Highest Marginal Corporate Net Income Tax Rate

PA's Rank Stays At th Compared To

What Is This

Highest marginal tax rate of state corporate net income tax. For tax year 2020. Compiled by the Tax Foundation.

Why It's Important

Thought by many experts in business and academics to impact the willingness of business to invest in a state. This tax is strictly a state-levied tax on corporate income ignoring any federal or local income taxes or any other state fees. This measure reports the highest marginal tax rate for each state.

Trend

The trend in both the median and Pennsylvania-specific highest marginal corporate net income tax rate has remained very stable, with the median at 6.5% and Pennsylvania’s rate consistently at 9.99% since 2009. F0r 2020, nine states including Arizona, Colorado, Florida, Kentucky, Mississippi, Missouri, North Carolina, North Dakota, South Carolina, and Utah — have top rates at or below 5 percent, with North Carolina topping the list at 2.5%. Missouri had the largest drop in tax rates from 6.25% to 4%.

Source

“State Corporate Income Tax Rates and Brackets”, Federation of Tax Administrators, 2020 | Visit website