Center for State Tax Policy

Corporate Income Taxes

In addition to the federal corporate income tax rate, many U.S. 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. According to a recent Federal Reserve study, state corporate taxes hurt entrepreneurship. 

State Corporate Income Tax Rates and Brackets

Corporate Tax Rates by Country

Related Articles

Pennsylvania Governor Proposes Spending Boost, Broader Sales Tax, Heavier Business Taxes

February 25, 2010

The Importance of Tax Deferral and A Lower Corporate Tax Rate

February 19, 2010

Repeal of Oregon Tax Increases Would Improve State Business Tax Climate

January 7, 2010

Ohio’s Poor Tax Climate at the Heart of the State’s Economic and Fiscal Woes

January 7, 2010

Ohio’s High Tax Burden, Poor Business Tax Climate Hurting Economy

January 7, 2010

Oregon Referendum Could Reinstate Higher Income Tax Rates

January 7, 2010

Slideshow: Ohio’s Tax Climate

January 7, 2010

Pennsylvania Tax System to Blame for Job Losses, Out-Migration

December 3, 2009

Pennsylvania’s Tax System–Not Weak Economy–Responsible for Job Losses and Out-Migration

December 2, 2009

National and State Corporate Income Tax Rates, U.S. States and OECD Countries, 2009

December 2, 2009

Taxes, Competitiveness and the New Hampshire Business Climate (Testimony before the New Hampshire Legislature)

October 21, 2009

Where Do State and Local Governments Get Their Tax Revenue?

October 9, 2009

Governor Granholm’s Energetic but Futile Effort to Buy Jobs

October 6, 2009

Which States Are Best for Business?

September 22, 2009

Corporate Taxes and Wages: Evidence from the 50 States

August 6, 2009

U.S. Lags while Competitors Accelerate Corporate Income Tax Reform

August 5, 2009

Graph: U.S. Business Tax Rates Fall Behind By Standing Still (Corporate Tax Rates in U.S. vs. OECD Average, 1981-2009)

August 5, 2009

OECD Nations Continue Cutting Corporate Tax Rates While U.S. Stands Still (Federal Plus Provincial/State Corporate Tax Rates for OECD Countries, 2008-2009)

August 3, 2009

The Corporate Income Tax and Workers’ Wages: New Evidence from the 50 States

August 3, 2009

New Study: State Corporate Income Taxes Hurt Workers’ Wages

August 3, 2009