| Tax | # of | Bank | Federal Tax | ||||||
|---|---|---|---|---|---|---|---|---|---|
| State | Rates | Tax Brackets | Brackets | Tax Rates | Deductible | ||||
| ALABAMA | 5.0 | ----Flat Rate---- | 1 | 6.0 | |||||
| ALASKA | 1.0 - 9.4 | 10,000 | 90,000 | 10 | 1.0 - 9.4 | ||||
| ARIZONA | 9.0 (b) | ----Flat Rate---- | 1 | 9.0 (b) | |||||
| ARKANSAS | 1.0 - 6.5 | 3,000 | 100,000 | 6 | 1.0 - 6.5 | ||||
| CALIFORNIA | 8.84 (c) | ----Flat Rate---- | 1 | 10.84 (c) | |||||
| COLORADO | 5.0 | ----Flat Rate---- | 1 | 5.0 | |||||
| CONNECTICUT | 10.5 (d) | ----Flat Rate---- | 1 | 10.5 (d) | |||||
| DELAWARE | 8.7 | ----Flat Rate---- | 1 | 8.7-2.7 (e) | |||||
| FLORIDA | 5.5 (f) | ----Flat Rate---- | 1 | 5.5 (f) | |||||
| GEORGIA | 6.0 | ----Flat Rate---- | 1 | 6.0 | |||||
| HAWAII | 4.4 - 6.4 (g) | 25,000 | 100,000 | 3 | 7.92 (g) | ||||
| IDAHO | 8.0 (h) | ----Flat Rate---- | 1 | 8.0 (h) | |||||
| ILLINOIS | 7.3 (i) | ----Flat Rate---- | 1 | 7.3 (i) | |||||
| INDIANA | 7.9 (j) | ----Flat Rate---- | 1 | 7.9 (j) | |||||
| IOWA | 6.0 - 12.0 | 25,000 | 250,000 | 4 | 5.0 | ||||
| KANSAS | 4.0 (l) | ----Flat Rate---- | 1 | 4.5 (l) | |||||
| KENTUCKY | 4.0 - 8.25 | 25,000 | 250,000 | 5 | --- (a) | ||||
| LOUISIANA | 4.0 - 8.0 | 25,000 | 200,000 | 5 | --- (a) | ||||
| MAINE | 3.5 - 8.93 (m) | 25,000 | 250,000 | 4 | 1.0 | ||||
| MARYLAND | 7.0 | ----Flat Rate---- | 1 | 7.0 | |||||
| MASSACHUSETTS | 9.5 (n) | ----Flat Rate---- | 1 | 11.72 (n) | |||||
| MINNESOTA | 9.8 (o) | ----Flat Rate---- | 1 | 9.8 (o) | |||||
| MISSISSIPPI | 3.0 - 5.0 | 5,000 | 10,000 | 3 | --- (a) | ||||
| MISSOURI | 6.25 | ----Flat Rate---- | 3 | 7.0 | |||||
| MONTANA | 6.75 (p) | ----Flat Rate---- | 1 | 6.75 (p) | |||||
| NEBRASKA | 5.58 - 7.81 | 50,000 | 2 | --- (a) | |||||
| NEW HAMPSHIRE | 7.0 (q) | ----Flat Rate---- | 1 | 7.0 (q) | |||||
| NEW JERSEY | 9 (r) | ----Flat Rate---- | 1 | 9 (r) | |||||
| NEW MEXICO | 4.8 - 7.6 | 500,000 | 1 million | 3 | 4.8 - 7.6 | ||||
| NEW YORK | 9.0 (t) | ----Flat Rate---- | 1 | 9.0 (t) | |||||
| NORTH CAROLINA | 7.5 (u) | ----Flat Rate---- | 1 | 7.5 (u) | |||||
| NORTH DAKOTA | 3.0 - 10.5 (v) | 3,000 | 50,000 | 6 | 7.0 (v) | ||||
| OHIO | 5.1 - 8.9 (w) | 50,000 | 2 | --- (w) | |||||
| OKLAHOMA | 6.0 | ----Flat Rate---- | 1 | 6.0 | |||||
| OREGON | 6.6 (b) | ----Flat Rate---- | 1 | 6.6 (b) | |||||
| PENNSYLVANIA | 9.99 (s) | ----Flat Rate---- | 1 | --- (a) | |||||
| RHODE ISLAND | 9.0 | ----Flat Rate---- | 1 | 8.0 (x) | |||||
| SOUTH CAROLINA | 5.0 | ----Flat Rate---- | 1 | 4.5 (y) | |||||
| SOUTH DAKOTA | --- | 6.0-1.0% (b) | |||||||
| TENNESSEE | 6.0 | ----Flat Rate---- | 1 | 6.0 | |||||
| UTAH | 5.0 (b) | ----Flat Rate---- | 5.0 (b) | ||||||
| VERMONT | 5.5 - 8.25 (b) | 10,000 | 250,000 | 4 | 5.5 - 8.25 (b) | ||||
| VIRGINIA | 6.0 | ----Flat Rate---- | 1 | 6.0 (z) | |||||
| WEST VIRGINIA | 9.0 | ----Flat Rate---- | 1 | 9.0 | |||||
| WISCONSIN | 7.9 (aa) | ----Flat Rate---- | 1 | 7.9 | |||||
| DIST. OF COLUMBIA | 9.975 (bb) | ----Flat Rate---- | 9.975 (bb) | ||||||
Source: Compiled by FTA from various sources
Note: Michigan imposes a single business tax (sometimes described as a business activities tax or value added tax) of 2.3% on the sum of federal taxable income of the business, compensation paid to employees, dividends, interest, royalties paid and other items. Similarly, Texas imposes a franchise tax of 4.5% of earned surplus. Nevada, Washington, and Wyoming do not have state corporate income taxes.
(a) Rates listed include the corporate tax rate applied to financial institutions or excise taxes based on income. Some states have other taxes based upon the value of deposits or shares.
(b) Minimum tax is $50 in Arizona, $10 in Oregon, $250 in Rhode Island, $200 per location in South Dakota (banks), $100 in Utah, $150 in Vermont,
(c) Minimum tax is $800. The tax rate on S-Corporations is 1.5% (4.67% for banks).
(d) Or 3.1 mills per dollar of capital stock and surplus (maximum tax $1 million) or $250. Tax rate is scheduled to fall to 10.5% in 1997, 9.5% in 1998, 8.5% in 1999, and 7.5% after 1999.
(e) The marginal rate decreases over 4 brackets ranging from $20 to $30 million in taxable income. Building and loan associations are taxed at a flat 8.7%.
(f) Or 3.3% Alternative Minimum Tax. An exemption of $5,000 is allowed.
(g) Capital gains are taxed at 4%.
(h) Minimum tax is $20. An additional tax of $10 is imposed on each return.
(i) Includes a 2.5% personal property replacement tax.
(j) Consists of 3.4% on income from sources within the state plus a 4.5% supplemental income tax.
(k) Fifty percent of the federal income tax is deductible.
(l) Plus a surtax of 3.35% (2.125% for banks) taxable income in excess of $50,000 ($25,000).
(m) Or a 27% tax on Federal Alternative Minimum Taxable Income.
(n) Rate includes a 14% surtax, as does the following: an additional tax of $2.60 per $1,000 on taxable tangible property (or net worth allocable to state, for intangible property corporations); minimum tax of $456. The Bank tax rate will decrease to 11.32% in 1997, 10.91% in 1998, and 10.50% after 1998.
(o) Plus a 5.8% tax on any Alternative Minimum Taxable Income over the base tax.
(p) A 7% tax on taxpayers using water's edge combination. Minimum tax is $50; for small business corporations, $10.
(q) Plus a 0.25 percent tax on the enterprise base (total compensation, interest and dividends paid). Business profits tax imposed on both corporations and unincorporated associations.
(r) Minimum tax $200 . Tax rate is 7.5% if entire net income is under $100,000. S-corporations are taxed at 2.63%, the rate is 1.13% if entire net income is under $100,000. S-corporations income that is subject to federal tax is taxed at the rate applicable as if it were an ordinary corporation.
(s) Includes a 0.49% surtax, which is being phased out through 1997.
(t) For tax years beginning after June 30, 1996 but before July 1, 1997, a 2.5% surcharge is applied. Or 1.78 (0.1 for banks) mills per dollar of capital (up to $350,000; or 5% (3% for banks) of the minimum taxable income; or a minimum of $1,500 to $325 depending on payroll size ($250 plus 2.5% surtax for banks); if any of these is greater than the tax computed on net income. An addition tax of 0.9 mills per dollar of subsidiary capital is imposed on corporations.
(u) The tax rate is 7.25% for tax years beginning in 1998, 7.0% for 1999, and 6.9% for tax years beginning after 1999. Financial institutions are also subject to a Franchise tax equal to $30 per one million in assets.
(v) Or 6% Alternative Minimum Tax. The bank tax rate includes a 2% privilege tax. Minimum tax is $50.
(w) Or 5.82 mills time the value of the taxpayer's issued and outstanding share of stock; minimum tax $50. An additional litter tax is imposed equal to 0.11% on the first $25,000 of taxable income, 0.22% on income over $25,000; or 0.14 mills on net worth. Corporations manufacturing or selling litter stream products are subject to an additional 0.22% tax on income over $25,000 or 0.14 mills on net worth.
(x) For banks, the alternative tax is $2.50 per $10,000 of capital stock ($100 minimum). Rate will increse to 9% for tax years ending on or after July 1, 1996.
(y) Savings and Loans are taxed at a 6% rate.
(z) State and national banks subject to the state's franchise tax on net capital is exempt from the income tax.
(aa) Plus a surtax set annually by the Dept. of Revenue to finance a special recycling fund.