 | 22 | 5.33 | Up 1 place since 2026 | 13 |
 West Virginia | 30 | 5.10 | 23 | 5.33 | Up 7 places since 2026 | 29 |
 Virginia | 17 | 5.44 | 24 | 5.28 | Down 7 places since 2026 | 31 |
 Florida | 19 | 5.41 | 25 | 5.25 | Down 6 places since 2026 | 4 |
 Michigan | 24 | 5.33 | 26 | 5.25 | Down 2 places since 2026 | 25 |
 Kentucky | 20 | 5.39 | 27 | 5.23 | Down 7 places since 2026 | 26 |
 Wisconsin | 27 | 5.21 | 28 | 5.06 | Down 1 place since 2026 | 20 |
 Hawaii | 28 | 5.21 | 29 | 5.05 | Down 1 place since 2026 | 43 |
 Connecticut | 31 | 5.02 | 30 | 5.01 | Up 1 place since 2026 | 46 |
 New York | 29 | 5.15 | 31 | 4.99 | Down 2 places since 2026 | 50 |
 Massachusetts | 33 | 4.94 | 32 | 4.93 | Up 1 place since 2026 | 45 |
 Alaska | 40 | 4.66 | 33 | 4.90 | Up 7 places since 2026 | 3 |
 Maryland | 37 | 4.79 | 34 | 4.87 | Up 3 places since 2026 | 44 |
 Pennsylvania | 34 | 4.90 | 35 | 4.84 | Down 1 place since 2026 | 30 |
 Nevada | 36 | 4.82 | 36 | 4.83 | No change since 2026 | 21 |
 Rhode Island | 32 | 4.96 | 37 | 4.80 | Down 5 places since 2026 | 39 |
 New Hampshire | 35 | 4.87 | 38 | 4.79 | Down 3 places since 2026 | 6 |
 California | 38 | 4.78 | 39 | 4.63 | Down 1 place since 2026 | 49 |
 Vermont | 39 | 4.71 | 40 | 4.55 | Down 1 place since 2026 | 42 |
 Minnesota | 42 | 4.47 | 41 | 4.49 | Up 1 place since 2026 | 41 |
 Maine | 41 | 4.63 | 42 | 4.47 | Down 1 place since 2026 | 40 |
 Illinois | 43 | 4.46 | 43 | 4.46 | No change since 2026 | 38 |
 New Jersey | 44 | 4.43 | 44 | 4.44 | No change since 2026 | 48 |
 Ohio | 45 | 4.21 | 45 | 4.22 | No change since 2026 | 36 |
 Texas | 46 | 4.07 | 46 | 4.13 | No change since 2026 | 5 |
 Washington | 47 | 3.89 | 47 | 3.90 | No change since 2026 | 47 |
 Tennessee | 48 | 3.64 | 48 | 3.44 | No change since 2026 | 8 |
 Oregon | 49 | 2.28 | 49 | 2.36 | No change since 2026 | 37 |
| Delaware | 50 | 1.37 | 50 | 1.33 | No change since 2026 | 22 |
 District of Columbia | 34* | 4.92 | 39* | 4.76 | — | 47* |
*DC's rank does not affect the states' ranks.
Delaware and Its Neighbors on Corporate Taxes
#50 on Corporate TaxesDelaware borders 3 states and ranks 50th on Corporate Taxes; every one of them ranks higher.
- Maryland #34 Score 4.87 16 places better
- Pennsylvania #35 Score 4.84 15 places better
- New Jersey #44 Score 4.44 6 places better
- Delaware #50 Score 1.33 This state
What's in This Component
The corporate tax component measures the impact of states’ major taxes on business activities, both corporate income and gross receipts taxes.
Each component is built from two equally weighted parts, called subindices: one measures the tax rates and the other the tax base, meaning what the tax applies to. Each subindex is made up of one or more variables.
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Rate Subindex
The corporate tax rate subindex is designed to gauge how a state’s top marginal corporate income tax rate, bracket structure, and gross receipts rate affect its competitiveness compared to other states, as the extent of taxation can affect a business’s level of economic activity within a state. Two states levy neither a corporate income tax nor a gross receipts tax: South Dakota and Wyoming. These states automatically score a perfect 10 on this subindex.
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Base Subindex
This subindex measures the economic impact of each state’s definition of what should be subject to corporate taxation. Four criteria measure the competitiveness of each state’s corporate tax base, and each is given a different weight: the availability of certain tax credits (15 percent), the ability of taxpayers to deduct net operating losses (20 percent), the availability of deductions for capital investment and foreign income (45 percent), and a host of smaller tax base issues that combine to make up the rest of the corporate tax base subindex (20 percent).
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What This Component Includes
The variables behind it, grouped as in the report's tables:
- Corporate Income Tax Rates
- Tax Credits and Gross Receipts Deductions
- Net Operating Losses
- Treatment of Capital Investment
- Other Corporate Base Variables
- Other Corporate Variables
How the Score Is Built
Each part is scored from 0 to 10, with 10 the most competitive. Rank is among the 50 states.
| Part | Score | Rank |
|---|---|---|
| Top corporate income tax rate | 2.95 | 44 |
| Gross receipts tax rate | 0.01 | 2 |
| Number of brackets | 10.00 | 1 |
| Rate Subindex | 1.85 | 50 |
| Tax credits | 0.00 | 25 |
| Gross receipts tax base | 0.00 | 46 |
| Net operating loss carryback years | 0.00 | 12 |
| Net operating loss carryforward years | 10.00 | 1 |
| Net operating loss carryback caps | 0.00 | 10 |
| Net operating loss carryforward caps | 8.00 | 26 |
| Net operating loss deductions | 7.20 | 18 |
| Treatment of capital investment | 2.40 | 35 |
| Other base rules | 8.13 | 23 |
| Base Subindex | 2.07 | 50 |
| Corporate Taxes Score | 1.96 | 50 |
Tax Data Explorer
Every corporate taxes variable behind Delaware's 2027 scores, grouped by the report's tables, as of July 1, 2026. Its bordering states are shown alongside to start. Search the variables and values, or add up to 4 states to compare side by side.
31 data points · Shaded values differ from Delaware
Corporate Income Tax Rates
| Variable | Delaware | Maryland | New Jersey | Pennsylvania |
|---|---|---|---|---|
| Bracket 1 | 8.7% > $0 | 8.25% > $0 (differs) | 6.5% > $0 (differs) | 7.49% > $0 (differs) |
| Bracket 2 | n.a. | n.a. | 7.5% > $50,000 (differs) | n.a. |
| Bracket 3 | n.a. | n.a. | 9.0% > $100,000 (differs) | n.a. |
| Bracket 4 | n.a. | n.a. | 11.5% > $10,000,000 (differs) | n.a. |
| Gross Receipts Tax | Yes | No (differs) | No (differs) | No (differs) |
| Gross Receipts Tax Minimum Rate | 0.0945% | n.a. (differs) | n.a. (differs) | n.a. (differs) |
| Gross Receipts Tax Maximum Rate | 0.7468% | n.a. (differs) | n.a. (differs) | n.a. (differs) |
| Gross Receipts Tax Rate Used in the Index | 0.7468% | n.a. (differs) | n.a. (differs) | n.a. (differs) |
Tax Credits and Gross Receipts Deductions
| Variable | Delaware | Maryland | New Jersey | Pennsylvania |
|---|---|---|---|---|
| Job Credits | Yes | Yes | Yes | Yes |
| Research and Development Credits | Yes | Yes | Yes | Yes |
| Investment Credits | Yes | No (differs) | Yes | Yes |
| Compensation Expenses Deductible | No | n.a. (differs) | n.a. (differs) | n.a. (differs) |
| Cost of Goods Sold Deductible | No | n.a. (differs) | n.a. (differs) | n.a. (differs) |
Net Operating Losses
| Variable | Delaware | Maryland | New Jersey | Pennsylvania |
|---|---|---|---|---|
| Conforms to Federal NOL Treatment | Yes | Yes | No (differs) | No (differs) |
| Carryback (Years) | Conforms to federal treatment | Conforms to federal treatment | 0 (differs) | 0 (differs) |
| Carryback Cap | Conforms to federal treatment | Conforms to federal treatment | $0 (differs) | $0 (differs) |
| Carryforward (Years) | Conforms to federal treatment | Conforms to federal treatment | 20 (differs) | 20 (differs) |
| Carryforward Cap | Conforms to federal treatment | Conforms to federal treatment | 80% (differs) | 50% of Liability (differs) |
Treatment of Capital Investment
| Variable | Delaware | Maryland | New Jersey | Pennsylvania |
|---|---|---|---|---|
| Section 168(k) Expensing | 20% | 0% (differs) | 0% (differs) | 0% (differs) |
| Conforms to Section 163(j) Limitation | Yes | Yes | Yes | Yes |
| GILTI Inclusion | 60% Inclusion | 50% Inclusion (differs) | 5% Inclusion (differs) | Decouples (differs) |
| Section 174 Expensing | Yes | Yes | Yes | No (differs) |
| Section 168(n) Expensing | No | No | Yes (differs) | No |
Other Corporate Base Variables
| Variable | Delaware | Maryland | New Jersey | Pennsylvania |
|---|---|---|---|---|
| Federal Income Used as State Tax Base | Yes | Yes | Yes | Yes |
| Conformity Status | Rolling | Rolling | Rolling | Rolling |
| Allows Federal ACRS or MACRS Depreciation | Yes | Yes | Yes | Yes |
| Allows Federal Depletion | Partial | Partial | Yes (differs) | Yes (differs) |
| Throwback Rule | No | No | No | No |
| Foreign Tax Deductibility | No | Yes (differs) | No | No |
| Corporate AMT | No | No | No | No |
| Brackets Indexed for Inflation | Flat CIT | Flat CIT | No (differs) | Flat CIT |
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About the Authors
Janelle Fritts is a Senior Policy Analyst with the Tax Foundation’s Center for State Tax Policy. She is the lead researcher on the annual State Tax Competitiveness Index and serves as a resource to policymakers in their efforts to modernize and improve the structures of their state tax codes. Her work has been cited in The New York Times, the Associated Press, Bloomberg, and numerous state media outlets across the country.
Jared Walczak is a Senior Fellow at the Tax Foundation, where he spent five years as Vice President of State Projects, and president of Walczak Policy Consulting.
Nicole Fox is a Policy Analyst with the Center for State Tax Policy at the Tax Foundation, where she serves as a resource to policymakers in their efforts to modernize and improve the structure of their state tax codes.
Katherine Loughead is the Vice President of State Tax Policy at the Tax Foundation, where she oversees the state tax policy team’s research agenda and serves as a resource to policymakers in their efforts to modernize and improve the structure of their state tax codes.
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Sarah Wilbur is Communications Manager at the Tax Foundation where she advances the organization’s institutional reach by developing its corporate communications and media programs.
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Jesse Solis is Vice President of Communications at the Tax Foundation, where he leads the communications team and works to build coverage of Tax Foundation’s experts and their work across the globe. He joined the team in 2021 as Communications Manager and became Communications Director in 2024.