Icon for Top Marginal Corporate Income Tax Rate

Top Marginal Corporate Income Tax Rate

Description

This variable includes local taxes, if any, and includes the effect of federal deductibility, if allowed. A state’s largest city was used as a proxy for local tax rates. In the case of gross receipts or business franchise taxes, an effective tax rate was approximated using NIPA profits, rental and proprietor’s income and gross domestic product data. The Texas franchise tax is not a traditional gross receipts tax, but is instead a “margin” tax with more than one rate. A margin tax creates less distortion than does a gross receipts tax. Therefore, what we believe is the best measurement for an effective corporate tax rate for Texas is to average the 4.5176 percent measure we would use if the tax was a gross receipts tax and the 0.75 percent highest rate on its margin tax, leading to our measure of 2.63 percent. Data were drawn from Tax Analysts, Federation of Tax Administrators, individual state tax return forms and the Bureau of Economic Analysis. Tax rates are as of March 25, 2018.

Current (2018)

Current values and ranks for the 2018 edition of Rich States, Poor States.
State Value Rank
5.14% 13th
9.40% 43rd
4.90% 9th
6.50% 21st
8.84% 40th
4.63% 8th
8.25% 37th
11.75% 48th
5.50% 14th
6.38% 19th
6.40% 20th
6.93% 27th
9.50% 44th
6.00% 16th
11.64% 47th
7.00% 28th
8.20% 35th
6.32% 18th
8.93% 41st
8.25% 37th
8.00% 33rd
8.00% 33rd
9.80% 45th
5.00% 10th
6.59% 24th
6.75% 25th
7.81% 31st
0.64% 3rd
8.20% 36th
9.00% 42nd
5.90% 15th
17.21% 50th
3.00% 5th
4.31% 7th
3.67% 6th
6.00% 16th
11.25% 46th
16.98% 49th
7.00% 28th
5.00% 10th
0.00% 1st
6.50% 21st
2.63% 4th
5.00% 10th
8.50% 39th
7.63% 30th
6.78% 26th
6.50% 21st
7.90% 32nd
0.00% 1st

Historical Ranks

Historical state ranks for Top Marginal Corporate Income Tax Rate across editions of the Rich States, Poor States.
State 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
5th 5th 4th 5th 6th 6th 6th 6th 7th 7th 13th
43rd 43rd 43rd 43rd 43rd 43rd 43rd 44th 44th 44th 43rd
23rd 23rd 24th 24th 23rd 23rd 21st 15th 14th 10th 9th
19th 19th 20th 20th 19th 19th 21st 22nd 21st 22nd 21st
36th 37th 38th 38th 38th 38th 38th 40th 40th 40th 40th
8th 7th 6th 6th 8th 7th 8th 8th 9th 9th 8th
27th 26th 27th 26th 40th 40th 40th 42nd 42nd 42nd 37th
34th 36th 47th 47th 47th 47th 47th 47th 48th 48th 48th
13th 13th 13th 13th 13th 13th 13th 14th 14th 15th 14th
15th 15th 16th 16th 15th 14th 14th 15th 16th 16th 19th
18th 18th 19th 19th 18th 18th 19th 21st 19th 21st 20th
29th 27th 28th 27th 26th 26th 28th 30th 29th 29th 27th
25th 24th 26th 44th 44th 44th 44th 32nd 31st 31st 44th
33rd 33rd 34th 34th 35th 32nd 29th 27th 21st 20th 16th
46th 46th 46th 46th 46th 46th 46th 46th 46th 46th 47th
26th 25th 25th 25th 25th 24th 26th 27th 27th 27th 28th
41st 31st 32nd 31st 32nd 14th 14th 15th 36th 36th 35th
12th 12th 11th 11th 12th 12th 12th 13th 13th 14th 18th
38th 38th 39th 39th 39th 39th 39th 41st 41st 41st 41st
24th 32nd 33rd 32nd 34th 35th 35th 37th 37th 38th 37th
44th 44th 44th 32nd 31st 32nd 33rd 35th 34th 34th 33rd
28th 41st 42nd 42nd 24th 32nd 33rd 35th 34th 34th 33rd
45th 45th 45th 45th 45th 45th 45th 45th 45th 45th 45th
9th 8th 7th 7th 9th 8th 9th 9th 10th 11th 10th
14th 14th 15th 15th 14th 17th 18th 19th 18th 18th 24th
21st 21st 22nd 22nd 21st 21st 25th 25th 26th 26th 25th
31st 29th 30th 29th 29th 29th 31st 33rd 32nd 32nd 31st
1st 1st 1st 1st 1st 1st 1st 1st 3rd 3rd 3rd
42nd 42nd 34th 34th 35th 36th 36th 38th 38th 37th 36th
39th 39th 40th 40th 40th 40th 40th 42nd 42nd 42nd 42nd
29th 27th 28th 27th 26th 28th 27th 26th 25th 19th 15th
50th 50th 50th 50th 49th 50th 50th 50th 50th 50th 50th
22nd 22nd 23rd 23rd 22nd 22nd 14th 9th 6th 5th 5th
7th 5th 4th 4th 4th 11th 7th 7th 8th 8th 7th
48th 48th 10th 10th 5th 5th 5th 5th 5th 6th 6th
15th 15th 16th 16th 15th 14th 14th 15th 16th 16th 16th
47th 47th 48th 48th 48th 48th 48th 48th 47th 47th 46th
49th 49th 49th 49th 50th 49th 49th 49th 49th 49th 49th
39th 39th 40th 40th 40th 40th 40th 27th 27th 27th 28th
9th 8th 7th 7th 9th 8th 9th 9th 10th 11th 10th
1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st
19th 19th 20th 20th 19th 19th 21st 22nd 21st 22nd 21st
6th 8th 14th 14th 7th 4th 4th 4th 4th 4th 4th
9th 8th 7th 7th 9th 8th 9th 9th 10th 11th 10th
37th 33rd 34th 34th 35th 36th 36th 38th 38th 39th 39th
15th 15th 16th 16th 15th 27th 30th 31st 30th 30th 30th
1st 1st 12th 12th 33rd 31st 20th 20th 20th 25th 26th
35th 33rd 34th 34th 28th 34th 21st 22nd 21st 22nd 21st
32nd 30th 31st 30th 30th 30th 32nd 34th 33rd 33rd 32nd
1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st

Historical Values

Historical values for Top Marginal Corporate Income Tax Rate. The years listed correspond to the actual data years, not necessarily the publication of Rich States, Poor States.
State 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
4.23% 4.23% 4.23% 4.23% 4.23% 4.23% 4.23% 4.23% 4.23% 4.23% 5.14%
9.40% 9.40% 9.40% 9.40% 9.40% 9.40% 9.40% 9.40% 9.40% 9.40% 9.40%
6.97% 6.97% 6.97% 6.97% 6.97% 6.97% 6.50% 6.00% 5.50% 4.90% 4.90%
6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50%
8.84% 8.84% 8.84% 8.84% 8.84% 8.84% 8.84% 8.84% 8.84% 8.84% 8.84%
4.63% 4.63% 4.63% 4.63% 4.63% 4.63% 4.63% 4.63% 4.63% 4.63% 4.63%
7.50% 7.50% 7.50% 7.50% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 8.25%
8.70% 8.70% 9.98% 9.98% 9.98% 10.49% 10.41% 10.35% 11.66% 11.69% 11.75%
5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50%
6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.38%
6.40% 6.40% 6.40% 6.40% 6.40% 6.40% 6.40% 6.40% 6.40% 6.40% 6.40%
7.60% 7.60% 7.60% 7.60% 7.60% 7.40% 7.40% 7.40% 7.40% 7.40% 6.93%
7.30% 7.30% 7.30% 9.50% 9.50% 9.50% 9.50% 7.75% 7.75% 7.75% 9.50%
8.50% 8.50% 8.50% 8.50% 8.50% 8.00% 7.50% 7.00% 6.50% 6.25% 6.00%
9.90% 9.90% 9.90% 9.90% 9.90% 9.90% 9.90% 9.90% 9.90% 9.90% 11.64%
7.35% 7.35% 7.05% 7.05% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
9.20% 8.20% 8.20% 8.20% 8.20% 6.00% 6.00% 6.00% 8.20% 8.20% 8.20%
5.20% 5.20% 5.20% 5.20% 5.20% 5.20% 5.20% 5.20% 5.20% 5.20% 6.32%
8.93% 8.93% 8.93% 8.93% 8.93% 8.93% 8.93% 8.93% 8.93% 8.93% 8.93%
7.00% 8.30% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25%
9.50% 9.50% 9.50% 8.25% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00%
7.51% 9.01% 9.01% 9.01% 7.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00%
9.80% 9.80% 9.80% 9.80% 9.80% 9.80% 9.80% 9.80% 9.80% 9.80% 9.80%
5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
5.81% 5.81% 5.81% 5.81% 5.81% 6.16% 6.16% 6.16% 6.16% 6.16% 6.59%
6.75% 6.75% 6.75% 6.75% 6.75% 6.75% 6.75% 6.75% 6.75% 6.75% 6.75%
7.81% 7.81% 7.81% 7.81% 7.81% 7.81% 7.81% 7.81% 7.81% 7.81% 7.81%
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.48% 0.49% 0.64%
9.25% 9.25% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.20% 8.20%
9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00%
7.60% 7.60% 7.60% 7.60% 7.60% 7.60% 7.30% 6.90% 6.60% 6.20% 5.90%
17.63% 17.63% 15.95% 15.95% 15.95% 17.16% 17.16% 17.16% 17.01% 17.19% 17.21%
6.90% 6.90% 6.90% 6.90% 6.90% 6.90% 6.00% 5.00% 4.00% 3.00% 3.00%
4.55% 4.23% 4.23% 4.16% 3.35% 5.15% 4.53% 4.53% 4.31% 4.31% 4.31%
10.50% 10.50% 5.14% 5.14% 3.69% 3.65% 3.62% 3.58% 3.62% 3.64% 3.67%
6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00%
10.25% 10.25% 11.55% 11.25% 11.25% 11.25% 11.25% 11.25% 11.25% 11.25% 11.25%
14.29% 13.97% 13.97% 13.97% 17.09% 17.07% 17.05% 17.03% 17.01% 17.02% 16.98%
9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 7.00% 7.00% 7.00% 7.00%
5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50%
4.50% 5.00% 5.56% 5.56% 4.56% 2.72% 2.65% 2.55% 2.53% 2.56% 2.63%
5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
8.90% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50%
6.00% 6.00% 6.00% 6.00% 6.00% 7.60% 7.55% 7.49% 7.55% 7.57% 7.63%
0.00% 0.00% 5.22% 5.22% 8.21% 8.00% 6.45% 6.23% 6.46% 6.56% 6.78%
8.75% 8.50% 8.50% 8.50% 7.75% 7.00% 6.50% 6.50% 6.50% 6.50% 6.50%
7.90% 7.90% 7.90% 7.90% 7.90% 7.90% 7.90% 7.90% 7.90% 7.90% 7.90%
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

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