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State Corporate Income Taxes

Most states impose a corporate income tax in addition to personal income tax. This makes corporations subject to income tax in the same way as individuals although rates, deductions, and other important rules differ between individuals and corporations. Some state corporate income tax systems use a graduated method, and some states use a flat rate method. To help attract businesses to their states, some states purposely keep their corporate income tax rates lower than other states. Other incentives can include certain tax exemptions, also designed to attract new businesses to these states.


Inside State Corporate Income Taxes