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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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