state income tax Archives -

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.

Tax rates increase as your income increases. The tax rates apply only to the income in each tax bracket range. Also, the tax rates apply only to your taxable income. There are various adjustments and deductions that all lower a person’s taxable income. Taxable income is almost always less than your total income. The new state income tax rates can change, so you will want to keep posted on those rates.

Tax Brackets for Single Filing Status:

Your income is under $8,350 then you will be taxed the least amount 10%.

Your income falls between $8,350 and $33,950; you will be taxed 15% plus $835.

Your income falls between $33,950 and $82,250; you will be taxed 25% plus $4,675.

Your income falls between $82,250 and $171,550; you will be taxed 28% plus $16,750.

Your income falls between $171,550 and $372,950; you will be taxed 33% plus $41,754.

Your income is greater than $372,950; you will be taxed the maximum of 35% plus $108,216.

Tax brackets for Married filing jointly:

If you are filing married instead of single for the 10% and 15% brackets you will double the income rate for the single filing status, listed above.

Once your income falls between $67,900 and $137,050; you will be taxed 25% plus $9,350.

Your income falls between $137,050 and $208,850; you will be taxed 28% plus $26,637.50.

Your income falls between $208,850 and $372.950; you will be taxed 33% plus $46,741.50.

Your income is greater than $372, 950; you will be taxed the maximum of 35% plus $100,894.50.

State Income Tax Rates

Individuals can use the tax rate schedules in a number of ways to help plan their finances. You can use these tax rates to figure out how much tax you will pay on extra income you earn. For a taxpayer in the 25% tax bracket, extra income will be taxed at that rate until the taxpayer reaches the next tax bracket.

By answering a few basic questions TurboTax Online can calculate the tax you will be liable for based on your income level. Visit TurboTax Online today to calculate your tax liability for your state tax return. Learn more about New State Income Tax Rates.