Illinois has a maximum corporate tax rate of 9.5%, just below Minnesota's rate of 9.8%. | Pexels.com / Karolina Gabrowska
Illinois has a maximum corporate tax rate of 9.5%, just below Minnesota's rate of 9.8%. | Pexels.com / Karolina Gabrowska
Illinois currently taxes corporations at a maximum rate of 9.5%, the third highest level of corporate taxation among the 50 states, according to a new analysis by the Tax Foundation.
Nationwide, among the 44 states with corporate income taxes, the rates range from a low of 2.5% in North Carolina to a high of 11.5% in New Jersey. On average, state corporate income taxes bring in only 4.04% percent of a state’s general fund revenues, according to the Tax Foundation.
Four states – Nevada, Ohio, Texas and Washington – have put in place gross receipts taxes in lieu of corporate income taxes, the study found. And South Dakota and Wyoming are the only states that have neither a corporate income tax nor a gross receipts tax, according to the Tax Foundation.
A total of 29 states have single-rate, or flat, corporate tax rates, which the analysis concluded are more reasonable than progressive, multi-rate systems, since the size of a company does not necessarily parallel the income levels of the owners.
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How Do States Structure Their Corporate Income Tax Systems?
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