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Tax Study States' Corporate Income Tax Rates July 1, 1996 | |||||
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STATE |
TAX RATE | -----TAX BRACKETS----- | # of BRACKETS | BANK TAX RATES | MINIMUM TAX RATE |
|
Connecticut |
10.75(a) |
--Flat Rate-- |
1 |
10.75(a) |
$250 (b) |
|
Florida |
5.5 |
--Flat Rate-- |
1 |
5.5 |
(c) |
|
Maine |
3.5-8.93 |
25,000 - 250,000 |
4 |
1 |
(d) |
|
Massachusetts |
9.5(e) |
--Flat Rate-- |
1 |
11.72 |
$456 |
|
Minnesota |
9.8 |
--Flat Rate-- |
1 |
9.8 |
(f) |
|
New Hampshire |
7.0(g) |
--Flat Rate-- |
1 |
7.0(g) |
$840 |
|
New York |
9.0(h) |
--Flat Rate-- |
1 |
9.0(h) |
$325-$1,500 |
|
North Carolina |
7.75(i) |
--Flat Rate-- |
1 |
7.75(i) |
- |
|
Oregon |
6.6 |
--Flat Rate-- |
1 |
6.6 |
$10 (j) |
|
Vermont |
5.5-8.25 |
10,000 - 250,000 |
4 |
5.5-8.25 |
$150 |
|
Washington |
No Corporate Income Tax | ||||
|
Wisconsin |
7.9(k) |
--Flat Rate-- |
1 |
7.9 |
- |
Notes:
Major Source: The Federation of Tax Administrators on Internet site: http://sso.org/fta/corp_inc.html
Source for Minimum tax information: State Tax Handbook, CCH Tax Law Editors, as of Dec. 31, 1995.
a- Tax rate will fall to 10.5% in 1997, 9.5% in 1998, 8.5% in 1999, and 7.5% after 1999.
b- Or 3.1 mills per dollar of capital stock and surplus (maximum tax $1 million).
c- 3.3% Alternative Minimum Tax. An exemption of $5,000 is allowed.
d- 27% tax on Federal Alternative Minimum Taxable Income. Addit. state min. tax imposed equal to the amount by which the state minimum tax (27% of adj. Fed. tentative minimum tax) exceeds ME income tax liability, other than withholding tax liability.
e- Rate includes a 14% surtax, as does the following: an additional tax of $2.60 per $1,000 on taxable tangible property (or net worth allocable to state, for intangible property corporations); Bank tax rate will fall to 11.32% in 1997, 10.91% in 1998 and 10.5% after 1998.
f- An addit. tax equal to the excess of 5.8% of MN alternative min. taxable income over the basic tax is imposed. Corp's are subject to an addit. min. tax ranging from $0 to $5,000 depending on the MN property, payrolls, sales and receipts, and the type of corp. or partnership.
g- Capital gains are taxed at 4%.
h- For tax years beginning before July 1, 1995, a 12.5% surcharge is applied. For tax years beginning after June 30, 1995 but before July 1, 1996, a 7.5% surcharge is applied. Or 1.78 (.01 for banks) mills per dollar of capital (up to $350,000; or 5% (3% for banks) of the minimum taxable income; or a minimum of $1,500 to $325 depending on payroll size. ($250 plus 2.5% surtax for banks); if any of these is greater than the tax computed on net income. An additional tax of .9 mills per dollar of subsidiary capital is imposed on corporations.
i- Plus a 1% surtax. Financial institutions are also subject to a Franchise tax equal to $30 per one million in assets.
j- Minimum Corp. excise tax is $10 in Oregon.
k- Plus a surtax set annually by the Dept. of Revenue to finance a special recycling fund.