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50-State Guide to Business Income Tax

Most states tax at least some types of business income derived from the state. In most states, corporations are subject to a corporate income tax while income from “pass-through entities” such as S corporations, limited liability companies (LLCs), partnerships, and sole proprietorships is subject to a state’s tax on personal income. Tax rates for both corporate income and personal income vary widely among states. Corporate rates, which often are flat regardless of the amount of income, generally range from 4% to 9%, and personal rates, which often vary depending on the amount of income, can range from 0% to 9% or more in some states.

Find out the tax rates for business income earned in your state by selecting your state from the list below.

Nolo. (Reviewed 2024). 50-State Guide to Business Income Tax Retrieved 1/30/2024 from Nolo.

More about this Topics

  • Tax Breaks Every Parent Should Know About

  • Deducting Your Property Taxes

  • Tax Court: The Small Case Division

  • Small Business Tax Debts: Dealing With the IRS

  • The Simplified Home Office Deduction

Other Topics

    • Claiming an Unmarried Partner as a Dependent on Your Tax Return
    • Preparing for a Business Audit
    • What are State Business Tax Laws?
    • Seven Steps to Lower Your Taxes
    • IRS Tax Bill Collections: What You Can Do