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.