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U.S. State Maximum Personal and Corporate Tax Rates
1
—2014
Personal Tax Rate
Corporate Tax Rate
Alabama
5.00%
6.50%
Alaska
no income tax
9.40
Arizona
4.54
6.50
Arkansas
7.00
6.50
California
13.30
8.84
Colorado
4.63
4.63
Connecticut
6.70
7.50
Delaware
6.60
8.70
District of Columbia
8.95
9.98
Florida
no income tax
5.50
Georgia
6.00
6.00
Hawaii
11.00
6.40
Idaho
7.40
7.40
Illinois
5.00
7% + 2.5% replacement tax
Indiana
3.40
7.50/7.00
2
Iowa
8.98
12.00
Notes
(1) These rates should only be used for general information purposes as most states have
graduated rates that apply at lower levels of taxable income. State tax rates apply to
taxable income as determined for state tax purposes. Many states also impose an
alternative minimum tax, a gross receipts tax, a capital tax or an intangibles tax. Most
states tax capital gains at different rates than ordinary income for individuals but not for
corporations.
(2) Indiana’s corporate tax rate of 7.5% will decrease to 7% effective July 1, 2014 and further
decrease to 6.5% effective July 1, 2015.
(3) Kansas applies the 3% surtax on taxes payable that exceed $50,000.
(4) Some states, such as Ohio and Washington, which do not impose a corporate income tax
do impose a tax on business activity in the state, however based upon a measure (usually
gross receipts) other than corporate net income.
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