Corporate State Income Tax Rates

When it comes to corporate state income tax, many states have a flat percentage rate they charge per your net income (tax bracket). Some states have tax brackets and there are even a few states that do not impose a corporate state income tax at all, such as Wyoming, Nevada and Washington.

Financial institutions typically have a separate tax rate that will be imposed. Some states also impose an alternative tax to the corporation state income tax. These variations are reflected and based upon the type of corporation you are filing for.

The state income tax rates can range from 1% to 12%, however most are under 10%. For example:

Alabama – is a state that imposes a flat rate of 6.5% on the net income of the corporation.

Arizona – is another state that imposes a flat rate and theirs is 6.968% and has a minimum of $50.00 due.

Arkansas – this state’s tax increases by 1% -3% per bracket: up to $3K is a 2% tax, $3K to $6K is a 3% tax, $6K to $11K is a 5% tax, $11K to $25K is a 6% tax and $25K to $110K is 6.5% tax.

I would recommend using an online service to help you in determining your tax liability and filing your return. There are services available that are very affordable and will minimize your stress and free up a lot of time. Some online services offer tax experts to answer your questions whenever you need help; whether it is during the day or 3am, they have someone available 24/7. I recommend TurboTax Online.

Visit TurboTax Online today, for answers to all of your tax-related questions. Learn more about Corporate State Income Tax Rates.

Corporate Income State Tax

Corporate state tax rates can become confusing because there are many variations from state to state. For example, Nevada, Washington and Wyoming do not even impose a corporation tax. Online tax software will help you keep up to date on corporate income state tax.

Some states impose a flat rate for their tax brackets and others impose a tax that varies from 1% to 12%. Most states have an average of 6% to 9%. You will need to research your particular state for an exact percentage you will be taxed. Also, some states have made slight changes in their rates for 2009.

This tax is imposed on net income. Most states recognize the federal government’s definition of net income. However, some states also allow an extension to the definition and allow adjustments to the net income.

The good news is there is help available for understanding corporate income state tax. Since business taxes are complicated and most of us really want to make sure we have claimed all deductions possible to reduce our tax liability, you should consider using an online service to help you file your tax return.

There are online services that are very cost-effective (affordable), easy to use and understand, and have tax professionals available to answer any questions you have along the way. These services are updated with the most up-to-date tax breaks, deductions and credits available. They will guarantee the accuracy of your return and error check your return reducing the risk of being audited by the IRS. Learn more about Corporate Income State Tax.

An excellent service I would recommend is TurboTax Online. Visit TurboTax Online today to answer your tax related questions and to review their available services.