On January 5, the Tax Foundation issued a report titled “State Corporate Income Tax Rates and Brackets, 2026,” which is chock full of data, including a map, prepared by the Foundation, that compares corporate tax rates in the fifty states.

According to the paper, of the forty-four states that levy a corporate income tax, “top rates range from a 2.0 percent flat rate in North Carolina to an 11.5 percent top marginal rate in New Jersey.” The median top marginal rate is 6.5 percent.

While no states increased their corporate income tax rates in the last year, four states reduced them: Georgia, Nebraska, North Carolina, and Pennsylvania. 

Here’s their story, according to the report:

• “Georgia reduced its corporate income tax rate to 5.09 percent from 5.19 percent. This rate will be reduced to 4.99 percent in the future, subject to certain revenue triggers.”

• “Nebraska lowered its flat corporate income tax rate to 4.55 percent, down from 5.2 percent. This rate will be reduced to 3.99 percent for tax years beginning on or after January 1, 2027, subject to revenue availability.”

• “In 2021, North Carolina enacted legislation that would eliminate the corporate income tax by 2030, with gradual phasedowns occurring over several years. In 2025, the flat corporate income tax rate was 2.25 percent. In 2026, the rate was reduced to 2 percent.”

• ”In 2021 Pennsylvania lawmakers enacted HB 1342, a multi-year phasedown of the corporate net income tax rate. Beginning in tax year 2023, the law reduced Pennsylvania’s corporate net income tax rate from 9.99 percent to 8.99 percent, with additional 0.5 percentage point reductions scheduled for each year until 2031, when the rate is scheduled to reach 4.99 percent. Consequently, for 2026, corporations will face a flat 7.49 percent income tax in Pennsylvania, down from 7.99 percent in 2025.”

#StateandLocalFinancialManagement #StateTaxManagement #StateCorporateTaxRates #TaxFoundation #TaxFoundationCorporateTaxReport #TaxFoundationCorporateTaxMap #GeorgiaCorporateIncomeTaxReduction #NebraskaCorporateIncomeTaxDeduction #NorthCarolinaPlannedCorporateIncomeTaxElimination #PennsulvaniaOngoingCorporateTaxReduction #StateandLocalManagementNews #StateandLocalTaxNews #BarrettandGreeneInc