Every state sets its own taxes. 41 states and the District of Columbia tax personal income. 9 do not: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.
Business taxes vary more. Depending on how the business is set up, a state can tax its profit, charge a minimum or franchise tax, or require an annual report fee. Pick a state to see what applies to you personally and to each business type.
| State | Personal income tax | Business taxes |
|---|---|---|
| Alabama | Yes, 2% to 5% | 6.5% corporate income tax. Income tax returns for every partnership and corporation. Privilege tax on net worth for LLCs and corporations, owed only above $100. $10 corporate annual report fee. |
| Alaska | No | Corporate net income tax from 2% to 9.4%. $100 biennial report and $100 business licence, each paid every two years. |
| Arizona | Yes, 2.5% flat | 4.9% corporate income tax, $50 minimum. $45 corporation annual report fee. No annual report or fee for LLCs. |
| Arkansas | Yes, up to 3.9% | Corporate income tax from 1% to 4.3%. $150 franchise tax for every LLC. Franchise tax on capital stock for corporations. |
| California | Yes, 1% to 12.3%, plus 1% over $1,000,000 | 8.84% corporate tax, 1.5% for S corporations. $800 minimum annual tax for LLCs and corporations. LLC fee on California income from $250,000. |
| Colorado | Yes, 4.4% flat | 4.4% corporate income tax, no minimum. $25 periodic report fee for LLCs, corporations and registered partnerships. |
| Connecticut | Yes, 2% to 6.99% | 7.5% corporation business tax, $250 minimum. Annual report fee of $80 for LLCs, LPs and LLPs, $150 for corporations. Optional pass-through entity tax. |
| Delaware | Yes, up to 6.6% | 8.7% corporate income tax. Franchise tax from $175 for corporations. $300 a year for every LLC and partnership. Business licence from $75 and a gross receipts tax. |
| District of Columbia | Yes, 4% to 10.75% | 8.25% franchise tax on corporations, S corporations included, and on unincorporated businesses, sole proprietors included. $250 minimum. $300 biennial report for LLCs and corporations. |
| Florida | No | 5.5% corporate income tax on Florida income above $50,000. Annual report every year: $138.75 for an LLC, $150 for a corporation. |
| Georgia | Yes, flat 5.19% | 5.19% corporate income tax, plus a net worth tax on corporations. Partnerships and S corporations pay the 5.19% only if they elect to. $50 LLC annual registration. |
| Hawaii | Yes, 1.4% to 11% | General excise tax on gross income for every business, sole proprietors included. Corporate income tax of 4.4% to 6.4%. Annual report from $12.50. |
| Idaho | Yes, flat 5.3% | 5.3% corporate income tax. $20 minimum tax plus $10 building fund tax for every corporation, S corporations included. Annual report free when filed online. |
| Illinois | Yes, flat 4.95% | Replacement tax on the business itself: 1.5% for partnerships and S corporations, 2.5% for corporations, which also pay corporate income tax. $75 LLC annual report. |
| Indiana | Yes, flat 3%, plus county tax of 0.5% to 3% | 4.9% corporate income tax. Business entity report from $32 every two years for LLCs, partnerships and corporations. Composite return required for owners who live elsewhere. |
| Iowa | Yes, flat 3.8% | 5.5% to 7.1% corporate income tax. Income tax returns for partnerships and corporations. $30 biennial report for LLCs and corporations. |
| Kansas | Yes, 5.2% to 5.58% | 3.5% corporate income tax plus a 3% surtax above $50,000. Income tax returns for partnerships and corporations. $53 annual report for LLCs, partnerships and corporations. |
| Kentucky | Yes, flat 4% | 5% corporate income tax. Income tax returns for partnerships and corporations. Limited liability entity tax of at least $175 on LLCs, limited partnerships and corporations. $15 annual report for LLCs. |
| Louisiana | Yes, flat 3% | 5.5% corporate income tax. Income tax returns for partnerships and corporations. Corporation franchise tax on capital, owed for 2025 and then repealed. $25 annual report for LLCs. |
| Maine | Yes, 5.8% to 7.15% | 3.5% to 8.93% corporate income tax. Withholding return for partnerships and S corporations with an owner outside Maine. Annual report from $85 for LLCs, partnerships and corporations. |
| Maryland | Yes, 2% to 6.5%, plus 2.25% to 3.3% county tax | 8.25% corporate income tax. Income tax returns for partnerships and corporations, which pay the tax for owners who live elsewhere. $300 annual report for LLCs, partnerships and corporations. |
| Massachusetts | Yes, 5%, plus a 4% surtax above $1,083,150 | 8% corporate excise, at least $456. $456 minimum excise for S corporations. $500 annual report for LLCs. |
| Michigan | Yes, flat 4.25% | 6% corporate income tax, none under $350,000 of Michigan receipts. $25 LLC annual statement. Optional flow-through entity tax for partnerships and S corporations. |
| Minnesota | Yes, 5.35% to 9.85% | 9.8% corporate franchise tax. A minimum fee for partnerships and corporations, based on Minnesota property, payroll and sales. Free LLC annual renewal. |
| Mississippi | Yes, 0% on the first $10,000, then 4.4% | Corporate income tax up to 5%. Franchise tax on corporate capital above $100,000, gone from January 1, 2028. Free annual report for Mississippi LLCs. |
| Missouri | Yes, 0% to 4.7% | 4% corporate income tax. Corporate registration report from $15 a year. No LLC annual report found in state law. |
| Montana | Yes, 4.7% to 5.9% | 6.75% corporate income tax, $50 minimum. $20 annual report for LLCs, partnerships and corporations. Pass-through businesses must cover owners who live elsewhere. |
| Nebraska | Yes, 2.46% to 5.2% | 5.2% corporate income tax. Occupation tax on corporations, at least $26 every two years. LLC biennial report from $25. |
| Nevada | None | No corporate income tax. State business licence of $200 a year ($500 for corporations), annual list from $150, and a commerce tax on Nevada revenue above $4,000,000. |
| New Hampshire | No | 7.5% business profits tax on every kind of business, sole proprietors included, above a gross income threshold. 0.55% business enterprise tax on wages, interest and dividends paid. Annual report from $100 for LLCs and corporations. |
| New Jersey | Yes, 1.4% to 10.75% | 6.5% to 9% corporation business tax, with a $500 to $2,000 minimum. $150 per owner partnership fee once there are more than two owners. $75 LLC annual report fee. |
| New Mexico | Yes, 1.5% to 5.9% | 5.9% corporate income tax. $50 franchise tax on every corporation, S corporations included. $20 LLC report every three years. |
| New York | Yes, 4% to 10.9% | 6.5% corporate franchise tax, 7.25% above $5,000,000, or a $25 to $200,000 fixed dollar minimum if higher. LLC and LLP annual filing fee from $25. |
| North Carolina | Yes, flat 4.25% | 2.25% corporate income tax for 2025, falling each year. $200 minimum franchise tax on corporations. $200 LLC annual report fee, owed even when the LLC does nothing. |
| North Dakota | Yes, 0% to 2.5% | Corporate income tax from 1.41% to 4.31%. Annual report fee: $50 for an LLC, $25 for partnerships and corporations. |
| Ohio | Yes, 0% to 3.125%, with business income at a flat 3% after a $250,000 deduction | No business income tax. Commercial activity tax of 0.26% on Ohio gross receipts above $6,000,000, for every kind of business. |
| Oklahoma | Yes, 0.25% to 4.75% | 4% corporate income tax. Income tax returns for partnerships and corporations. $25 LLC annual certificate. The franchise tax ended after 2023. |
| Oregon | Yes, 4.75% to 9.9% | 6.6% to 7.6% corporate excise tax, with a minimum from $150 set by Oregon sales. $150 minimum for S corporations. $100 LLC annual report. A separate 0.57% Corporate Activity Tax above $1,000,000 of commercial activity. |
| Pennsylvania | Yes, flat 3.07% | 7.99% corporate net income tax for 2025, falling each year to 4.99% in 2031. Information returns for partnerships and S corporations, with withholding for owners who live elsewhere. $7 LLC annual report, new for 2025. |
| Rhode Island | Yes, 3.75% to 5.99% | 7% corporate income tax. $400 minimum for every LLC, partnership and corporation, owed even with no profit, plus a $50 annual report fee. |
| South Carolina | Yes, 0% to 6% | 5% corporate income tax. Corporate license fee of at least $25. Income tax returns for partnerships and corporations. Nothing for an LLC the IRS disregards. |
| South Dakota | No | No corporate income tax. Annual report from $55 for LLCs and corporations. Banks pay a separate franchise tax. |
| Tennessee | No | 6.5% excise tax on net earnings and a franchise tax on net worth with a $100 minimum, for LLCs, partnerships and corporations. Business tax on receipts in each county from $100,000, sole proprietors included. |
| Texas | None | Franchise tax on LLCs, partnerships and corporations, at 0.75% of margin (0.375% for retail or wholesale). No tax below $2,470,000 of revenue, but a report is still due. Nothing for a sole proprietor. |
| Utah | Yes, flat 4.5% | 4.5% corporate income tax, at least $100. $18 yearly business renewal for LLCs, partnerships and corporations. |
| Vermont | Yes, 3.35% to 8.75% | 6% to 8.5% corporate income tax, at least $100. $250 minimum entity tax on partnerships and S corporations. Annual report for LLCs. |
| Virginia | Yes, 2% to 5.75% | 6% corporate income tax. Pass-through return for partnerships and S corporations. $50 yearly registration fee for LLCs. |
| Washington | None | Business and occupation (B&O) tax on gross receipts, with no deduction for costs. It reaches sole proprietors too. The rate depends on the type of business. |
| West Virginia | Yes, 2.22% to 4.82% | 6.5% corporate net income tax, with no minimum tax. $25 annual report for LLCs, partnerships and corporations. |
| Wisconsin | Yes, 3.5% to 7.65% | 7.9% corporate franchise or income tax. Annual report to the Department of Financial Institutions, from $25. A surcharge on corporations with $4,000,000 or more of gross receipts. |
| Wyoming | None | No tax on business profit. LLCs, partnerships and corporations pay an annual license tax with their annual report, at least $60 and more with substantial Wyoming assets. |