PROVIDENCE – Rhode Island ranked as having the No. 18 highest combined state and federal corporate income tax rate in the nation as of July 1, 2018, the lowest rate in New England, according to the Tax Foundation Wednesday.
Rhode Island’s combined corporate income tax rate was 26.5% for the year.
The average combined corporate income tax rate in the United States was 25.9% in 2019, according to the report.
The highest combined corporate income tax rate in the report was in New Jersey at 30.1%, followed by Pennsylvania, Minnesota, Iowa and Illinois.
The lowest combined rate in the nation was 21%, representing the federal corporate income tax rate, as several states do not collect taxes on corporate profits. This includes South Dakota and Wyoming, as well as Ohio, Nevada, Texas and Washington. While Ohio, Nevada, Texas and Washington do not have a corporate income tax, the report noted the states subject businesses to taxation via a gross receipts tax.
State corporate income tax rates ranged from 3% in North Carolina to 12% in Iowa.
New England combined corporate income tax rates (as of July 1, 2018):
- Maine: No. 7 in the nation at 28.1%
- Vermont: No. 10 in the nation at 27.7%
- Connecticut and New Hampshire: Tied at No. 11 in the nation at 27.5%
- Massachusetts: No. 14 in the nation at 27.3%
- Rhode Island: No. 18 in the nation at 26.5%
Chris Bergenheim is the PBN web editor. You may reach him at Bergenheim@PBN.com.
