North Carolina levies a corporate income tax with a flat rate of 2.5 percent, according to a study by the Tax Foundation examining how well states have structured their corporate income tax systems in 2021.

Nationwide, among the 44 states with corporate income taxes, the rates range from a low of 2.5 percent in North Carolina to a high of 11.5 percent in New Jersey. And on average, state corporate income taxes bring in only 4.7 percent of a state’s total collections, according to the Tax Foundation.

The only states imposing gross receipts taxes in lieu of corporate income taxes are Nevada, Ohio, Texas and Washington, the study found. And South Dakota and Wyoming are the only states that have neither a corporate income tax nor a gross receipts tax, according to the Tax Foundation.

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How Do States Structure Their Corporate Income Tax Systems?

State / TerritoryState Corporate Income Tax Rates State Corporate Income Tax Brackets
Alabama6.50%>$0
Alaska0%>$0
 2%>$25,000
 3%>$49,000
 4%>$74,000
 5%>$99,000
 6%>$124,000
 7%>$148,000
 8%>$173,000
 9%>$198,000
 9.40%>$222,000
Arizona4.90%>$0
Arkansas1.00%>$0
 2.00%>$3,000
 3.00%>$6,000
 5.00%>$11,000
 6.00%>$25,000
 6.20%>$100,000
California8.84%>$0
Colorado4.55%>$0
Connecticut7.50%>$0
Delaware8.70%>$0
District of Columbia8.25%>$0
Florida4.46%>$0
Georgia5.75%>$0
Hawaii4.40%>$0
 5.40%>$25,000
 6.40%>$100,000
Idaho6.93%>$0
Illinois 9.50%>$0
Indiana5.25%>$0
Iowa5.50%>$0
 9.00%>$100,000
 9.80%>$250,000
Kansas4%>$0
 7%>$50,000
Kentucky5%>$0
Louisiana4%>$0
 5%>$25,000
 6%>$50,000
 7%>$100,000
 8%>$200,000
Maine3.50%>$0
 7.93%>$350,000
 8.33%>$1,050,000
 8.93%>$3,500,000
Maryland8.25%>$0
Massachusetts8.00%>$0
Michigan6.00%>$0
Minnesota9.80%>$0
Mississippi3%>$4,000
 4%>$5,000
 5%>$10,000
Missouri4.00%>$0
Montana6.75%>$0
Nebraska5.58%>$0
 7.81%>$100,000
Nevada None 
New Hampshire7.70%>$0
New Jersey6.50%>$0
 7.50%>$50,000
 9.00%>$100,000
 11.50%>$1,000,000
New Mexico4.80%>$0
 5.90%>$500,000
New York6.50%>$0
North Carolina2.50%>$0
North Dakota1.41%>$0
 3.55%>$25,000
 4.31%>$50,000
Ohio None 
Oklahoma6%>$0
Oregon6.60%>$0
 7.60%>$1,000,000
Pennsylvania9.99%>$0
Rhode Island7%>$0
South Carolina5%>$0
South Dakota None 
Tennessee6.50%>$0
Texas None 
Utah4.95%>$0
Vermont6%>$0
 7%>$10,000
 8.50%>$25,000
Virginia6%>$0
Washington None 
West Virginia6.50%>$0
Wisconsin7.90%>$0
Wyoming None 

Source: Tax Foundation