Center for State Tax Policy

Corporate Income Taxes

The federal corporate income tax was first instituted in 1909 when income above $5,000 was subjected to a one percent tax rate. Since then it has changed approximately 35 times, with the current top rate at 35 percent.

Additionally, many states levy corporate income taxes of their own. Economists have long understood that corporate income taxes are double taxes, since the same income is taxed once as profit, and once as individual income when distributed as dividends to shareholders.

Contrary to popular misconception, the ultimate burden of corporate income taxes doesn’t fall on corporations, but is instead borne by workers, shareholders and consumers.


Featured Research

State Corporate Income Tax Rates and Brackets for 2018

February 7, 2018

New Federal Reserve Paper: State Corporate Taxes Hurt Entrepreneurship

January 16, 2018

Trends in State Tax Policy, 2018

December 14, 2017

2018 State Business Tax Climate Index

October 17, 2017

Unpacking the State and Local Tax Toolkit: Sources of State and Local Tax Collections

June 20, 2017

Federal Tax Reform: The Impact on States

March 8, 2017


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