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 readNew Jersey‘s tax system ranks 49th overall on the 2025 State Tax Competitiveness Index. New Jersey levies all major categories of tax, typically at high rates and significant levels of complexity.
In 1976, the Garden State enacted an individual income tax, in part to provide relief from rising property taxes. Now, individual taxpayers are subject to eight individual income tax brackets, a top marginal rate of 10.75 percent, and the highest per capita property tax collections in the nation. Moreover, individual taxpayers are subject to a marriage penalty. New Jersey property taxpayers also pay the third-highest effective rate in the country. The state repealed the estate tax but continues to levy the inheritance tax.
Corporations face a top marginal tax rate of 11.5 percent, taking into account a surtax on large businesses known as the Corporate Transit Fee. Recently, however, New Jersey has largely removed global intangible low-taxed income (GILTI) from its tax base, and tangible personal property is exempt from property taxation. Additionally, the state conforms to the federal limitation of 80 percent net operating loss carryforwards but fails to conform to the unlimited recovery period included in the federal law.
Category | Rank | Rank Change | Score |
---|---|---|---|
Overall | 49 | 0 | 3.69 |
Corporate Taxes | 44 | 0 | 4.29 |
Individual Income Taxes | 48 | 0 | 2.57 |
Sales Taxes | 35 | -3 | 4.37 |
Property Taxes | 43 | -1 | 4.16 |
Unemployment Insurance Taxes | 50 | 2 | 3.66 |
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 readFrom 2021-2024, within the span of 3.5 years, more states enacted laws converting graduated-rate individual income tax structures into single-rate income tax structures than did so in the whole 108-year history of state income taxation up until that point.
10 min readAmericans were on the move in 2024, and many chose low-tax states over high-tax ones.
6 min read