United States of America

Country Name: United States of America
Currency: United States Dollar (USD, $)
Primary Tax Authority: Internal Revenue Service (IRS)

Key Legislation:

• Internal Revenue Code (IRC): Codifies federal tax laws, covering income, corporate, and estate taxes.
• Tax Cuts and Jobs Act (TCJA) 2017: Recent major overhaul that introduced lower corporate rates and individual tax adjustments.
• Affordable Care Act (ACA): Includes tax provisions related to healthcare.
• Bank Secrecy Act (BSA): Contains reporting obligations related to foreign accounts (FBAR).
• State Tax Codes: Each state has its own tax laws, adding complexity to the overall tax structure.

Tax Authority and Collection Competence

Fiscal Authority Allocation:

The United States has a federal system, meaning taxation is divided between the federal government, state governments, and, in some cases, local governments. While the IRS administers and collects federal taxes, each state has its own tax authorities and regulations.

Taxes Collected by Federal Authorities:

• Corporate income tax (CIT)
• Personal income tax (PIT)
• Capital gains tax
• Estate and gift taxes
• Payroll taxes
• Excise taxes
• Foreign income reporting and taxation (for U.S. citizens and residents)

Taxes Collected by State and Local Authorities:

• State income tax (varies by state, some have no income tax like Texas and Florida)
• Sales tax (varies significantly by state and locality)
• Property tax (local governments)
• State corporate income tax (varies by state)
• Unemployment insurance tax (state-administered)
• State-specific excise taxes (e.g., on fuel, tobacco, and alcohol)

Revenue Sharing Mechanisms:
There are no significant revenue-sharing mechanisms between the federal government and states, but states receive federal grants for specific purposes (e.g., infrastructure, healthcare).

I. Federal Taxes

Corporate Income Tax (CIT)

• Standard CIT Rate: 21% flat rate since the Tax Cuts and Jobs Act of 2017.
• State CIT: Ranges from 0% (e.g., South Dakota) to over 10% (e.g., New Jersey).
• Taxable Income Definition: U.S. companies are taxed on worldwide income, but foreign income may benefit from certain exclusions and credits. Non-resident companies are taxed only on U.S.-sourced income.
• Deductible Expenses: Includes ordinary and necessary business expenses, depreciation, amortization, and interest.
• Loss Carryforwards/Carrybacks: Losses can be carried forward indefinitely, though they are limited to 80% of taxable income in a given year. Carrybacks are generally not permitted.
• Tax Incentives: Includes the R&D credit, accelerated depreciation, and the Qualified Business Income (QBI) deduction for certain pass-through entities.

Value-Added Tax (VAT) / Sales Tax

• The United States does not have a national VAT. Instead, individual states impose sales taxes on goods and services.
• Sales Tax Rates: Vary widely from state to state. The average combined state and local sales tax rate is approximately 7-8%.
• Exemptions: Many states exempt groceries, prescription drugs, and certain services from sales tax.
• Interstate Sales and Online Transactions: Following the Supreme Court decision in South Dakota v. Wayfair, Inc., states can collect sales tax on remote (online) transactions, even if the seller has no physical presence in the state.

Personal Income Tax (PIT)

• Federal PIT Rates (as of 2024):
  • 10% on income up to $11,000 (single) / $22,000 (married filing jointly)
  • 12%, 22%, 24%, 32%, 35%, and 37% for higher income brackets
• Standard Deduction: $13,850 (single), $27,700 (married filing jointly).
• State Income Taxes: Most states levy income taxes, with rates varying significantly (from 0% in states like Texas to nearly 13.3% in California).
• Deductions and Exemptions: Charitable donations, mortgage interest, and medical expenses are common deductions. Some states allow state-specific deductions as well.
• Foreign Income Treatment: U.S. citizens and residents are taxed on worldwide income, but foreign tax credits and exclusions (such as the Foreign Earned Income Exclusion) may apply.
• Special Rules for Expatriates: U.S. expats may claim the Foreign Earned Income Exclusion (FEIE), which allows them to exclude up to approximately $120,000 (adjusted annually) of foreign income.

Additional Mandatory Contributions

The United States has a dual system of federal and state social security contributions.

Payroll Taxes (Federal Level):

• Social Security Tax: 6.2% paid by both employee and employer on earnings up to $160,200 (for 2024).
• Medicare Tax: 1.45% each for employee and employer, with no income cap. Additional 0.9% surtax on income over $200,000 (single) / $250,000 (married).
• Unemployment Insurance (FUTA): 6% on the first $7,000 of employee wages (with reductions based on state contributions).

State Payroll Taxes:

• Vary by state and can include unemployment insurance and state-specific social security programs.

Contribution Thresholds:

Payroll taxes apply to specific income thresholds (e.g., Social Security tax applies only to earnings below $160,200).

Tax Deductibility:

Employer contributions are tax-deductible as a business expense, but employee contributions are not deductible on personal tax returns.

Employer and Employee Contributions:

Employers are responsible for deducting employee contributions and remitting both their share and the employee’s share to the IRS.

Withholding Taxes

• Dividends: 30% withholding tax on dividends paid to non-residents, unless reduced by a tax treaty.
• Interest: 30% withholding tax on interest paid to non-residents, with treaty reductions.
• Royalties: 30% withholding tax on royalties paid to non-residents, with treaty reductions.

Transfer Pricing Rules

• Documentation Requirements: U.S. companies must maintain documentation to prove that related-party transactions are at arm’s length.
• Arm’s Length Principle: Requires that transactions between related parties reflect fair market value.
• Penalties for Non-Compliance: Companies failing to meet transfer pricing rules can face adjustments, penalties, and interest on unpaid tax.

Controlled Foreign Corporation (CFC) Rules

The U.S. applies CFC rules to prevent U.S. taxpayers from deferring taxes by holding income in foreign corporations. Key provisions include Subpart F income and GILTI (Global Intangible Low-Taxed Income), targeting specific types of income earned by CFCs.

Subpart F Income

• Definition: Subpart F income includes certain types of passive or easily movable income, such as dividends, interest, rent, royalties, and certain types of sales or services income. It is designed to prevent U.S. shareholders from avoiding immediate taxation by shifting income to low-tax jurisdictions.
• Inclusion in U.S. Shareholder’s Income: U.S. shareholders of a CFC must include their pro-rata share of the CFC’s Subpart F income on their U.S. tax return, regardless of whether the income has been distributed.
• Threshold for CFC: A foreign corporation qualifies as a CFC if more than 50% of its stock (by vote or value) is owned by U.S. shareholders. A U.S. shareholder is any U.S. person who owns at least 10% of the corporation’s voting stock or value.
• Exceptions: There are de minimis exceptions and full inclusion rules for companies with a mixture of Subpart F and non-Subpart F income.

GILTI (Global Intangible Low-Taxed Income)

• Purpose: Introduced by the Tax Cuts and Jobs Act (TCJA) of 2017, GILTI seeks to tax intangible income that could be easily shifted to low-tax jurisdictions.
• Inclusion in U.S. Shareholder’s Income: U.S. shareholders of CFCs must include their share of GILTI, which is calculated as the excess of the CFC’s net income over a 10% return on tangible assets. The income is subject to a minimum tax.
• Tax Rate: GILTI is taxed at an effective rate of 10.5% for corporate shareholders (after a 50% deduction), though it can be higher for individuals. The effective rate may increase to 13.125% starting in 2026. Individuals can elect to be taxed as corporations to take advantage of this lower rate.
• Foreign Tax Credits: A partial foreign tax credit (80%) is allowed to offset GILTI, but it’s subject to certain limitations.
• Reporting: U.S. taxpayers with interests in CFCs must navigate extensive reporting requirements (e.g., Form 5471) and potential inclusion of income under Subpart F or GILTI.

Exit Tax (Section 877A)

The Exit Tax applies to U.S. citizens and long-term residents (green card holders) who renounce their citizenship or surrender their green card and meet certain criteria. The tax aims to prevent these individuals from avoiding U.S. taxes by expatriating.

Applicability

• Covered Expatriate: The Exit Tax applies only to “covered expatriates,” who are individuals meeting one of the following criteria:
  • Net Worth Test: A net worth of $2 million or more on the date of expatriation.
  • Tax Liability Test: An average annual net U.S. tax liability exceeding $190,000 (as of 2023, adjusted annually for inflation) over the five preceding years.
  • Compliance Test: Failure to certify compliance with U.S. tax obligations for the five preceding years.
• Exceptions: Certain dual citizens and minors who expatriate before the age of 18½ may be exempt if they meet specific conditions.

Calculation of Exit Tax

• Deemed Sale: Upon expatriation, covered expatriates are treated as if they sold all their worldwide assets at fair market value the day before expatriation, triggering capital gains tax.
• Exclusion Amount: For 2023, the first $821,000 of capital gain is excluded from taxation (adjusted annually for inflation). Gains above this threshold are taxed at the applicable capital gains rate.
• Asset Classes: The Exit Tax applies to all forms of property, including securities, real estate, retirement plans, and even interests in trusts.

Tax on Deferred Compensation and Trusts

• Deferred Compensation: Includes pensions, 401(k) plans, and similar accounts. A special tax applies if these assets are not rolled over into a U.S. tax-deferred account before expatriation.
• Trusts: Beneficiaries of foreign and domestic trusts may face complex tax rules under Section 877A, including the potential inclusion of trust distributions in their exit tax calculation.

Filing and Compliance

• Form 8854: Expatriates must file Form 8854, which certifies their compliance with U.S. tax obligations for the prior five years and calculates the Exit Tax. Failure to file can result in continued tax obligations.
• Post-Expatriation: Former U.S. citizens and long-term residents may still be liable for taxes on U.S.-source income under the 30% withholding tax rule applicable to non-resident aliens.

Special Tax Regimes

• Qualified Business Income (QBI) Deduction: Allows certain pass-through businesses to deduct up to 20% of their business income.
• Foreign-Derived Intangible Income (FDII): A reduced tax rate on income derived from foreign sales of goods and services.
• Base Erosion and Anti-Abuse Tax (BEAT): Targets large corporations that make deductible payments to foreign affiliates.
• GILTI (Global Intangible Low-Taxed Income): Imposes tax on foreign earnings of U.S. companies above a set return on tangible assets.

Other Taxes

• Capital Gains Tax:
  • Short-term: Same as ordinary income tax rates.
  • Long-term: 0%, 15%, or 20% depending on income.
• Estate Tax: 40% on estates over $12.92 million (for 2023).
• Gift Tax: Applies to lifetime transfers exceeding the annual exclusion (currently $17,000 per recipient).
• Property Taxes: Levied at the local level, with rates and methods of assessment varying significantly across jurisdictions.
• Excise Taxes: Imposed on goods like fuel, tobacco, and alcohol.

Double Taxation Agreements (DTAs)

• Key Partner Countries: The U.S. has over 60 DTAs, including major treaties with Canada, the UK, Germany, and Japan.
• Reduced Withholding Tax Rates: The DTAs often reduce withholding tax rates on dividends, interest, and royalties, sometimes to zero.
• Tax Treaty Benefits Application Process: To claim treaty benefits, non-residents need to submit Form W-8BEN to the IRS.

Local Taxes

• Property Taxes: Levied at the county or municipal level, often funding local schools and public services. Rates are based on assessed property values and can vary significantly by region.
• Sales Taxes: Collected by states and municipalities. The combined rate of state and local sales taxes can range from 0% to over 10%.
• Other Local Taxes: May include school taxes, municipal income taxes (e.g., in cities like New York), and local business taxes.

Compliance and Reporting

• Corporate Tax Filing Deadlines: Corporate tax returns (Form 1120) are due on the 15th day of the 4th month after the end of the fiscal year, with automatic extensions available.
• Individual Tax Filing Deadlines: April 15th, with an extension available until October 15th.
• Foreign Account Reporting: U.S. persons must report foreign accounts if aggregate balances exceed $10,000 at any time during the year (FBAR filing).

Recent Developments

Inflation Reduction Act (IRA) 2022: This law introduced several new tax provisions aimed at addressing climate change and reducing inflation. Notable changes include corporate minimum tax on large corporations (15% on profits exceeding $1 billion) and new incentives for clean energy investments.

Secure Act 2.0 (2022): This legislation introduces new provisions aimed at enhancing retirement savings. It raises the required minimum distribution (RMD) age from retirement accounts, allows for increased catch-up contributions, and introduces new Roth options.

Expansion of Child Tax Credit (2021): As part of the American Rescue Plan, the Child Tax Credit was temporarily increased for 2021 to provide up to $3,600 per child, with part of the credit delivered in advance monthly payments. The future of this expanded benefit is still under consideration in Congress.

GILTI and FDII Adjustments: Ongoing debates in Congress include potential increases in the GILTI (Global Intangible Low-Taxed Income) and FDII (Foreign-Derived Intangible Income) tax rates, with the intention of aligning U.S. tax law more closely with global minimum tax agreements like the OECD’s Pillar Two framework.

IRS Funding Expansion (2022): The IRS received an unprecedented increase in funding through the Inflation Reduction Act, with an aim to strengthen enforcement, modernize tax technology, and reduce the tax gap. This may lead to increased audits, particularly for high-net-worth individuals and large corporations.

Digital Assets: The IRS has expanded reporting requirements for cryptocurrencies and other digital assets. Taxpayers are now required to disclose crypto holdings and transactions on their annual tax returns, and the government is increasing efforts to close tax gaps in this area.

II. Taxation in the States

Alabama

Tax Authority: Alabama Department of Revenue (ADOR)

Key Legislation

• Title 40 of the Code of Alabama (Taxation)
• Alabama Administrative Code
• Alabama Business Privilege Tax Law

Corporate Income Tax (CIT)

• Rate: 6.5% flat rate on taxable income.
• Tax Base: Corporate income earned in Alabama is taxable. Multistate corporations apportion income based on a three-factor formula (property, payroll, sales), with double-weighted sales.
• Deductions and Allowances:
  • Federal income taxes paid can be deducted from taxable income.
  • Net operating losses (NOLs) can be carried forward for up to 15 years but cannot be carried back.

Personal Income Tax (PIT)

• Rates: Progressive tax rate structure:
  • 2% on the first $500 of taxable income
  • 4% on taxable income between $501 and $3,000
  • 5% on taxable income over $3,000
• Tax Brackets: Apply to individuals filing as single or head of household; married couples filing jointly have different brackets.
• Deductions and Allowances:
  • Deductions for federal income taxes paid.
  • Standard deduction amounts vary based on filing status and income.
  • Itemized deductions allowed for mortgage interest, charitable contributions, medical expenses, etc.

Sales Tax

• State Rate: 4%
• Combined Rate: Local rates can vary, resulting in a total combined sales tax ranging from 5% to 11.5% depending on the locality.
• Nexus Rules: Businesses with physical presence or significant economic nexus (sales exceeding $250,000 in Alabama) must file and pay sales tax.
• Interstate Transactions: Out-of-state sellers with economic nexus must collect Alabama sales tax on goods shipped into the state.
• International Transactions: Exports are generally exempt from sales tax. Imports are taxable if sold within the state.

Other Taxes

• Property Tax: Alabama has relatively low property taxes, with rates ranging from 0.3% to 0.8% of the assessed value depending on the county.
• Business Privilege Tax: Based on a company’s net worth, rates range from $0.25 to $1.75 per $1,000 of net worth. The minimum tax is $100.
• Excise Taxes: Include gasoline tax (current rate $0.26 per gallon) and tobacco tax.

Compliance

• Corporate Tax Filing Deadline: Returns are due April 15 following the tax year. Extensions can be requested for up to six months.
• Personal Tax Filing Deadline: Personal income tax returns are due April 15.
• Sales Tax Filing: Monthly, quarterly, or annually depending on sales volume. Returns are generally due by the 20th of the month following the reporting period.

Alaska

Tax Authority: Alaska Department of Revenue

Key Legislation

• Alaska Statutes Title 43 (Revenue and Taxation)
• Alaska Administrative Code
• Alaska Oil and Gas Production Tax Act

Corporate Income Tax (CIT)

• Rate: Progressive rates ranging from 0% to 9.4%.
  • Up to $25,000: 0%
  • $25,001 to $49,000: 2%
  • $49,001 to $74,000: 3%
  • $74,001 to $99,000: 4%
  • $99,001 to $124,000: 5%
  • $124,001 to $148,000: 6%
  • $148,001 to $173,000: 7%
  • $173,001 to $198,000: 8%
  • Over $222,000: 9.4%
• Tax Base: All corporations doing business in Alaska are taxed on their Alaska-sourced income. Multistate corporations apportion income based on a sales factor.
• Deductions and Allowances:
  • Federal income tax is not deductible in Alaska.
  • Alaska allows for deductions on business expenses, net operating losses (NOLs) can be carried forward for up to 10 years.

Personal Income Tax (PIT)

• N/A: Alaska does not impose a personal income tax on residents or non-residents.

Sales Tax

• State Rate: N/A (Alaska does not impose a statewide sales tax).
• Combined Rate: Local governments can impose sales taxes ranging from 0% to 7.5%.
• Nexus Rules: Economic nexus applies for businesses meeting threshold requirements (typically $100,000 in sales or 200 transactions in local jurisdictions).
• Interstate Transactions: Out-of-state sellers are required to collect sales tax if they meet the economic nexus threshold within a particular local jurisdiction.
• International Transactions: Exported goods are exempt; imported goods sold in applicable local jurisdictions are subject to local sales tax.

Other Taxes

• Property Tax: Rates vary significantly by locality, with averages ranging from 0.5% to 1.2% of assessed value.
• Oil and Gas Production Tax: Alaska’s economy is heavily dependent on oil and gas. The production tax rate varies based on the market price of oil, ranging from 15% to 35% of net income.
• Excise Taxes:
  • Gasoline excise tax: $0.0895 per gallon
  • Alcohol tax: Rates vary depending on the type of alcohol, such as $12.80 per gallon for spirits.
  • Tourism tax (on accommodations): 0% to 7%, depending on the municipality.
• Business License Fee: All businesses must obtain a business license. The fee is $50 annually or $100 for a two-year license.

Compliance

• Corporate Tax Filing Deadline: Returns are due by the 15th day of the 4th month following the close of the fiscal year (typically April 15 for calendar-year taxpayers). Extensions are available for up to six months.
• Sales Tax Filing: Filing frequency (monthly, quarterly, or annually) depends on the local jurisdiction and the volume of sales. Generally due by the last day of the month following the reporting period.
• Property Tax Filing: Property tax payments and reporting are handled by local governments, with deadlines varying depending on the municipality.

Arizona

Tax Authority: Arizona Department of Revenue (ADOR)

Key Legislation

• Arizona Revised Statutes Title 42 (Taxation)
• Arizona Corporate Income Tax Act
• Transaction Privilege Tax (TPT) Statutes

Corporate Income Tax (CIT)

• Rate: 4.9% flat rate on taxable income.
• Tax Base: Corporations are taxed on Arizona-sourced income. Multistate corporations use a sales factor for apportionment.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Arizona allows for deductions on business expenses and charitable contributions, with net operating losses (NOLs) carried forward for up to 20 years.

Personal Income Tax (PIT)

• Rates: Progressive rates ranging from 2.59% to 4.5% (2023 rates):
  • 2.59% on income up to $28,653
  • 3.34% on income between $28,654 and $57,305
  • 4.17% on income between $57,306 and $172,913
  • 4.5% on income over $172,913
• Deductions and Allowances:
  • Standard deduction: $12,950 for single filers, $25,900 for joint filers.
  • Itemized deductions allowed for mortgage interest, medical expenses, charitable donations, etc.
  • Arizona also provides credits for charitable contributions to qualifying charitable organizations.

Sales Tax (Transaction Privilege Tax, TPT)

• State Rate: 5.6%
• Combined Rate: Local jurisdictions can levy additional rates, resulting in a total combined sales tax ranging from 5.6% to 11.2%.
• Nexus Rules: Economic nexus applies for remote sellers exceeding $100,000 in annual sales into Arizona. Physical presence is also considered for nexus.
• Interstate Transactions: Arizona requires out-of-state sellers meeting the economic nexus threshold to collect TPT on sales to Arizona customers.
• International Transactions: Exports are generally exempt, while imports are subject to sales tax when sold within the state.

Other Taxes

• Property Tax: Property tax rates vary by county and municipality, with effective rates ranging from 0.5% to 1.5% of the property’s assessed value.
• Excise Taxes:
  • Gasoline Tax: $0.19 per gallon
  • Cigarette Tax: $2.00 per pack
  • Alcohol Tax: Varies by type (e.g., $3.00 per gallon for distilled spirits).
• Luxury Taxes: Apply to certain items such as tobacco and alcohol.
• Annual Report and Filing Fee: Arizona requires corporations and LLCs to file an annual report and pay a filing fee. The fee is $45 for corporations and $50 for LLCs.

Compliance

• Corporate Tax Filing Deadline: Returns are due by the 15th day of the 4th month following the close of the fiscal year (typically April 15 for calendar-year taxpayers).
• Personal Tax Filing Deadline: April 15th, with automatic extensions available for up to six months.
• Sales Tax Filing (TPT): Filing frequency depends on the size of the business; monthly filings are common. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Handled at the local level, with deadlines varying depending on the municipality.

Arkansas

Tax Authority: Arkansas Department of Finance and Administration (DFA)

Key Legislation

• Arkansas Code Title 26 (Taxation)
• Arkansas Corporate Income Tax Act
• Arkansas Sales and Use Tax Code

Corporate Income Tax (CIT)

• Rate: Progressive rates ranging from 1% to 5.3% (as of 2023):
  • Up to $3,000: 1%
  • $3,001 to $6,000: 2%
  • $6,001 to $11,000: 3%
  • $11,001 to $25,000: 5%
  • Over $25,000: 5.3%
• Tax Base: Arkansas corporations are taxed on Arkansas-sourced income. Multistate corporations use a three-factor formula based on property, payroll, and sales.
• Deductions and Allowances:
  • Federal income taxes paid are deductible.
  • Business expenses, including charitable contributions, are deductible. NOLs can be carried forward for up to 10 years.

Personal Income Tax (PIT)

• Rates: Progressive rates from 0% to 4.9% (as of 2023):
  • Up to $5,099: 0%
  • $5,100 to $10,299: 2%
  • $10,300 to $15,499: 3%
  • Over $15,500: 4.9%
• Deductions and Allowances:
  • Standard deduction: $2,200 for single filers, $4,400 for joint filers.
  • Itemized deductions for mortgage interest, charitable contributions, medical expenses, and more. Arkansas also allows deductions for retirement income up to $6,000.

Sales Tax

• State Rate: 6.5%
• Combined Rate: Local rates can range from 0.25% to 5.125%, leading to a total combined rate of 6.5% to 11.625% depending on locality.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 separate transactions into the state.
• Interstate Transactions: Out-of-state sellers are required to collect Arkansas sales tax if they meet the economic nexus threshold.
• International Transactions: Exports are generally exempt. Imports sold within the state are subject to Arkansas sales tax.

Other Taxes

• Property Tax: Rates vary by county and municipality, with average effective rates ranging from 0.6% to 1.2% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.245 per gallon
  • Cigarette Tax: $1.15 per pack
  • Alcohol Tax: Varies by type (e.g., $2.50 per gallon on spirits).
• Franchise Tax: Annual tax on businesses based on capital stock or shareholder equity. Corporations are generally taxed at 0.3% of the entity’s outstanding capital stock, the minimum tax is $150.

Compliance

• Corporate Tax Filing Deadline: Returns are due by the 15th day of the 4th month following the close of the fiscal year (April 15 for calendar-year taxpayers).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Monthly, quarterly, or annually depending on the size of the business. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Handled at the local level, with payment deadlines varying depending on the county.

California

Tax Authority: California Department of Tax and Fee Administration (CDTFA) for sales and use taxes, Franchise Tax Board (FTB) for income taxes.

Key Legislation

• California Revenue and Taxation Code
• Corporation Tax Law
• California Sales and Use Tax Law

Corporate Income Tax (CIT)

• Rate: 8.84% flat rate on taxable income for C corporations. S corporations pay a 1.5% tax on net income, with a minimum tax of $800.
• Tax Base: California corporations are taxed on their worldwide income, with income apportioned based on a sales factor for multistate businesses.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • California allows business expense deductions, and NOLs can be carried forward for up to 20 years (no carrybacks).

Personal Income Tax (PIT)

• Rates: California has a highly progressive system with rates ranging from 1% to 13.3% for high-income earners (2023):
  • 1% on income up to $10,099
  • 2% on income from $10,100 to $23,942
  • 4% on income from $23,943 to $37,788
  • 6% on income from $37,789 to $52,455
  • 8% on income from $52,456 to $66,295
  • 9.3% on income from $66,296 to $338,639
  • 10.3% on income from $338,640 to $406,364
  • 11.3% on income from $406,365 to $677,275
  • 12.3% on income over $677,275
  • 13.3% for income exceeding $1 million (known as the “millionaire’s tax”).
• Deductions and Allowances:
  • Standard deduction: $5,202 for single filers, $10,404 for joint filers.
  • Itemized deductions allowed for mortgage interest, state taxes paid, charitable donations, medical expenses, etc. There are phase-outs for high-income earners.

Sales Tax

• State Rate: 7.25%
• Combined Rate: Localities can impose additional sales taxes, with total rates ranging from 7.25% to 10.75%, depending on the city or county.
• Nexus Rules: Economic nexus applies to businesses with over $500,000 in sales to California customers. Physical presence also creates nexus.
• Interstate Transactions: Out-of-state sellers exceeding the economic nexus threshold must collect California sales tax.
• International Transactions: Exports are generally exempt, and imports sold within California are subject to the state’s sales tax.

Other Taxes

• Property Tax: The statewide average effective property tax rate is approximately 0.74%, though actual rates vary depending on the location, with a 1% base rate on assessed property value (subject to voter-approved additions).
• Franchise Tax: $800 minimum annual franchise tax for all LLCs, partnerships, and S corporations. LLCs pay an $800 minimum franchise tax annually, plus an additional fee based on total income from California sources, which can range from $900 to $11,790 depending on revenue. Corporations (C corporations) pay a minimum franchise tax of $800, or 8.84% of taxable income if greater. S Corporations pay a minimum tax of $800 or 1.5% of net income, whichever is greater. Limited Partnerships (LPs) and Limited Liability Partnerships (LLPs) are subject to the $800 minimum tax as well.
• Excise Taxes:
  • Gasoline Tax: $0.539 per gallon
  • Cigarette Tax: $2.87 per pack
  • Alcohol Tax: Rates vary by type (e.g., $3.30 per gallon for distilled spirits).

Compliance

• Corporate Tax Filing Deadline: The deadline for C corporations is the 15th day of the 4th month following the end of the fiscal year (April 15 for calendar-year taxpayers). S corporations must file by the 15th day of the 3rd month (March 15 for calendar-year taxpayers).
• Personal Tax Filing Deadline: April 15, with extensions available for up to six months.
• Sales Tax Filing: Businesses generally file monthly, quarterly, or annually, depending on the volume of sales. Returns are typically due by the last day of the month following the reporting period.
• Property Tax Filing: Property taxes are due in two installments: the first on December 10 and the second on April 10.

Colorado

Tax Authority: Colorado Department of Revenue (CDOR)

Key Legislation

• Colorado Revised Statutes Title 39 (Taxation)
• Colorado Income Tax Act
• Colorado Sales and Use Tax Code

Corporate Income Tax (CIT)

• Rate: 4.55% flat rate on corporate income.
• Tax Base: Corporations are taxed on their Colorado-sourced income. Multistate corporations use a single sales factor for apportionment.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Business expense deductions are allowed, and net operating losses (NOLs) can be carried forward for up to 20 years (no carrybacks).

Personal Income Tax (PIT)

• Rate: 4.55% flat rate for all income levels.
• Deductions and Allowances:
  • Standard deduction: Matches the federal deduction, which is $13,850 for single filers and $27,700 for joint filers (2023).
  • Itemized deductions allowed for mortgage interest, charitable donations, state and local taxes, etc. There is a $30,000 cap on itemized deductions for high-income earners (income above $400,000).

Sales Tax

• State Rate: 2.9%
• Combined Rate: Local governments (cities, counties) can levy additional sales taxes, leading to a total combined rate ranging from 2.9% to 11.2% depending on the locality.
• Nexus Rules: Economic nexus applies if a business has more than $100,000 in annual sales into Colorado.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect Colorado sales tax.
• International Transactions: Exports are exempt from sales tax. Imports sold within Colorado are subject to sales tax.

Other Taxes

• Property Tax: Colorado’s effective property tax rate is relatively low, averaging around 0.49% of assessed property value, although rates vary by county.
• Excise Taxes:
  • Gasoline Tax: $0.22 per gallon
  • Cigarette Tax: $1.94 per pack
  • Alcohol Tax: Rates vary by type (e.g., $2.28 per gallon for spirits).
• Business License Tax: No general business license tax.
• Franchise Tax: Colorado does not impose a franchise tax, but annual business registration fees apply.
• Filing fees for Corporations and LLCs: Must file an annual report with the Colorado Secretary of State and pay the fee of $10.

Compliance

• Corporate Tax Filing Deadline: Returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with automatic extensions available.
• Sales Tax Filing: Filing frequency (monthly, quarterly, or annually) depends on sales volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Property taxes are administered locally, with deadlines varying by county.

Connecticut

Tax Authority: Connecticut Department of Revenue Services (DRS)

Key Legislation

• Connecticut General Statutes Title 12 (Taxation)
• Connecticut Corporate Business Tax Law
• Connecticut Sales and Use Tax Code

Corporate Income Tax (CIT)

• Rate: 7.5% flat rate on taxable income.
  • There is also a 10% surcharge for companies with gross income exceeding $100 million or companies that are part of a combined reporting group.
• Tax Base: Corporations are taxed on their Connecticut-sourced income. Multistate businesses use a single sales factor for apportionment.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • NOLs can be carried forward for up to 20 years. There is a 50% limitation on the use of NOLs to offset taxable income.

Personal Income Tax (PIT)

• Rates: Progressive rates ranging from 3% to 6.99% (2023):
  • 3% on income up to $10,000 (single filers) or $20,000 (joint filers)
  • 5% on income from $10,001 to $50,000 (single) or $20,001 to $100,000 (joint)
  • 5.5% on income from $50,001 to $100,000 (single) or $100,001 to $200,000 (joint)
  • 6% on income from $100,001 to $200,000 (single) or $200,001 to $400,000 (joint)
  • 6.5% on income from $200,001 to $500,000 (single) or $400,001 to $1,000,000 (joint)
  • 6.99% on income over $500,000 (single) or $1,000,000 (joint)
• Deductions and Allowances:
  • Standard deduction: Varies based on income level (up to $24,000 for joint filers, phase-out begins at higher income levels).
  • Itemized deductions allowed for mortgage interest, charitable donations, medical expenses, and state and local taxes.

Sales Tax

• State Rate: 6.35%
• Combined Rate: Local jurisdictions do not add sales tax in Connecticut, so the total state sales tax rate is 6.35%.
• Nexus Rules: Economic nexus applies if a business has more than $100,000 in annual sales or 200 separate transactions into Connecticut.
• Interstate Transactions: Out-of-state sellers meeting the economic nexus threshold must collect Connecticut sales tax.
• International Transactions: Exports are exempt from sales tax. Imports sold within Connecticut are subject to state sales tax.

Other Taxes

• Property Tax: Property taxes in Connecticut are among the highest in the U.S., with average effective rates ranging from 1.7% to 2.5% depending on the municipality.
• Excise Taxes:
  • Gasoline Tax: $0.25 per gallon
  • Cigarette Tax: $4.35 per pack
  • Alcohol Tax: Varies by type (e.g., $5.40 per gallon on distilled spirits).
• Business Entity Tax: A $250 tax is levied biennially (every two years) on LLCs, LPs, and LLPs.
• Franchise Tax: No specific franchise tax, but corporations must pay the corporate income tax as outlined above.

Compliance

• Corporate Tax Filing Deadline: Returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with automatic extensions available.
• Sales Tax Filing: Generally filed monthly, though businesses with lower sales volume may file quarterly or annually. Returns are due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by municipality.

Delaware

Tax Authority: Delaware Division of Revenue

Key Legislation

• Delaware Code Title 30 (Taxation)
• Delaware Corporate Income Tax Law
• Delaware Gross Receipts Tax Law

Corporate Income Tax (CIT)

• Rate: 8.7% flat rate on taxable income for all corporations.
• Tax Base: Corporations are taxed on their Delaware-sourced income. Multistate corporations use a three-factor apportionment formula based on property, payroll, and sales, with double-weighted sales.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Business expenses, including charitable contributions, are deductible. NOLs can be carried forward for up to 20 years.

Personal Income Tax (PIT)

• Rates: Progressive rates ranging from 2.2% to 6.6% (2023):
  • 2.2% on income up to $2,000
  • 3.9% on income from $2,001 to $5,000
  • 4.8% on income from $5,001 to $10,000
  • 5.2% on income from $10,001 to $20,000
  • 5.55% on income from $20,001 to $25,000
  • 6.6% on income over $60,000
• Deductions and Allowances:
  • Standard deduction: $3,250 for single filers, $6,500 for joint filers.
  • Itemized deductions are allowed, and Delaware also allows credits for retirement income up to $12,500 for those over 60.

Sales Tax

• State Rate: Delaware does not impose a state sales tax.
• Combined Rate: N/A, as Delaware has no state or local sales tax.
• Nexus Rules: N/A due to no state sales tax.
• Interstate Transactions: Delaware does not levy a sales tax on interstate sales.
• International Transactions: No sales tax is levied on imports or exports.

Other Taxes

• Property Tax: Delaware has low property tax rates, with an average effective rate of 0.56% of assessed property value, though rates vary by county.
• Gross Receipts Tax: Delaware imposes a gross receipts tax on the total gross revenues of businesses, with rates ranging from 0.0945% to 0.7468%, depending on the type of business.
• Franchise Tax: Delaware’s franchise tax applies to business entities incorporated in the state.
  • Corporations: Franchise tax is calculated based on either the authorized shares method or the assumed par value capital method. Minimum tax is $175, and large corporations can pay up to $250,000 or more, depending on share structure and valuation.
  • LLCs, LPs, and LLPs: Pay an annual franchise tax of $300.
• Excise Taxes:
  • Gasoline Tax: $0.23 per gallon
  • Cigarette Tax: $2.10 per pack
  • Alcohol Tax: Varies by type (e.g., $3.75 per gallon on spirits).

Compliance

• Corporate Tax Filing Deadline: Corporate returns are due by the 15th day of the 4th month following the close of the fiscal year (April 15 for calendar-year taxpayers).
• Personal Tax Filing Deadline: April 30 for individual income tax returns, with extensions available.
• Sales Tax Filing: N/A (no sales tax in Delaware).
• Gross Receipts Tax Filing: Filed monthly or quarterly, depending on business volume, with returns due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Florida

Tax Authority: Florida Department of Revenue (FDOR)

Key Legislation

• Florida Statutes Title XIV (Taxation and Finance)
• Florida Corporate Income Tax Code
• Florida Sales and Use Tax Law

Corporate Income Tax (CIT)

• Rate: 5.5% flat rate on taxable income for corporations.
• Tax Base: Corporations are taxed on their Florida-sourced income. Multistate corporations apportion income using a single sales factor.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years (no carryback). Florida also allows deductions for business expenses, including charitable contributions.

Personal Income Tax (PIT)

• N/A: Florida does not impose a state personal income tax on residents or non-residents.

Sales Tax

• State Rate: 6%
• Combined Rate: Local governments can levy additional sales taxes, with total combined rates ranging from 6% to 8.5% depending on the locality.
• Nexus Rules: Economic nexus applies for businesses with over $100,000 in annual sales or 200 transactions into Florida.
• Interstate Transactions: Out-of-state sellers with nexus in Florida are required to collect and remit sales tax.
• International Transactions: Exports are generally exempt from sales tax. Imports sold within the state are subject to sales tax.

Other Taxes

• Property Tax: Florida has moderate property taxes, with an average effective property tax rate of 0.83% of assessed property value, varying by county.
• Franchise Tax: N/A. Florida does not levy a specific franchise tax.
• Excise Taxes:
  • Gasoline Tax: $0.419 per gallon (includes both state and local excise taxes)
  • Cigarette Tax: $1.34 per pack
  • Alcohol Tax: Varies by type (e.g., $6.50 per gallon on distilled spirits).
• Business License Fees: No statewide license tax, but many localities impose business licensing requirements. Corporations and LLCs must file an annual report with the Florida Division of Corporations. The filing fee is $150 for corporations and $138.75 for LLCs.

Compliance

• Corporate Tax Filing Deadline: Corporate income tax returns are due by the 1st day of the 5th month following the close of the fiscal year (May 1 for calendar-year corporations).
• Personal Tax Filing Deadline: N/A (no state personal income tax).
• Sales Tax Filing: Filing is typically required monthly, but some businesses may file quarterly or annually based on sales volume. Returns are due by the 20th of the month following the reporting period.
• Property Tax Filing: Property taxes are administered at the county level, with payment deadlines typically falling in November and March (split into two installments).

Georgia

Tax Authority: Georgia Department of Revenue (GADOR)

Key Legislation

• Georgia Code Title 48 (Revenue and Taxation)
• Georgia Corporate Income Tax Law
• Georgia Sales and Use Tax Code

Corporate Income Tax (CIT)

• Rate: 5.75% flat rate on taxable income for corporations.
• Tax Base: Corporations are taxed on their Georgia-sourced income. Multistate businesses apportion income based on a single sales factor.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Business expense deductions are allowed, and net operating losses (NOLs) can be carried forward for up to 20 years.

Personal Income Tax (PIT)

• Rates: Progressive rates ranging from 1% to 5.75% (2023):
  • 1% on income up to $750 (single filers) or $1,000 (joint filers)
  • 2% on income from $751 to $2,250 (single) or $1,001 to $3,000 (joint)
  • 3% on income from $2,251 to $3,750 (single) or $3,001 to $5,000 (joint)
  • 4% on income from $3,751 to $5,250 (single) or $5,001 to $7,000 (joint)
  • 5% on income from $5,251 to $7,000 (single) or $7,001 to $10,000 (joint)
  • 5.75% on income over $7,000 (single) or $10,000 (joint)
• Deductions and Allowances:
  • Standard deduction: $5,400 for single filers, $7,100 for joint filers.
  • Itemized deductions are allowed for mortgage interest, charitable donations, medical expenses, and state and local taxes.

Sales Tax

• State Rate: 4%
• Combined Rate: Local governments (counties and cities) can levy additional sales taxes, resulting in total combined rates ranging from 6% to 8% depending on the locality.
• Nexus Rules: Economic nexus applies if a business has more than $100,000 in sales or 200 transactions into Georgia annually.
• Interstate Transactions: Out-of-state sellers meeting the economic nexus threshold must collect Georgia sales tax.
• International Transactions: Exports are generally exempt from sales tax. Imports sold within Georgia are subject to sales tax.

Other Taxes

• Property Tax: Property tax rates in Georgia vary by county, with an average effective rate of 0.87% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.29 per gallon
  • Cigarette Tax: $0.37 per pack (one of the lowest in the U.S.)
  • Alcohol Tax: Varies by type (e.g., $3.79 per gallon on distilled spirits).
• Franchise Tax: N/A. Georgia does not impose a franchise tax on businesses.
• Business License Fees: LLCs and Corporations required to file an annual registration with the Georgia Secretary of State, with a filing fee of $50. Local governments may impose licensing fees on businesses operating within their jurisdictions.

Compliance

• Corporate Tax Filing Deadline: Corporate income tax returns are due by the 15th day of the 4th month following the close of the fiscal year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Monthly, quarterly, or annually depending on business volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Hawaii

Tax Authority: Hawaii Department of Taxation (DOTAX)

Key Legislation

• Hawaii Revised Statutes Title 14 (Taxation)
• Hawaii Corporate Income Tax Law
• Hawaii General Excise Tax (GET) Law

Corporate Income Tax (CIT)

• Rate: Progressive rates from 4.4% to 6.4% based on taxable income:
  • 4.4% on income up to $25,000
  • 5.4% on income from $25,001 to $100,000
  • 6.4% on income over $100,000
• Tax Base: Corporations are taxed on Hawaii-sourced income. Multistate corporations apportion income using a three-factor formula based on property, payroll, and sales.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Business expenses are deductible, and net operating losses (NOLs) can be carried forward for up to 20 years (no carryback).

Personal Income Tax (PIT)

• Rates: Progressive rates from 1.4% to 11% (2023):
  • 1.4% on income up to $2,400 (single filers) or $4,800 (joint filers)
  • 3.2% on income from $2,401 to $4,800 (single) or $4,801 to $9,600 (joint)
  • 5.5% on income from $4,801 to $9,600 (single) or $9,601 to $19,200 (joint)
  • 7.9% on income from $9,601 to $48,000 (single) or $19,201 to $96,000 (joint)
  • 8.25% on income from $48,001 to $150,000 (single) or $96,001 to $300,000 (joint)
  • 11% on income over $200,000 (single) or $400,000 (joint)
• Deductions and Allowances:
  • Standard deduction: $2,200 for single filers, $4,400 for joint filers.
  • Itemized deductions are allowed for mortgage interest, charitable donations, medical expenses, and state and local taxes.

Sales Tax (General Excise Tax – GET)

• State Rate: 4%
• Combined Rate: An additional 0.5% surcharge is applied in Honolulu County, bringing the total GET to 4.5%.
• Nexus Rules: Economic nexus applies if a business has more than $100,000 in sales or 200 transactions into Hawaii annually.
• Interstate Transactions: Out-of-state sellers meeting the economic nexus threshold must collect GET.
• International Transactions: Exports are exempt from GET. Imports sold within Hawaii are subject to GET.

Other Taxes

• Property Tax: Hawaii has relatively low property taxes, with an average effective rate of 0.28% of assessed property value (one of the lowest in the U.S.). Rates vary by county.
• Excise Taxes:
  • Gasoline Tax: $0.16 per gallon
  • Cigarette Tax: $3.20 per pack
  • Alcohol Tax: Varies by type (e.g., $5.98 per gallon on distilled spirits).
• Franchise Tax: N/A. Hawaii does not impose a franchise tax, but corporations must pay the corporate income tax as outlined above. Corporations and LLCs must file an annual report with the Hawaii Department of Commerce and Consumer Affairs. The fee is $15.

Compliance

• Corporate Tax Filing Deadline: Returns are due by the 20th day of the 4th month following the close of the tax year (April 20 for calendar-year corporations).
• Personal Tax Filing Deadline: April 20, with extensions available.
• Sales Tax Filing (GET): Filing is required monthly, quarterly, or annually, depending on the size of the business. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Idaho

Tax Authority: Idaho State Tax Commission

Key Legislation

• Idaho Code Title 63 (Revenue and Taxation)
• Idaho Corporate Income Tax Law
• Idaho Sales and Use Tax Code

Corporate Income Tax (CIT)

• Rate: 5.8% flat rate on taxable income for corporations.
• Tax Base: Corporations are taxed on their Idaho-sourced income. Multistate corporations apportion income using a three-factor formula based on property, payroll, and sales.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years. Business expenses are deductible according to Idaho’s regulations.

Personal Income Tax (PIT)

• Rate: 5.8% flat rate for all income levels (2023).
• Deductions and Allowances:
  • Standard deduction: $12,950 for single filers, $25,900 for joint filers (2023, matching federal deduction).
  • Itemized deductions allowed for mortgage interest, charitable donations, medical expenses, and state and local taxes.

Sales Tax

• State Rate: 6%
• Combined Rate: Some local jurisdictions may add sales tax, though this is relatively rare, leading to combined rates typically at 6%.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales into Idaho annually.
• Interstate Transactions: Out-of-state sellers meeting the economic nexus threshold must collect Idaho sales tax.
• International Transactions: Exports are exempt from Idaho sales tax. Imports sold within the state are subject to sales tax.

Other Taxes

• Property Tax: Idaho’s property tax rates vary by county, with an average effective rate of 0.63% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.33 per gallon
  • Cigarette Tax: $0.57 per pack
  • Alcohol Tax: Varies by type (e.g., $10.20 per gallon on distilled spirits).
• Franchise Tax: N/A. Idaho does not levy a franchise tax.
• Business License Fees: No statewide business license tax, though certain industries may require local or special licensing. Corporations and LLCs need to file an annual with the Idaho Secretary of State. The filing fee is $0 for corporations and LLCs (no fee, but filing is mandatory).

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Monthly, quarterly, or annually depending on sales volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Indiana

Tax Authority: Indiana Department of Revenue (DOR)

Key Legislation

• Indiana Code Title 6 (Taxation)
• Indiana Corporate Income Tax Law
• Indiana Sales and Use Tax Code

Corporate Income Tax (CIT)

• Rate: 4.9% flat rate on taxable income.
• Tax Base: Corporations are taxed on their Indiana-sourced income. Multistate corporations apportion income using a single sales factor.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years.

Personal Income Tax (PIT)

• Rate: 3.15% flat rate for all income levels (as of 2023).
• Deductions and Allowances:
  • Standard deduction: $1,000 for single filers, $2,000 for joint filers.
  • Indiana also allows deductions for retirement income, property taxes paid, and rent paid.

Sales Tax

• State Rate: 7%
• Combined Rate: Local jurisdictions do not impose additional sales taxes, so the statewide rate remains at 7%.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 transactions into Indiana annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect Indiana sales tax.
• International Transactions: Exports are exempt from sales tax. Imports sold within Indiana are subject to sales tax.

Other Taxes

• Property Tax: Indiana’s property tax rates vary by county, with an average effective rate of 0.81% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.33 per gallon
  • Cigarette Tax: $0.995 per pack
  • Alcohol Tax: Varies by type (e.g., $2.68 per gallon on distilled spirits).
• Franchise Tax: N/A. Indiana does not impose a franchise tax.
• Business License Fees: No statewide business license tax, though certain industries may require local or special licensing. Corporations and LLCs are required to file a biennial report with the Indiana Secretary of State, with a filing fee of $50 for corporations and $31 for LLCs.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on sales volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Iowa

Tax Authority: Iowa Department of Revenue (IDR)

Key Legislation

• Iowa Code Title X (Revenue and Finance)
• Iowa Corporate Income Tax Law
• Iowa Sales and Use Tax Law

Corporate Income Tax (CIT)

• Rate: Progressive tax rates ranging from 5.5% to 8.4% (2023):
  • 5.5% on income up to $100,000
  • 9.8% on income over $100,000
• Tax Base: Corporations are taxed on their Iowa-sourced income. Multistate corporations apportion income using a single sales factor.
• Deductions and Allowances:
  • Federal income taxes are deductible, making Iowa one of the few states that allow this.
  • NOLs can be carried forward for up to 20 years (no carryback).

Personal Income Tax (PIT)

• Rates: Progressive rates from 4.4% to 6% (2023):
  • 4.4% on income up to $6,000 (single filers) or $12,000 (joint filers)
  • 6% on income over $75,000 (single) or $150,000 (joint)
• Deductions and Allowances:
  • Standard deduction: $2,210 for single filers, $5,450 for joint filers (2023).
  • Itemized deductions allowed for mortgage interest, charitable donations, medical expenses, and state and local taxes.

Sales Tax

• State Rate: 6%
• Combined Rate: Local governments may impose additional sales taxes, resulting in combined rates ranging from 6% to 7% depending on the locality.
• Nexus Rules: Economic nexus applies if a business has more than $100,000 in sales or 200 separate transactions into Iowa annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect Iowa sales tax.
• International Transactions: Exports are exempt from sales tax. Imports sold within Iowa are subject to sales tax.

Other Taxes

• Property Tax: Iowa’s property tax rates vary by county, with an average effective rate of 1.53% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.305 per gallon
  • Cigarette Tax: $1.36 per pack
  • Alcohol Tax: Varies by type (e.g., $12.50 per gallon on distilled spirits).
• Franchise Tax: N/A. Iowa does not impose a franchise tax.
• Business License Fees: No statewide business license tax, though certain industries may require local or special licensing. Corporations and LLCs are required to file a biennial report with the Iowa Secretary of State, with a filing fee of $45 for corporations and $60 for LLCs.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 30, with extensions available.
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on sales volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Kansas

Tax Authority: Kansas Department of Revenue (KDOR)

Key Legislation

• Kansas Statutes Chapter 79 (Taxation)
• Kansas Corporate Income Tax Law
• Kansas Retailers’ Sales Tax Law

Corporate Income Tax (CIT)

• Rate:
  • 4% on the first $50,000 of taxable income
  • 7% on income over $50,000
• Tax Base: Corporations are taxed on their Kansas-sourced income. Multistate corporations apportion income using a three-factor formula based on property, payroll, and sales (double-weighted sales).
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • NOLs can be carried forward for up to 20 years, but no carryback is allowed.

Personal Income Tax (PIT)

• Rates: Progressive rates from 3.1% to 5.7% (2023):
  • 3.1% on income up to $15,000 (single filers) or $30,000 (joint filers)
  • 5.25% on income from $15,001 to $30,000 (single) or $30,001 to $60,000 (joint)
  • 5.7% on income over $30,000 (single) or $60,000 (joint)
• Deductions and Allowances:
  • Standard deduction: $3,500 for single filers, $8,000 for joint filers.
  • Itemized deductions allowed for mortgage interest, charitable donations, and medical expenses.

Sales Tax

• State Rate: 6.5%
• Combined Rate: Local jurisdictions may impose additional sales taxes, resulting in total combined rates ranging from 7% to 11% depending on the locality.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales into Kansas annually.
• Interstate Transactions: Out-of-state sellers meeting the economic nexus threshold must collect Kansas sales tax.
• International Transactions: Exports are exempt from sales tax. Imports sold within Kansas are subject to sales tax.

Other Taxes

• Property Tax: Property tax rates in Kansas vary by county, with an average effective rate of 1.37% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.24 per gallon
  • Cigarette Tax: $1.29 per pack
  • Alcohol Tax: Varies by type (e.g., $2.50 per gallon on distilled spirits).
• Franchise Tax: Kansas does not impose a general franchise tax.
• Business License Fees: Certain industries may require business licensing, but there is no statewide business license tax. Corporations and LLCs need to file an annual report with the Secretary of State. The filing fee is $55 for paper filings or $50 for online filings.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Filing is required monthly, quarterly, or annually, depending on business volume. Returns are generally due by the 25th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Kentucky

Tax Authority: Kentucky Department of Revenue (DOR)

Key Legislation

• Kentucky Revised Statutes Chapter 141 (Income Taxes)
• Kentucky Corporate Income Tax Law
• Kentucky Sales and Use Tax Code

Corporate Income Tax (CIT)

• Rate: 5% flat rate on taxable income.
• Tax Base: Corporations are taxed on their Kentucky-sourced income. Multistate corporations apportion income using a single sales factor.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years (no carryback).

Personal Income Tax (PIT)

• Rate: 5% flat rate for all income levels.
• Deductions and Allowances:
  • Standard deduction: $2,980 (2023).
  • Kentucky allows deductions for retirement income, social security benefits, and certain itemized deductions such as medical expenses and charitable donations.

Sales Tax

• State Rate: 6%
• Combined Rate: Local governments do not levy additional sales taxes, so the state rate remains 6% across Kentucky.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales into Kentucky annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect Kentucky sales tax.
• International Transactions: Exports are exempt from sales tax. Imports sold within Kentucky are subject to sales tax.

Other Taxes

• Property Tax: Kentucky’s property tax rates vary by county, with an average effective rate of 0.83% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.26 per gallon
  • Cigarette Tax: $1.10 per pack
  • Alcohol Tax: Varies by type (e.g., $1.92 per gallon on distilled spirits).
• Franchise Tax: Kentucky does not impose a general franchise tax, but the state does have a Limited Liability Entity Tax (LLET).
  • LLET applies to all LLCs, partnerships, and S corporations. The minimum LLET is $175 or 0.095% of gross receipts (or 0.75% of gross profits), whichever is higher.
  • Corporations and LLCs are required to file an annual report with the Kentucky Secretary of State, with a filing fee of $15.
• Business License Fees: Certain industries may require licensing, but no statewide business license tax.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Monthly, quarterly, or annually depending on sales volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Louisiana

Tax Authority: Louisiana Department of Revenue (LDR)

Key Legislation

• Louisiana Revised Statutes Title 47 (Revenue and Taxation)
• Louisiana Corporate Income Tax Law
• Louisiana Sales and Use Tax Law

Corporate Income Tax (CIT)

• Rate: Progressive rates from 3.5% to 7.5% on taxable income:
  • 3.5% on the first $50,000 of taxable income
  • 5.5% on taxable income between $50,001 and $100,000
  • 7.5% on taxable income over $100,000
• Tax Base: Corporations are taxed on their Louisiana-sourced income. Multistate corporations apportion income using a single sales factor.
• Deductions and Allowances:
  • Federal income taxes are deductible for corporations.
  • Net operating losses (NOLs) can be carried forward for up to 20 years, but no carryback is allowed.

Personal Income Tax (PIT)

• Rates: Progressive rates from 1.85% to 4.25% (as of 2023):
  • 1.85% on income up to $12,500 (single filers) or $25,000 (joint filers)
  • 3.5% on income from $12,501 to $50,000 (single) or $25,001 to $100,000 (joint)
  • 4.25% on income over $50,000 (single) or $100,000 (joint)
• Deductions and Allowances:
  • Federal income taxes are deductible.
  • Standard deduction is not provided, but Louisiana allows personal exemptions and credits for dependents, mortgage interest, medical expenses, and charitable donations.

Sales Tax

• State Rate: 4.45%
• Combined Rate: Local jurisdictions can impose additional sales taxes, resulting in combined rates ranging from 8.45% to 11.45% depending on the locality.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 transactions into Louisiana annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect Louisiana sales tax.
• International Transactions: Exports are exempt from sales tax. Imports sold within Louisiana are subject to sales tax.

Other Taxes

• Property Tax: Louisiana has relatively low property taxes, with an average effective rate of 0.53% of assessed property value, though rates vary by parish.
• Excise Taxes:
  • Gasoline Tax: $0.20 per gallon
  • Cigarette Tax: $1.08 per pack
  • Alcohol Tax: Varies by type (e.g., $3.03 per gallon on distilled spirits).
• Franchise Tax: Louisiana imposes a franchise tax on corporations, based on taxable capital employed in the state.
  • Rate: $1.50 per $1,000 of taxable capital up to $300,000, and $3 per $1,000 of taxable capital over $300,000. The minimum franchise tax is $110.
  • LLCs are generally not subject to the franchise tax but must pay filing fees for registration and reporting.
• Business License Fees: Louisiana requires specific industries to obtain business licenses, but there is no general statewide business license tax.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the fiscal year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: May 15, with extensions available.
• Sales Tax Filing: Monthly, quarterly, or annually depending on the size of the business. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by parish.

Maine

Tax Authority: Maine Revenue Services (MRS)

Key Legislation

• Maine Revised Statutes Title 36 (Taxation)
• Maine Corporate Income Tax Law
• Maine Sales and Use Tax Law

Corporate Income Tax (CIT)

• Rate: Progressive rates from 3.5% to 8.93%:
  • 3.5% on income up to $350,000
  • 8.93% on income over $3.5 million
• Tax Base: Corporations are taxed on Maine-sourced income. Multistate corporations apportion income using a single sales factor.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years, no carryback is allowed.

Personal Income Tax (PIT)

• Rates: Progressive rates from 5.8% to 7.15% (2023):
  • 5.8% on income up to $24,500 (single filers) or $49,000 (joint filers)
  • 6.75% on income from $24,501 to $58,500 (single) or $49,001 to $117,000 (joint)
  • 7.15% on income over $58,500 (single) or $117,000 (joint)
• Deductions and Allowances:
  • Standard deduction: $12,950 for single filers, $25,900 for joint filers (2023, matching federal standard).
  • Itemized deductions allowed for mortgage interest, charitable donations, medical expenses, and state and local taxes.

Sales Tax

• State Rate: 5.5%
• Combined Rate: Local jurisdictions do not impose additional sales taxes, so the statewide rate remains at 5.5%.
• Nexus Rules: Economic nexus applies if a business has more than $100,000 in sales or 200 transactions into Maine annually.
• Interstate Transactions: Out-of-state sellers meeting the economic nexus threshold must collect Maine sales tax.
• International Transactions: Exports are exempt from sales tax. Imports sold within Maine are subject to sales tax.

Other Taxes

• Property Tax: Maine’s property tax rates vary by municipality, with an average effective rate of 1.09% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.30 per gallon
  • Cigarette Tax: $2.00 per pack
  • Alcohol Tax: Varies by type (e.g., $1.25 per gallon on spirits).
• Franchise Tax: Maine does not impose a general franchise tax, but there are specific excise taxes for financial institutions.
• Business License Fees: Some industries require state licensing, but there is no general business license tax. Corporations and LLCs are required to file an annual report with the Maine Secretary of State, with a filing fee of $85.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on sales volume. Returns are generally due by the 15th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by municipality.

Maryland

Tax Authority: Maryland Comptroller of the Treasury

Key Legislation

• Maryland Tax-General Article
• Maryland Corporate Income Tax Law
• Maryland Sales and Use Tax Law

Corporate Income Tax (CIT)

• Rate: 8.25% flat rate on taxable income.
• Tax Base: Corporations are taxed on their Maryland-sourced income. Multistate corporations apportion income using a single sales factor.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years, no carryback is allowed.

Personal Income Tax (PIT)

• Rates: Progressive rates ranging from 2% to 5.75%, depending on income:
  • 2% on income up to $1,000
  • 4.75% on income from $1,001 to $3,000
  • 5% on income from $3,001 to $100,000 (single filers) or $150,000 (joint filers)
  • 5.25% on income from $100,001 to $250,000 (single) or $150,001 to $300,000 (joint)
  • 5.75% on income over $250,000 (single) or $300,000 (joint)
• Deductions and Allowances:
  • Standard deduction: Ranges from $1,600 to $2,400 for single filers and $3,200 to $4,800 for joint filers.
  • Maryland allows itemized deductions for mortgage interest, charitable donations, medical expenses, and state and local taxes.

Sales Tax

• State Rate: 6%
• Combined Rate: Local jurisdictions do not add additional sales taxes in Maryland, so the state rate of 6% applies uniformly.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 transactions into Maryland annually.
• Interstate Transactions: Out-of-state sellers with nexus in Maryland are required to collect sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within Maryland are subject to sales tax.

Other Taxes

• Property Tax: Maryland’s property tax rates vary by county, with an average effective rate of 1.06% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.427 per gallon
  • Cigarette Tax: $3.75 per pack (among the highest in the U.S.)
  • Alcohol Tax: Varies by type (e.g., $1.50 per gallon on distilled spirits).
• Franchise Tax: Maryland does not impose a general franchise tax.
• Business License Fees: Certain industries may require state or local business licenses, but there is no general statewide business license tax.
• Corporations and LLCs are required to file an annual report with the Maryland State Department of Assessments and Taxation, with a filing fee of $300.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on sales volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Massachusetts

Tax Authority: Massachusetts Department of Revenue (DOR)

Key Legislation

• Massachusetts General Laws Chapter 62 (Income Taxation)
• Massachusetts Corporate Income Tax Law
• Massachusetts Sales and Use Tax Law

Corporate Income Tax (CIT)

• Rate: 8.0% flat rate on taxable income for corporations.
• Tax Base: Corporations are taxed on their Massachusetts-sourced income. Multistate corporations apportion income using a single sales factor.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years, but there is no carryback.

Personal Income Tax (PIT)

• Rate: 5% flat rate on most income (2023).
  • An additional 4% surcharge applies to income over $1 million (the “Millionaire’s Tax”).
• Deductions and Allowances:
  • Standard deduction: Massachusetts does not offer a standard deduction, but it does offer personal exemptions.
  • Personal exemptions: $4,400 for single filers, $8,800 for joint filers.
  • Itemized deductions are allowed for mortgage interest, charitable donations, and medical expenses.

Sales Tax

• State Rate: 6.25%
• Combined Rate: Local jurisdictions do not impose additional sales taxes, so the statewide rate remains at 6.25%.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales into Massachusetts annually.
• Interstate Transactions: Out-of-state sellers meeting the economic nexus threshold must collect Massachusetts sales tax.
• International Transactions: Exports are exempt from sales tax. Imports sold within Massachusetts are subject to sales tax.

Other Taxes

• Property Tax: Massachusetts property tax rates vary by locality, with an average effective rate of 1.17% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.24 per gallon
  • Cigarette Tax: $3.51 per pack
  • Alcohol Tax: Varies by type (e.g., $4.05 per gallon on distilled spirits).
• Franchise Tax: Massachusetts does not impose a general franchise tax, but there is a corporate excise tax of $456 or 0.26% of tangible property for corporations, whichever is greater.
• Business License Fees: Certain industries may require state or local business licenses, but no general business license tax is imposed statewide. Corporations and LLCs must file an annual report with the Massachusetts Secretary of the Commonwealth, with a filing fee of $500 for most entities.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Filing is required monthly, quarterly, or annually, depending on sales volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by municipality.

Michigan

Tax Authority: Michigan Department of Treasury

Key Legislation

• Michigan Compiled Laws (MCL) Chapter 206 (Taxation)
• Michigan Corporate Income Tax Law
• Michigan Sales and Use Tax Act

Corporate Income Tax (CIT)

• Rate: 6.0% flat rate on taxable income.
• Tax Base: Corporations are taxed on their Michigan-sourced income. Multistate corporations apportion income using a single sales factor.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years, no carryback allowed.

Personal Income Tax (PIT)

• Rate: 4.25% flat rate for all income levels.
• Deductions and Allowances:
  • Standard deduction: Michigan does not provide a standard deduction, but certain types of retirement income are deductible.
  • Michigan allows itemized deductions for mortgage interest, charitable donations, and medical expenses.
  • Personal exemptions: $5,400 for single filers, $10,800 for joint filers.

Sales Tax

• State Rate: 6%
• Combined Rate: Local jurisdictions in Michigan do not impose additional sales taxes, so the statewide rate remains 6%.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 transactions into Michigan annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect Michigan sales tax.
• International Transactions: Exports are exempt from sales tax. Imports sold within Michigan are subject to sales tax.

Other Taxes

• Property Tax: Michigan property tax rates vary by county, with an average effective rate of 1.54% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.272 per gallon
  • Cigarette Tax: $2.00 per pack
  • Alcohol Tax: Varies by type (e.g., $6.30 per gallon on distilled spirits).
• Franchise Tax: Michigan does not impose a general franchise tax, but corporations must pay the Michigan Business Tax (MBT) in some cases.
• Business License Fees: No statewide business license tax, though certain industries may require state or local licensing. Corporations and LLCs must file an annual report with the Michigan Department of Licensing and Regulatory Affairs (LARA). The filing fee is $25 for LLCs and $25 for corporations.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Filing is required monthly, quarterly, or annually, depending on business volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Minnesota

Tax Authority: Minnesota Department of Revenue (DOR)

Key Legislation

• Minnesota Statutes Chapter 290 (Taxation)
• Minnesota Corporate Income Tax Law
• Minnesota Sales and Use Tax Law

Corporate Income Tax (CIT)

• Rate: 9.8% flat rate on taxable income.
• Tax Base: Corporations are taxed on their Minnesota-sourced income. Multistate corporations apportion income using a single sales factor.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years, but no carryback is allowed.

Personal Income Tax (PIT)

• Rates: Progressive rates from 5.35% to 9.85% (2023):
  • 5.35% on income up to $29,210 (single filers) or $42,100 (joint filers)
  • 6.8% on income from $29,211 to $96,860 (single) or $42,101 to $161,720 (joint)
  • 7.85% on income from $96,861 to $182,100 (single) or $161,721 to $284,810 (joint)
  • 9.85% on income over $182,100 (single) or $284,810 (joint)
• Deductions and Allowances:
  • Standard deduction: Matches the federal deduction ($13,850 for single filers, $27,700 for joint filers in 2023).
  • Minnesota allows itemized deductions for mortgage interest, charitable donations, medical expenses, and state and local taxes.

Sales Tax

• State Rate: 6.875%
• Combined Rate: Local governments may impose additional sales taxes, with combined rates ranging from 6.875% to 8.875% depending on the locality.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 transactions into Minnesota annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect Minnesota sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within Minnesota are subject to sales tax.

Other Taxes

• Property Tax: Minnesota property tax rates vary by county, with an average effective rate of 1.12% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.285 per gallon
  • Cigarette Tax: $3.04 per pack
  • Alcohol Tax: Varies by type (e.g., $5.03 per gallon on distilled spirits).
• Franchise Tax: Minnesota does not impose a general franchise tax.
• Business License Fees: Certain industries may require state or local business licensing. Corporations and LLCs are required to file an annual report with the Minnesota Secretary of State, with a filing fee of $0 (free filing, but mandatory reporting).

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on sales volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Mississippi

Tax Authority: Mississippi Department of Revenue (MDOR)

Key Legislation

• Mississippi Code Title 27 (Taxation and Finance)
• Mississippi Corporate Income Tax Law
• Mississippi Sales and Use Tax Law

Corporate Income Tax (CIT)

• Rate: Progressive rates from 3% to 5%:
  • 3% on taxable income up to $5,000
  • 4% on taxable income from $5,001 to $10,000
  • 5% on taxable income over $10,000
• Tax Base: Corporations are taxed on their Mississippi-sourced income. Multistate corporations apportion income using a three-factor formula based on property, payroll, and sales, with double-weighted sales.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years, but no carryback is allowed.

Personal Income Tax (PIT)

• Rates:
  • 4% on taxable income between $5,001 and $10,000
  • 5% on taxable income over $10,000
• Deductions and Allowances:
  • Standard deduction: $2,300 for single filers, $4,600 for joint filers.
  • Mississippi allows itemized deductions for mortgage interest, charitable donations, and medical expenses.

Sales Tax

• State Rate: 7%
• Combined Rate: Local jurisdictions may impose additional sales taxes, resulting in combined rates ranging from 7% to 8%.
• Nexus Rules: Economic nexus applies if a business exceeds $250,000 in sales into Mississippi annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect Mississippi sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within Mississippi are subject to sales tax.

Other Taxes

• Property Tax: Mississippi property tax rates vary by county, with an average effective rate of 0.81% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.18 per gallon
  • Cigarette Tax: $0.68 per pack
  • Alcohol Tax: Varies by type (e.g., $2.50 per gallon on distilled spirits).
• Franchise Tax: Mississippi imposes a franchise tax on corporations based on capital employed in the state.
  • Rate: $2.50 per $1,000 of capital employed in Mississippi, with a minimum tax of $25.
  • LLCs are generally not subject to the franchise tax but must file an annual report with the Mississippi Secretary of State, with a filing fee of $0 (free filing, but mandatory).
• Business License Fees: Certain industries may require state or local business licensing.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Monthly, quarterly, or annually depending on sales volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Missouri

Tax Authority: Missouri Department of Revenue (DOR)

Key Legislation

• Missouri Revised Statutes Chapter 143 (Taxation)
• Missouri Corporate Income Tax Law
• Missouri Sales and Use Tax Law

Corporate Income Tax (CIT)

• Rate: 4% flat rate on taxable income (as of 2023).
• Tax Base: Corporations are taxed on Missouri-sourced income. Multistate corporations apportion income using a single sales factor.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years, but no carryback is allowed.

Personal Income Tax (PIT)

• Rates: Progressive rates from 0% to 4.95% (2023):
  • 0% on income up to $1,200
  • 2% on income from $1,201 to $2,400
  • 4.95% on income over $8,704
• Deductions and Allowances:
  • Standard deduction: Matches the federal deduction ($13,850 for single filers, $27,700 for joint filers in 2023).
  • Missouri allows itemized deductions for mortgage interest, charitable donations, and medical expenses.

Sales Tax

• State Rate: 4.225%
• Combined Rate: Local jurisdictions may impose additional sales taxes, with combined rates ranging from 4.225% to 10.35%, depending on the locality.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales into Missouri annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect Missouri sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within Missouri are subject to sales tax.

Other Taxes

• Property Tax: Missouri property tax rates vary by county, with an average effective rate of 0.91% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.174 per gallon
  • Cigarette Tax: $0.17 per pack (one of the lowest in the U.S.)
  • Alcohol Tax: Varies by type (e.g., $2.00 per gallon on distilled spirits).
• Franchise Tax: Missouri does not impose a general franchise tax but previously imposed one on financial institutions.
• Business License Fees: Certain industries may require state or local business licensing, but there is no statewide business license tax. Corporations and LLCs need to file an annual registration report with the Secretary of State, with a filing fee of $20 for corporations and $45 for LLCs.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Monthly, quarterly, or annually depending on business volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Montana

Tax Authority: Montana Department of Revenue (DOR)

Key Legislation

• Montana Code Annotated Title 15 (Taxation)
• Montana Corporate Income Tax Law
• Montana Sales and Use Tax Law (Montana does not have a general state sales tax)

Corporate Income Tax (CIT)

• Rate: 6.75% flat rate on taxable income.
• Tax Base: Corporations are taxed on Montana-sourced income. Multistate corporations apportion income using a three-factor formula based on property, payroll, and sales (with sales double-weighted).
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 7 years, no carryback is allowed.

Personal Income Tax (PIT)

• Rates: Progressive rates from 1% to 6.75% (2023):
  • 1% on income up to $3,400
  • 6.75% on income over $18,700
• Deductions and Allowances:
  • Standard deduction: $5,280 for single filers, $10,560 for joint filers (2023).
  • Montana allows itemized deductions for mortgage interest, charitable donations, and medical expenses.

Sales Tax

• State Rate: Montana does not impose a statewide sales tax.
• Combined Rate: N/A, as there is no state or local sales tax.

Other Taxes

• Property Tax: Montana’s property tax rates vary by county, with an average effective rate of 0.83% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.33 per gallon
  • Cigarette Tax: $1.70 per pack
  • Alcohol Tax: Varies by type (e.g., $9.83 per gallon on distilled spirits).
• Franchise Tax: Montana does not impose a general franchise tax.
• Business License Fees: Certain industries may require state or local business licensing. Corporations and LLCs are required to file an annual report with the Montana Secretary of State, with a filing fee of $20 for both LLCs and corporations.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 5th month following the close of the fiscal year (May 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: N/A (no state sales tax).
• Property Tax Filing: Administered locally, with deadlines varying by county.

Nebraska

Tax Authority: Nebraska Department of Revenue (DOR)

Key Legislation

• Nebraska Revised Statutes Chapter 77 (Taxation)
• Nebraska Corporate Income Tax Law
• Nebraska Sales and Use Tax Law

Corporate Income Tax (CIT)

• Rate:
  • 5.58% on the first $100,000 of taxable income
  • 7.25% on taxable income over $100,000
• Tax Base: Corporations are taxed on their Nebraska-sourced income. Multistate corporations apportion income using a single sales factor.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years, no carryback allowed.

Personal Income Tax (PIT)

• Rates: Progressive rates from 2.46% to 6.64% (2023):
  • 2.46% on income up to $3,340 (single filers) or $6,660 (joint filers)
  • 6.64% on income over $33,730 (single) or $67,460 (joint)
• Deductions and Allowances:
  • Standard deduction: Matches the federal deduction ($13,850 for single filers, $27,700 for joint filers in 2023).
  • Nebraska allows itemized deductions for mortgage interest, charitable donations, and medical expenses.

Sales Tax

• State Rate: 5.5%
• Combined Rate: Local jurisdictions may impose additional sales taxes, with combined rates ranging from 5.5% to 8%, depending on the locality.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 transactions into Nebraska annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect Nebraska sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within Nebraska are subject to sales tax.

Other Taxes

• Property Tax: Nebraska property tax rates vary by county, with an average effective rate of 1.61% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.287 per gallon
  • Cigarette Tax: $0.64 per pack
  • Alcohol Tax: Varies by type (e.g., $3.75 per gallon on distilled spirits).
• Franchise Tax: Nebraska does not impose a general franchise tax.
• Business License Fees: Certain industries may require state or local business licensing. Corporations and LLCs are required to file a biennial report with the Nebraska Secretary of State, with a filing fee of $25 for LLCs and $26 for corporations.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on sales volume. Returns are generally due by the 25th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Nevada

Tax Authority: Nevada Department of Taxation

Key Legislation

• Nevada Revised Statutes Title 32 (Revenue and Taxation)
• Nevada Commerce Tax Law
• Nevada Sales and Use Tax Law

Corporate Income Tax (CIT)

• N/A: Nevada does not impose a corporate income tax.

Personal Income Tax (PIT)

• N/A: Nevada does not impose a personal income tax on residents or non-residents.

Sales Tax

• State Rate: 6.85%
• Combined Rate: Local jurisdictions may impose additional sales taxes, leading to combined rates ranging from 6.85% to 8.375% depending on the locality.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 transactions into Nevada annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect Nevada sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within Nevada are subject to sales tax.

Other Taxes

• Property Tax: Nevada property tax rates vary by county, with an average effective rate of 0.60% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.33 per gallon
  • Cigarette Tax: $1.80 per pack
  • Alcohol Tax: Varies by type (e.g., $3.60 per gallon on distilled spirits).
• Commerce Tax: Nevada imposes a Commerce Tax on businesses with gross revenues over $4 million.
  • Rate: Varies by industry, ranging from 0.051% to 0.331% of gross revenue.
• Business License Fees: Nevada imposes an annual business license fee of $200 for most businesses, including LLCs and corporations. Corporations and LLCs must file an annual list of officers and directors with the Nevada Secretary of State and pay the filing fee of $150 for filing, plus the $200 business license fee.

Compliance

• Corporate Tax Filing Deadline: N/A (no corporate income tax).
• Personal Tax Filing Deadline: N/A (no personal income tax).
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on sales volume. Returns are generally due by the 30th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

New Hampshire

Tax Authority: New Hampshire Department of Revenue Administration (DRA)

Key Legislation

• New Hampshire Revised Statutes Title V (Taxation)
• New Hampshire Business Profits Tax (BPT) Law
• New Hampshire Sales and Use Tax Law

Corporate Income Tax (BPT)

• Rate: 7.5% on business profits (2023).
• Tax Base: Corporations are taxed on their New Hampshire-sourced profits. Businesses with gross receipts of less than $92,000 are exempt from the Business Profits Tax.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Business expenses are deductible, and Net Operating Losses (NOLs) can be carried forward for up to 10 years.

Business Enterprise Tax (BET)

• Rate: 0.55% on the enterprise value tax base, which is defined as compensation paid, interest paid, and dividends paid.
• Threshold: Businesses with enterprise value tax bases below $250,000 or gross receipts below $250,000 are exempt.

Personal Income Tax (PIT)

• N/A: New Hampshire does not impose a broad-based personal income tax.
• Interest and Dividends Tax: New Hampshire imposes a 5% tax on income earned from interest and dividends exceeding $2,400 ($4,800 for joint filers). This tax is being phased out and will be eliminated by 2027.

Sales Tax

• N/A: New Hampshire does not impose a general state sales tax.

Other Taxes

• Property Tax: New Hampshire’s property tax rates vary by municipality, with an average effective rate of 2.05% of assessed property value (one of the highest in the U.S.).
• Excise Taxes:
  • Gasoline Tax: $0.23 per gallon
  • Cigarette Tax: $1.78 per pack
  • Alcohol Tax: New Hampshire does not impose an excise tax on alcohol, but alcohol is sold through state-run stores.
• Franchise Tax: New Hampshire does not impose a general franchise tax.
• Business License Fees: No general statewide business license tax, but certain industries may require licensing. Corporations and LLCs must file an annual report with the New Hampshire Secretary of State. The filing fee is $100 for both corporations and LLCs.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns (BPT and BET) are due by the 15th day of the 3rd month following the close of the tax year (March 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15 for the interest and dividends tax, with extensions available.
• Sales Tax Filing: N/A (no sales tax).
• Property Tax Filing: Administered locally, with deadlines varying by municipality.

New Jersey

Tax Authority: New Jersey Division of Taxation

Key Legislation

• New Jersey Statutes Title 54 (Taxation)
• New Jersey Corporate Business Tax (CBT) Law
• New Jersey Sales and Use Tax Act

Corporate Income Tax (CBT)

• Rate: Progressive rates based on income:
  • 6.5% on income up to $50,000
  • 7.5% on income from $50,001 to $100,000
  • 9% on income over $100,000
  • 11.5% surcharge for corporations with net income over $1 million (until 2023, after which it is expected to return to 9%).
• Tax Base: Corporations are taxed on their New Jersey-sourced income. Multistate corporations apportion income using a single sales factor.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years.

Personal Income Tax (PIT)

• Rates: Progressive rates from 1.4% to 10.75% (2023):
  • 1.4% on income up to $20,000
  • 6.37% on income from $75,001 to $500,000
  • 10.75% on income over $1 million
• Deductions and Allowances:
  • Standard deduction: New Jersey does not provide a standard deduction.
  • Exemptions: $1,000 for dependents and $1,000 for taxpayers over 65 or blind.
  • Medical expenses over 2% of gross income are deductible, as are property taxes (up to $15,000).

Sales Tax

• State Rate: 6.625%
• Combined Rate: Local jurisdictions do not add additional sales taxes, so the state rate applies uniformly at 6.625%.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 transactions into New Jersey annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect New Jersey sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within New Jersey are subject to sales tax.

Other Taxes

• Property Tax: New Jersey has the highest property taxes in the U.S., with an average effective rate of 2.42% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.415 per gallon
  • Cigarette Tax: $2.70 per pack
  • Alcohol Tax: Varies by type (e.g., $5.50 per gallon on distilled spirits).
• Franchise Tax: New Jersey imposes a minimum CBT tax based on gross receipts. The minimum tax ranges from $500 to $2,000, depending on the size of the business.
• Business License Fees: No general statewide business license tax, though specific industries may require licensing. Corporations and LLCs must file an annual report with a filing fee of $500 for most entities.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on business volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by municipality.

New Mexico

Tax Authority: New Mexico Taxation and Revenue Department (TRD)

Key Legislation

• New Mexico Statutes Chapter 7 (Taxation)
• New Mexico Corporate Income Tax Law
• New Mexico Gross Receipts and Compensating Tax Act (instead of a traditional sales tax)

Corporate Income Tax (CIT)

• Rate: Progressive rates based on income:
  • 4.8% on income up to $500,000
  • 5.9% on income over $500,000
• Tax Base: Corporations are taxed on their New Mexico-sourced income. Multistate corporations apportion income using a three-factor formula based on property, payroll, and sales.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years, with no carryback allowed.

Personal Income Tax (PIT)

• Rates: Progressive rates from 1.7% to 5.9% (2023):
  • 1.7% on income up to $5,500 (single filers) or $8,000 (joint filers)
  • 5.9% on income over $210,000 (single) or $315,000 (joint)
• Deductions and Allowances:
  • Standard deduction: Matches the federal deduction ($13,850 for single filers, $27,700 for joint filers in 2023).
  • New Mexico allows itemized deductions for mortgage interest, charitable donations, and medical expenses.

Gross Receipts Tax (GRT)

• State Rate: 5.125%
• Combined Rate: Local jurisdictions may impose additional gross receipts taxes, resulting in combined rates ranging from 5.125% to 9.4375%.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 transactions into New Mexico annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect GRT on sales to New Mexico customers.
• International Transactions: Exports are exempt from GRT, while imports sold within New Mexico are subject to GRT.

Other Taxes

• Property Tax: New Mexico’s property tax rates vary by county, with an average effective rate of 0.80% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.17 per gallon
  • Cigarette Tax: $2.00 per pack
  • Alcohol Tax: Varies by type (e.g., $6.06 per gallon on distilled spirits).
• Franchise Tax: New Mexico does not impose a general franchise tax.
• Business License Fees: Certain industries may require state or local business licenses, but there is no general statewide business license tax. Corporations and LLCs are required to file an annual report with the New Mexico Secretary of State. The filing fee is $25 for both corporations and LLCs.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Gross Receipts Tax Filing: Filing is required monthly, quarterly, or annually depending on business volume. Returns are generally due by the 25th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

New York

Tax Authority: New York State Department of Taxation and Finance

Key Legislation

• New York Tax Law
• New York Corporate Franchise Tax Law
• New York Sales and Use Tax Law

Corporate Income Tax (Franchise Tax)

• Rate:
  • 6.5% flat rate on corporate income for most corporations.
  • A surcharge applies for businesses with gross receipts over $5 million in New York City.
• Tax Base: Corporations are taxed on their New York-sourced income. Multistate corporations apportion income using a single sales factor.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years.

Personal Income Tax (PIT)

• Rates: Progressive rates from 4% to 10.9% (2023):
  • 4% on income up to $8,500 (single filers) or $17,150 (joint filers)
  • 10.9% on income over $25 million (single or joint filers)
• Deductions and Allowances:
  • Standard deduction: $8,000 for single filers, $16,050 for joint filers.
  • Itemized deductions are allowed for mortgage interest, charitable donations, and medical expenses, among other categories.

Sales Tax

• State Rate: 4%
• Combined Rate: Local jurisdictions, including cities and counties, may impose additional sales taxes, resulting in combined rates ranging from 7% to 8.875%.
• Nexus Rules: Economic nexus applies if a business exceeds $500,000 in sales and 100 transactions into New York annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect New York sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within New York are subject to sales tax.

Other Taxes

• Property Tax: Property tax rates vary by locality, with an average effective rate of 1.72% of assessed property value. New York City has its own property tax system, with different rates and classifications.
• Excise Taxes:
  • Gasoline Tax: $0.33 per gallon
  • Cigarette Tax: $4.35 per pack (New York City adds another $1.50).
  • Alcohol Tax: Varies by type (e.g., $6.44 per gallon on distilled spirits).
• Franchise Tax:
  • Corporations must pay the corporate franchise tax, based on either income, capital, or a fixed minimum depending on the company’s circumstances. The tax rate ranges from $25 to $200,000, based on the corporation’s receipts.
  • LLCs must file an annual report with a fee of $9 for single-member LLCs or $25 for multi-member LLCs.
• Business License Fees: Specific industries require licensing at the state or city level.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on business volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

North Carolina

Tax Authority: North Carolina Department of Revenue (NCDOR)

Key Legislation

• North Carolina General Statutes Chapter 105 (Taxation)
• North Carolina Corporate Income Tax Law
• North Carolina Sales and Use Tax Act

Corporate Income Tax (CIT)

• Rate: 2.5% flat rate on taxable income (2023), one of the lowest in the U.S.
• Tax Base: Corporations are taxed on their North Carolina-sourced income. Multistate corporations apportion income using a single sales factor.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years.

Personal Income Tax (PIT)

• Rate: 4.75% flat rate on all income (2023).
• Deductions and Allowances:
  • Standard deduction: $12,750 for single filers, $25,500 for joint filers.
  • Itemized deductions are allowed for mortgage interest, charitable donations, and medical expenses, among other categories.

Sales Tax

• State Rate: 4.75%
• Combined Rate: Local jurisdictions may impose additional sales taxes, resulting in combined rates ranging from 6.75% to 7.5% depending on the locality.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 transactions into North Carolina annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect North Carolina sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within North Carolina are subject to sales tax.

Other Taxes

• Property Tax: Property tax rates in North Carolina vary by county, with an average effective rate of 0.84% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.385 per gallon
  • Cigarette Tax: $0.45 per pack
  • Alcohol Tax: Varies by type (e.g., $3.75 per gallon on distilled spirits).
• Franchise Tax:
  • Corporations in North Carolina must pay a franchise tax based on net worth or capital.
  • Rate: $1.50 per $1,000 of taxable net worth, with a minimum tax of $200.
  • LLCs must file an annual report with the North Carolina Secretary of State, with a filing fee of $200.
• Business License Fees: Some industries require state or local business licenses.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on business volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

North Dakota

Tax Authority: North Dakota Office of State Tax Commissioner

Key Legislation

• North Dakota Century Code Title 57 (Taxation)
• North Dakota Corporate Income Tax Law
• North Dakota Sales and Use Tax Law

Corporate Income Tax (CIT)

• Rate:
  • 1.41% on income up to $25,000
  • 3.55% on income between $25,001 and $50,000
  • 4.31% on income over $50,000
• Tax Base: Corporations are taxed on their North Dakota-sourced income. Multistate corporations apportion income using a three-factor formula based on property, payroll, and sales, with double-weighted sales.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years.

Personal Income Tax (PIT)

• Rates: Progressive rates from 1.10% to 2.90% (2023):
  • 1.10% on income up to $40,125 (single filers) or $67,250 (joint filers)
  • 2.90% on income over $445,000 (single) or $501,200 (joint)
• Deductions and Allowances:
  • Standard deduction: Matches the federal standard deduction ($13,850 for single filers, $27,700 for joint filers in 2023).
  • North Dakota allows itemized deductions for mortgage interest, charitable donations, and medical expenses.

Sales Tax

• State Rate: 5%
• Combined Rate: Local jurisdictions may impose additional sales taxes, resulting in combined rates ranging from 5% to 8.5%, depending on the locality.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 transactions into North Dakota annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect North Dakota sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within North Dakota are subject to sales tax.

Other Taxes

• Property Tax: North Dakota’s property tax rates vary by county, with an average effective rate of 1.01% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.23 per gallon
  • Cigarette Tax: $0.44 per pack (one of the lowest in the U.S.)
  • Alcohol Tax: Varies by type (e.g., $2.50 per gallon on distilled spirits).
• Franchise Tax: North Dakota does not impose a general franchise tax.
• Business License Fees: Certain industries may require state or local business licenses. Corporations and LLCs are required to file an annual report with the North Dakota Secretary of State, with a filing fee of $50.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on business volume. Returns are generally due by the 25th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Ohio

Tax Authority: Ohio Department of Taxation

Key Legislation

• Ohio Revised Code Title 57 (Taxation)
• Ohio Commercial Activity Tax (CAT) Law
• Ohio Sales and Use Tax Law

Corporate Income Tax (CIT)

• N/A: Ohio does not impose a traditional corporate income tax. Instead, it imposes the Commercial Activity Tax (CAT).

Commercial Activity Tax (CAT)

• Rate:
  • 0.26% on gross receipts exceeding $1 million.
  • Businesses with receipts between $150,000 and $1 million pay a flat annual fee of $150.
• Tax Base: The CAT is a gross receipts tax, applied to businesses operating in Ohio. It applies to most businesses regardless of their structure (corporation, LLC, partnership, etc.).

Personal Income Tax (PIT)

• Rates: Progressive rates from 0% to 3.99% (2023):
  • 0% on income up to $26,050
  • 3.99% on income over $115,300
• Deductions and Allowances:
  • Standard deduction: $1,850 for single filers, $2,300 for joint filers.
  • Ohio allows deductions for retirement income, tuition credits, and medical expenses, among other categories.

Sales Tax

• State Rate: 5.75%
• Combined Rate: Local jurisdictions may impose additional sales taxes, resulting in combined rates ranging from 6.5% to 8% depending on the locality.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 transactions into Ohio annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect Ohio sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within Ohio are subject to sales tax.

Other Taxes

• Property Tax: Ohio’s property tax rates vary by county, with an average effective rate of 1.48% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.385 per gallon
  • Cigarette Tax: $1.60 per pack
  • Alcohol Tax: Varies by type (e.g., $3.38 per gallon on distilled spirits).
• Franchise Tax: Ohio previously imposed a franchise tax, but it was phased out after 2010.
• Business License Fees: Some industries require state or local business licenses.

Compliance

• Corporate Tax Filing Deadline: CAT returns are due quarterly or annually, depending on gross receipts.
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Monthly, quarterly, or annually depending on business volume. Returns are generally due by the 23rd of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Oklahoma

Tax Authority: Oklahoma Tax Commission

Key Legislation

• Oklahoma Statutes Title 68 (Revenue and Taxation)
• Oklahoma Corporate Income Tax Law
• Oklahoma Sales and Use Tax Law

Corporate Income Tax (CIT)

• Rate: 4% flat rate on taxable income.
• Tax Base: Corporations are taxed on Oklahoma-sourced income. Multistate corporations apportion income using a three-factor formula based on property, payroll, and sales (double-weighted sales).
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years.

Personal Income Tax (PIT)

• Rates: Progressive rates from 0.25% to 4.75% (2023):
  • 0.25% on income up to $1,000 (single filers) or $2,000 (joint filers)
  • 4.75% on income over $7,200 (single) or $12,200 (joint)
• Deductions and Allowances:
  • Standard deduction: Matches the federal standard deduction ($13,850 for single filers, $27,700 for joint filers in 2023).
  • Oklahoma allows itemized deductions for mortgage interest, charitable donations, and medical expenses.

Sales Tax

• State Rate: 4.5%
• Combined Rate: Local jurisdictions may impose additional sales taxes, with combined rates ranging from 4.5% to 11% depending on the locality.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 transactions into Oklahoma annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect Oklahoma sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within Oklahoma are subject to sales tax.

Other Taxes

• Property Tax: Oklahoma’s property tax rates vary by county, with an average effective rate of 0.87% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.20 per gallon
  • Cigarette Tax: $2.03 per pack
  • Alcohol Tax: Varies by type (e.g., $5.56 per gallon on distilled spirits).
• Franchise Tax: Oklahoma imposes a franchise tax on corporations based on capital employed in the state.
  • Rate: $1.25 per $1,000 of capital employed, with a minimum tax of $25.
• Business License Fees: Certain industries may require state or local business licenses. Corporations and LLCs must file an annual report with the Oklahoma Secretary of State, with a filing fee of $25.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on sales volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Oregon

Tax Authority: Oregon Department of Revenue

Key Legislation

• Oregon Revised Statutes Title 29 (Revenue and Taxation)
• Oregon Corporate Activity Tax (CAT) Law
• Oregon Sales and Use Tax Law (Oregon does not impose a general sales tax)

Corporate Income Tax (CIT)

• Rate: Oregon does not impose a traditional corporate income tax but has the Corporate Activity Tax (CAT).
• Corporate Activity Tax (CAT):
  • Rate: 0.57% on gross receipts exceeding $1 million, with a flat $250 fee on the first $1 million.
  • Tax Base: The CAT applies to gross receipts from business activities in Oregon.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • There is no deduction for business expenses under the CAT.

Personal Income Tax (PIT)

• Rates: Progressive rates from 4.75% to 9.9% (2023):
  • 4.75% on income up to $3,850 (single filers) or $7,700 (joint filers)
  • 9.9% on income over $250,000 (single) or $500,000 (joint)
• Deductions and Allowances:
  • Standard deduction: $2,420 for single filers, $4,845 for joint filers.
  • Oregon allows itemized deductions for mortgage interest, charitable donations, and medical expenses.

Sales Tax

• N/A: Oregon does not impose a general state or local sales tax.

Other Taxes

• Property Tax: Oregon’s property tax rates vary by county, with an average effective rate of 0.97% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.38 per gallon
  • Cigarette Tax: $3.33 per pack
  • Alcohol Tax: Varies by type (e.g., $2.60 per gallon on distilled spirits).
• Franchise Tax: Oregon does not impose a general franchise tax.
• Business License Fees: Certain industries require state or local business licensing. Corporations and LLCs required to file an annual report with the Oregon Secretary of State. The filing fee is $100 for both LLCs and corporations.

Compliance

• Corporate Tax Filing Deadline: CAT returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year businesses).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: N/A (no state or local sales tax).
• Property Tax Filing: Administered locally, with deadlines varying by county.

Pennsylvania

Tax Authority: Pennsylvania Department of Revenue

Key Legislation

• Pennsylvania Consolidated Statutes Title 72 (Taxation and Fiscal Affairs)
• Pennsylvania Corporate Net Income Tax Law
• Pennsylvania Sales and Use Tax Law

Corporate Income Tax (CIT)

• Rate: 8.99% flat rate on taxable income (as of 2023).
• Tax Base: Corporations are taxed on their Pennsylvania-sourced income. Multistate corporations apportion income using a single sales factor.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years, with no carryback allowed.

Personal Income Tax (PIT)

• Rate: 3.07% flat rate on all personal income.
• Deductions and Allowances:
  • Pennsylvania offers limited deductions for certain types of income, such as retirement income and social security benefits, but does not provide a standard deduction or itemized deductions.
  • Exemptions apply to certain categories like active duty military pay and education savings contributions.

Sales Tax

• State Rate: 6%
• Combined Rate: Local jurisdictions may impose additional sales taxes, with a combined rate of up to 8% in some areas, including Philadelphia and Allegheny County.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales into Pennsylvania annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect Pennsylvania sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within Pennsylvania are subject to sales tax.

Other Taxes

• Property Tax: Pennsylvania’s property tax rates vary by locality, with an average effective rate of 1.58% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.576 per gallon (one of the highest in the U.S.)
  • Cigarette Tax: $2.60 per pack
  • Alcohol Tax: Varies by type (e.g., $7.37 per gallon on distilled spirits).
• Franchise Tax: Pennsylvania does not impose a general franchise tax, but the Capital Stock/Franchise Tax was phased out in 2016.
• Business License Fees: Some industries require state or local business licenses, but there is no general business license tax. All Corporations and LLCs must file annual reports and pay an annual fee for certain licenses or business activities.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on sales volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Rhode Island

Tax Authority: Rhode Island Division of Taxation

Key Legislation

• Rhode Island General Laws Title 44 (Taxation)
• Rhode Island Corporate Income Tax Law
• Rhode Island Sales and Use Tax Law

Corporate Income Tax (CIT)

• Rate: 7% flat rate on taxable income.
• Tax Base: Corporations are taxed on their Rhode Island-sourced income. Multistate corporations apportion income using a single sales factor.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years, but no carryback is allowed.

Personal Income Tax (PIT)

• Rates: Progressive rates from 3.75% to 5.99% (2023):
  • 3.75% on income up to $69,000
  • 4.75% on income between $69,001 and $155,050
  • 5.99% on income over $155,050
• Deductions and Allowances:
  • Standard deduction: $9,300 for single filers, $18,600 for joint filers.
  • Rhode Island allows itemized deductions for mortgage interest, charitable donations, and medical expenses.

Sales Tax

• State Rate: 7%
• Combined Rate: Local jurisdictions do not impose additional sales taxes, so the state rate applies uniformly at 7%.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 transactions into Rhode Island annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect Rhode Island sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within Rhode Island are subject to sales tax.

Other Taxes

• Property Tax: Rhode Island’s property tax rates vary by locality, with an average effective rate of 1.53% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.35 per gallon
  • Cigarette Tax: $4.25 per pack (one of the highest in the U.S.)
  • Alcohol Tax: Varies by type (e.g., $5.40 per gallon on distilled spirits).
• Franchise Tax: Rhode Island imposes a minimum franchise tax of $400 on most businesses, regardless of income.
• Business License Fees: Some industries require specific state or local business licenses, but there is no general business license tax. Corporations and LLCs are required to file an annual report and pay a fee of $50 plus the $400 minimum franchise tax.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on sales volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by municipality.

South Carolina

Tax Authority: South Carolina Department of Revenue (SCDOR)

Key Legislation

• South Carolina Code of Laws Title 12 (Taxation)
• South Carolina Corporate Income Tax Law
• South Carolina Sales and Use Tax Law

Corporate Income Tax (CIT)

• Rate: 5% flat rate on taxable income.
• Tax Base: Corporations are taxed on their South Carolina-sourced income. Multistate corporations apportion income using a single sales factor.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years.

Personal Income Tax (PIT)

• Rates: Progressive rates from 0% to 6.5% (2023):
  • 0% on income up to $3,200 (single filers) or $6,400 (joint filers)
  • 6.5% on income over $16,040 (single) or $32,080 (joint)
• Deductions and Allowances:
  • Standard deduction: Matches the federal deduction ($13,850 for single filers, $27,700 for joint filers in 2023).
  • South Carolina allows itemized deductions for mortgage interest, charitable donations, and medical expenses.

Sales Tax

• State Rate: 6%
• Combined Rate: Local jurisdictions may impose additional sales taxes, with combined rates ranging from 6% to 9% depending on the locality.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 transactions into South Carolina annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect South Carolina sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within South Carolina are subject to sales tax.

Other Taxes

• Property Tax: South Carolina’s property tax rates vary by county, with an average effective rate of 0.56% of assessed property value (among the lowest in the U.S.).
• Excise Taxes:
  • Gasoline Tax: $0.28 per gallon
  • Cigarette Tax: $0.57 per pack
  • Alcohol Tax: Varies by type (e.g., $2.72 per gallon on distilled spirits).
• Franchise Tax: South Carolina does not impose a general franchise tax.
• Business License Fees: Some industries require state or local business licenses, but there is no general statewide business license tax. Corporations and LLCs are required to file an annual report with the South Carolina Secretary of State, with a filing fee of $25 for most entities.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on sales volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

South Dakota

Tax Authority: South Dakota Department of Revenue

Key Legislation

• South Dakota Codified Laws Title 10 (Taxation)
• South Dakota Sales and Use Tax Law

Corporate Income Tax (CIT)

• N/A: South Dakota does not impose a corporate income tax.

Personal Income Tax (PIT)

• N/A: South Dakota does not impose a personal income tax on residents or non-residents.

Sales Tax

• State Rate: 4.5%
• Combined Rate: Local jurisdictions may impose additional sales taxes, with combined rates ranging from 4.5% to 7.5%, depending on the locality.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 transactions into South Dakota annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect South Dakota sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within South Dakota are subject to sales tax.

Other Taxes

• Property Tax: South Dakota’s property tax rates vary by county, with an average effective rate of 1.22% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.30 per gallon
  • Cigarette Tax: $1.53 per pack
  • Alcohol Tax: Varies by type (e.g., $3.93 per gallon on distilled spirits).
• Franchise Tax: South Dakota does not impose a general franchise tax.
• Business License Fees: Certain industries may require state or local business licenses, but there is no general business license tax. Corporations and LLCs must file an annual report with the South Dakota Secretary of State, with a filing fee of $50 for LLCs and corporations.

Compliance

• Corporate Tax Filing Deadline: N/A (no corporate income tax).
• Personal Tax Filing Deadline: N/A (no personal income tax).
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on business volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Tennessee

Tax Authority: Tennessee Department of Revenue

Key Legislation

• Tennessee Code Annotated Title 67 (Taxation)
• Tennessee Franchise and Excise Tax Law
• Tennessee Sales and Use Tax Law

Corporate Income Tax (Excise Tax)

• Rate: 6.5% on taxable income.
• Tax Base: Corporations are taxed on Tennessee-sourced income. Multistate corporations apportion income using a three-factor formula based on property, payroll, and sales, with a double-weighted sales factor.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 15 years.

Personal Income Tax (PIT)

• N/A: Tennessee does not impose a general personal income tax on wages.
• Hall Income Tax (repealed): Tennessee previously taxed interest and dividends income, but the Hall Income Tax was fully repealed in 2021.

Sales Tax

• State Rate: 7%
• Combined Rate: Local jurisdictions may impose additional sales taxes, with combined rates ranging from 7% to 9.75% depending on the locality.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 transactions into Tennessee annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect Tennessee sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within Tennessee are subject to sales tax.

Other Taxes

• Property Tax: Tennessee’s property tax rates vary by county, with an average effective rate of 0.68% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.27 per gallon
  • Cigarette Tax: $0.62 per pack
  • Alcohol Tax: Varies by type (e.g., $4.40 per gallon on distilled spirits).
• Franchise Tax: 0.25% of the greater of net worth or the book value of real and tangible personal property in Tennessee. The minimum franchise tax is $10.
• Business License Fees: Most businesses are required to obtain a business license from the local county clerk’s office, with fees depending on the location and size of the business. Corporations and LLCs are equired to file an annual report with the Tennessee Secretary of State, with a filing fee of $300 for most entities, plus the franchise tax based on net worth.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns (for franchise and excise taxes) are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: N/A (no personal income tax).
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on sales volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Texas

Tax Authority: Texas Comptroller of Public Accounts

Key Legislation

• Texas Tax Code Title 2 (State Taxation)
• Texas Franchise Tax Law
• Texas Sales and Use Tax Law

Corporate Income Tax (CIT)

• N/A: Texas does not impose a traditional corporate income tax. Instead, it imposes the Franchise Tax.

Franchise Tax

• Rate:
  • 0.375% of taxable margin for entities primarily engaged in retail or wholesale trade.
  • 0.75% of taxable margin for most other businesses.
  • Businesses with less than $1.23 million in total revenue are exempt from paying the franchise tax.
• Tax Base: Taxable margin is calculated as the lesser of total revenue minus cost of goods sold, total revenue minus compensation, or 70% of total revenue.

Personal Income Tax (PIT)

• N/A: Texas does not impose a personal income tax on wages or investment income.

Sales Tax

• State Rate: 6.25%
• Combined Rate: Local jurisdictions may impose additional sales taxes, with combined rates ranging from 6.25% to 8.25% depending on the locality.
• Nexus Rules: Economic nexus applies if a business exceeds $500,000 in sales into Texas annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect Texas sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within Texas are subject to sales tax.

Other Taxes

• Property Tax: Texas does not impose a state property tax, but local governments levy property taxes with an average effective rate of 1.81%, one of the highest in the U.S.
• Excise Taxes:
  • Gasoline Tax: $0.20 per gallon
  • Cigarette Tax: $1.41 per pack
  • Alcohol Tax: Varies by type (e.g., $2.40 per gallon on distilled spirits).
• Business License Fees: Texas does not require a general business license, but specific industries may require state or local licensing. Corporations and LLCs are required to file an annual franchise tax report with the Texas Comptroller of Public Accounts. The filing fee varies depending on the entity’s total revenue and activity, with businesses exempt if revenue is below the threshold ($1.23 million).

Compliance

• Corporate Tax Filing Deadline: Franchise tax returns are due annually by May 15 for calendar-year taxpayers.
• Personal Tax Filing Deadline: N/A (no personal income tax).
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on business volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Utah

Tax Authority: Utah State Tax Commission

Key Legislation

• Utah Code Title 59 (Revenue and Taxation)
• Utah Corporate Income Tax Law
• Utah Sales and Use Tax Law

Corporate Income Tax (CIT)

• Rate: 4.85% flat rate on taxable income.
• Tax Base: Corporations are taxed on their Utah-sourced income. Multistate corporations apportion income using a single sales factor.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 15 years, with no carryback allowed.

Personal Income Tax (PIT)

• Rate: 4.85% flat rate on all personal income (2023).
• Deductions and Allowances:
  • Standard deduction: Utah does not provide a standard deduction, but it offers personal exemptions based on federal allowances.
  • Utah allows for certain tax credits and deductions, such as the retirement tax credit and deductions for medical expenses.

Sales Tax

• State Rate: 4.85%
• Combined Rate: Local jurisdictions may impose additional sales taxes, with combined rates ranging from 6.1% to 9.05% depending on the locality.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 transactions into Utah annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect Utah sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within Utah are subject to sales tax.

Other Taxes

• Property Tax: Utah’s property tax rates vary by county, with an average effective rate of 0.58% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.311 per gallon
  • Cigarette Tax: $1.70 per pack
  • Alcohol Tax: Varies by type (e.g., $12.80 per gallon on distilled spirits).
• Franchise Tax: Utah does not impose a general franchise tax.
• Business License Fees: Certain industries may require state or local business licenses, but there is no general business license tax. Corporations and LLCs must file an annual report with the Utah Division of Corporations and Commercial Code. The filing fee is $20 for both LLCs and corporations.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on sales volume. Returns are generally due by the 30th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Vermont

Tax Authority: Vermont Department of Taxes

Key Legislation

• Vermont Statutes Title 32 (Taxation and Finance)
• Vermont Corporate Income Tax Law
• Vermont Sales and Use Tax Law

Corporate Income Tax (CIT)

• Rate: Progressive rates based on taxable income:
  • 6% on the first $10,000
  • 7% on income from $10,001 to $25,000
  • 8.5% on income over $25,000
• Tax Base: Corporations are taxed on Vermont-sourced income. Multistate corporations apportion income using a three-factor formula based on property, payroll, and sales, with double-weighted sales.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 10 years.

Personal Income Tax (PIT)

• Rates: Progressive rates from 3.35% to 8.75% (2023):
  • 3.35% on income up to $42,150 (single filers) or $70,350 (joint filers)
  • 8.75% on income over $204,000 (single) or $248,350 (joint)
• Deductions and Allowances:
  • Standard deduction: Matches the federal deduction ($13,850 for single filers, $27,700 for joint filers in 2023).
  • Vermont allows itemized deductions for mortgage interest, charitable donations, and medical expenses.

Sales Tax

• State Rate: 6%
• Combined Rate: Local jurisdictions may impose additional sales taxes, with combined rates reaching 7% in some areas.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 transactions into Vermont annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect Vermont sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within Vermont are subject to sales tax.

Other Taxes

• Property Tax: Vermont’s property tax rates vary by municipality, with an average effective rate of 1.76% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.31 per gallon
  • Cigarette Tax: $3.08 per pack
  • Alcohol Tax: Varies by type (e.g., $7.71 per gallon on distilled spirits).
• Franchise Tax: Vermont does not impose a general franchise tax.
• Business License Fees: Some industries require specific state or local business licenses, but there is no general business license tax. Corporations and LLCs are required to file an annual report with the Vermont Secretary of State. The filing fee is $35 for LLCs and corporations.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on sales volume. Returns are generally due by the 25th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by municipality.

Virginia

Tax Authority: Virginia Department of Taxation

Key Legislation

• Virginia Code Title 58.1 (Taxation)
• Virginia Corporate Income Tax Law
• Virginia Sales and Use Tax Law

Corporate Income Tax (CIT)

• Rate: 6% flat rate on taxable income.
• Tax Base: Corporations are taxed on Virginia-sourced income. Multistate corporations apportion income using a three-factor formula based on property, payroll, and sales, with double-weighted sales.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years, no carryback allowed.

Personal Income Tax (PIT)

• Rates: Progressive rates from 2% to 5.75% (2023):
  • 2% on income up to $3,000
  • 5.75% on income over $17,000
• Deductions and Allowances:
  • Standard deduction: $9,000 for single filers, $18,000 for joint filers (2023).
  • Virginia allows itemized deductions for mortgage interest, charitable donations, and medical expenses.

Sales Tax

• State Rate: 4.3%
• Combined Rate: Local jurisdictions may impose additional sales taxes, with combined rates ranging from 5.3% to 7% depending on the locality.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 transactions into Virginia annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect Virginia sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within Virginia are subject to sales tax.

Other Taxes

• Property Tax: Virginia’s property tax rates vary by county, with an average effective rate of 0.80% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.28 per gallon
  • Cigarette Tax: $0.60 per pack
  • Alcohol Tax: Varies by type (e.g., $19.86 per gallon on distilled spirits).
• Franchise Tax: Virginia does not impose a general franchise tax.
• Business License Fees: Many localities in Virginia impose a business, professional, and occupational license (BPOL) tax on businesses operating within their jurisdiction. Corporations and LLCs must file an annual report with the Virginia State Corporation Commission. The filing fee is $50 for LLCs and corporations.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: May 1, with extensions available.
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on sales volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Washington

Tax Authority: Washington Department of Revenue

Key Legislation

• Revised Code of Washington Title 82 (Excise Taxes)
• Washington Business and Occupation (B&O) Tax Law
• Washington Sales and Use Tax Law

Corporate Income Tax (CIT)

• N/A: Washington does not impose a traditional corporate income tax. Instead, it imposes the Business and Occupation (B&O) Tax.

Business and Occupation (B&O) Tax

• Rate:
  • Varies by business classification. Examples:
    • 0.471% for retail sales
    • 1.5% for service and other activities
  • B&O tax is based on gross receipts, not net income.
• Tax Base: The B&O tax applies to gross income earned in Washington, regardless of profit or loss.

Personal Income Tax (PIT)

• N/A: Washington does not impose a personal income tax on wages or investment income.

Sales Tax

• State Rate: 6.5%
• Combined Rate: Local jurisdictions may impose additional sales taxes, with combined rates ranging from 7% to 10.5% depending on the locality.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 transactions into Washington annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect Washington sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within Washington are subject to sales tax.

Other Taxes

• Property Tax: Washington’s property tax rates vary by county, with an average effective rate of 0.93% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.494 per gallon
  • Cigarette Tax: $3.025 per pack
  • Alcohol Tax: Varies by type (e.g., $3.7708 per liter on spirits sold at retail).
• Franchise Tax: Washington does not impose a general franchise tax.
• Business License Fees: Washington businesses are required to obtain a state business license, with fees starting at $19. Certain industries may require additional state or local licensing. Corporations and LLCs must file an annual report with the Washington Secretary of State. The filing fee is $60 for both LLCs and corporations.

Compliance

• Corporate Tax Filing Deadline: N/A (no corporate income tax).
• Personal Tax Filing Deadline: N/A (no personal income tax).
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on sales volume. Returns are generally due by the 25th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

West Virginia

Tax Authority: West Virginia State Tax Department

Key Legislation

• West Virginia Code Chapter 11 (Taxation)
• West Virginia Corporate Income Tax Law
• West Virginia Sales and Use Tax Law

Corporate Income Tax (CIT)

• Rate: 6.5% flat rate on taxable income.
• Tax Base: Corporations are taxed on West Virginia-sourced income. Multistate corporations apportion income using a three-factor formula based on property, payroll, and sales.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years.

Personal Income Tax (PIT)

• Rates: Progressive rates from 3% to 6.5% (2023):
  • 3% on income up to $10,000
  • 6.5% on income over $60,000
• Deductions and Allowances:
  • Standard deduction: Matches the federal deduction ($13,850 for single filers, $27,700 for joint filers in 2023).
  • West Virginia allows itemized deductions for mortgage interest, charitable donations, and medical expenses.

Sales Tax

• State Rate: 6%
• Combined Rate: Local jurisdictions may impose additional sales taxes, with combined rates ranging from 6% to 7%.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 transactions into West Virginia annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect West Virginia sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within West Virginia are subject to sales tax.

Other Taxes

• Property Tax: West Virginia’s property tax rates vary by county, with an average effective rate of 0.58% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.357 per gallon
  • Cigarette Tax: $1.20 per pack
  • Alcohol Tax: Varies by type (e.g., $1.10 per gallon on wine).
• Franchise Tax: West Virginia does not impose a general franchise tax.
• Business License Fees: Businesses may require specific state or local business licenses, but there is no general business license tax. Corporations and LLCs are required to file an annual report with the West Virginia Secretary of State. The filing fee is $25 for LLCs and corporations.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on sales volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Wisconsin

Tax Authority: Wisconsin Department of Revenue

Key Legislation

• Wisconsin Statutes Chapter 71 (Income and Franchise Taxes)
• Wisconsin Corporate Income Tax Law
• Wisconsin Sales and Use Tax Law

Corporate Income Tax (CIT)

• Rate: 7.9% flat rate on taxable income.
• Tax Base: Corporations are taxed on Wisconsin-sourced income. Multistate corporations apportion income using a single sales factor.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years, no carryback allowed.

Personal Income Tax (PIT)

• Rates: Progressive rates from 3.54% to 7.65% (2023):
  • 3.54% on income up to $13,810 (single filers) or $18,420 (joint filers)
  • 7.65% on income over $304,170 (single) or $405,550 (joint)
• Deductions and Allowances:
  • Standard deduction: Varies based on income and filing status, phased out at higher income levels.
  • Wisconsin allows itemized deductions for mortgage interest, charitable donations, and medical expenses.

Sales Tax

• State Rate: 5%
• Combined Rate: Local jurisdictions may impose additional sales taxes, with combined rates ranging from 5% to 5.6% depending on the locality.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 transactions into Wisconsin annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect Wisconsin sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within Wisconsin are subject to sales tax.

Other Taxes

• Property Tax: Wisconsin’s property tax rates vary by county, with an average effective rate of 1.68% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.329 per gallon
  • Cigarette Tax: $2.52 per pack
  • Alcohol Tax: Varies by type (e.g., $3.25 per gallon on distilled spirits).
• Franchise Tax: Wisconsin imposes a franchise tax at the same rate as the corporate income tax (7.9%).
• Business License Fees: Certain industries may require state or local business licenses. Corporations and LLCs must file an annual report with the Wisconsin Department of Financial Institutions. The filing fee is $25 for LLCs and corporations.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on sales volume. Returns are generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

Wyoming

Tax Authority: Wyoming Department of Revenue

Key Legislation

• Wyoming Statutes Title 39 (Taxation and Revenue)
• Wyoming Sales and Use Tax Law

Corporate Income Tax (CIT)

• N/A: Wyoming does not impose a corporate income tax.

Personal Income Tax (PIT)

• N/A: Wyoming does not impose a personal income tax on wages or investment income.

Sales Tax

• State Rate: 4%
• Combined Rate: Local jurisdictions may impose additional sales taxes, with combined rates ranging from 4% to 6% depending on the locality.
• Nexus Rules: Economic nexus applies if a business exceeds $100,000 in sales or 200 transactions into Wyoming annually.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect Wyoming sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within Wyoming are subject to sales tax.

Other Taxes

• Property Tax: Wyoming’s property tax rates vary by county, with an average effective rate of 0.61% of assessed property value, among the lowest in the U.S.
• Excise Taxes:
  • Gasoline Tax: $0.24 per gallon
  • Cigarette Tax: $0.60 per pack
  • Alcohol Tax: Varies by type (e.g., $0.02 per gallon on wine, $0.72 per gallon on distilled spirits).
• Franchise Tax: Wyoming does not impose a general franchise tax.
• Business License Fees: Wyoming requires certain businesses to obtain specific state and local licenses, but there is no general business license tax. Corporations and LLCs must file an annual report and a license tax based on a business’s total assets located in Wyoming. The minimum license tax is $50, or $0.0002 per dollar of assets, whichever is greater.

Compliance

• Corporate Tax Filing Deadline: N/A (no corporate income tax).
• Personal Tax Filing Deadline: N/A (no personal income tax).
• Sales Tax Filing: Filing is required monthly, quarterly, or annually depending on sales volume. Returns are generally due by the 15th of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by county.

III. Non-State US Territories

Puerto Rico

Tax Authority: Puerto Rico Department of Treasury (Hacienda)

Key Legislation

• Puerto Rico Internal Revenue Code of 2011 (Código de Rentas Internas de Puerto Rico de 2011)
• Puerto Rico Act 20 (Export Services Act)
• Puerto Rico Act 22 (Individual Investors Act)
• Puerto Rico Sales and Use Tax Law

Corporate Income Tax (CIT)

• Rates:
  • Normal Tax: 18.5% on taxable income.
  • Additional Surtax: Progressive rates from 5% to 19% on income over $25,000.
  • Maximum Combined Rate: Up to 37.5% on the highest income brackets.
• Tax Base: Corporations are taxed on their Puerto Rico-sourced income.
• Incentives:
  • Act 20: Provides a 4% tax rate for companies offering export services.
  • Act 73: Offers incentives for manufacturing companies and certain service providers.
  • Net Operating Losses (NOLs): Can be carried forward for up to 10 years.

Personal Income Tax (PIT)

• Rates: Progressive rates from 7% to 33%:
  • 7% on income up to $25,000
  • 33% on income over $61,500
• Deductions and Allowances:
  • Standard deduction: $3,500 for single filers, $7,000 for joint filers.
  • Puerto Rico allows itemized deductions for mortgage interest, charitable donations, and medical expenses.
  • Act 22: Provides 100% tax exemption on capital gains, dividends, and interest income for new residents who establish bona fide residence in Puerto Rico.

Sales and Use Tax (SUT)

• State Rate: 11.5%
  • 10.5% for the central government
  • 1% for municipalities
• Nexus Rules: Economic nexus applies to businesses selling goods or services into Puerto Rico that exceed $100,000 in annual sales or 200 transactions.
• Interstate Transactions: Out-of-state sellers meeting the nexus threshold must collect Puerto Rico’s sales tax.
• International Transactions: Exports are exempt from sales tax, while imports sold within Puerto Rico are subject to the sales tax.

Other Taxes

• Property Tax: Property taxes in Puerto Rico vary by municipality, with effective rates averaging around 1.03% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.16 per gallon
  • Cigarette Tax: $5.10 per pack
  • Alcohol Tax: Varies by type (e.g., $6.50 per gallon on distilled spirits).
• Franchise Tax: Puerto Rico does not impose a general franchise tax, but certain industries may be subject to special licensing fees.
• Business License Fees: Businesses must obtain a municipal license, with fees varying by the type of business and location. Corporations and LLCs are required to file an annual report with the Puerto Rico Department of State. The filing fee is $150 for LLCs and corporations.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Sales Tax Filing: Monthly or quarterly filings depending on the business volume, with returns generally due by the 20th of the month following the reporting period.
• Property Tax Filing: Administered by municipalities, with deadlines varying locally.

Special Incentives and Tax Treaties

• Act 20 and Act 22 provide significant incentives for businesses and individuals, particularly aimed at attracting foreign investors.
• Double Taxation Agreement (DTA): Puerto Rico is not party to U.S. DTAs, but residents may still benefit from the U.S. tax system’s foreign income exclusions.

AML and Sanctions Risks

• As a U.S. territory, Puerto Rico adheres to U.S. AML regulations, and businesses operating there are subject to FinCEN requirements. There is no heightened AML risk specific to Puerto Rico beyond U.S. federal standards.
• Sanctions: Puerto Rico is subject to all U.S. international sanctions and embargoes.

Guam

Tax Authority: Guam Department of Revenue and Taxation

Key Legislation

• Guam Territorial Income Tax Law (mirrors the U.S. Internal Revenue Code)
• Guam Business Privilege Tax Law
• Guam Sales and Use Tax Law

Corporate Income Tax (CIT)

• Rate: 21%, mirroring the U.S. federal corporate income tax rate.
• Tax Base: Corporations are taxed on their Guam-sourced income, and U.S.-based corporations are taxed similarly to how they are taxed on their U.S.-sourced income.
• Deductions and Allowances:
  • Federal income taxes are not deductible.
  • Net operating losses (NOLs) can be carried forward for up to 20 years, in line with U.S. tax laws.

Personal Income Tax (PIT)

• Rates: Mirroring the U.S. federal tax system, with progressive rates from 10% to 37%.
• Deductions and Allowances:
  • Guam residents can claim similar standard deductions and itemized deductions as U.S. taxpayers, including for mortgage interest and charitable donations.
  • Tax credits and exemptions available under U.S. law also apply.

Sales Tax

• N/A: Guam does not impose a general sales tax. However, it levies a Business Privilege Tax.

Business Privilege Tax (BPT)

• Rate: 5% on the gross receipts of businesses operating in Guam.
• Tax Base: The BPT applies to all businesses engaged in trade or services within Guam.
• Deductions: There are limited deductions, as the tax is based on gross receipts.

Other Taxes

• Property Tax: Guam levies property taxes based on assessed value, with rates varying by municipality.
• Excise Taxes:
  • Gasoline Tax: $0.11 per gallon
  • Cigarette Tax: $3.00 per pack
  • Alcohol Tax: Varies by type (e.g., $9.52 per gallon on distilled spirits).
• Franchise Tax: Guam does not impose a general franchise tax.
• Business License Fees: Businesses must obtain a local business license, with fees varying depending on the type of business. Corporations and LLCs must file an annual report with the Guam Department of Revenue and Taxation. The filing fee is $100 for both LLCs and corporations.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• BPT Filing: Monthly or quarterly filings depending on business volume, with returns due by the last day of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by municipality.

Special Incentives and Tax Treaties

• Guam Economic Development Authority (GEDA) offers various incentives for businesses, including tax exemptions and credits for qualifying investments.
• Double Taxation Agreement (DTA): As a U.S. territory, Guam is subject to U.S. tax treaties and agreements.

AML and Sanctions Risks

• Guam adheres to U.S. AML regulations, and businesses must comply with FinCEN requirements.
• Sanctions: Guam follows U.S. international sanctions and embargoes, with no specific local deviations.

U.S. Virgin Islands

Tax Authority: Virgin Islands Bureau of Internal Revenue (BIR)

Key Legislation

• Virgin Islands Code Title 33 (Taxation and Finance)
• Virgin Islands Mirror Code (reflects U.S. Internal Revenue Code)
• Virgin Islands Gross Receipts Tax Law

Corporate Income Tax (CIT)

• Rate: 21%, mirroring the U.S. federal corporate income tax rate.
• Tax Base: Corporations are taxed on their U.S. Virgin Islands-sourced income.
• Incentives:
  • The Economic Development Commission (EDC) offers incentives such as reduced tax rates and exemptions for qualifying businesses.
• Deductions and Allowances:
  • Similar to U.S. tax law, NOLs can be carried forward for up to 20 years.

Personal Income Tax (PIT)

• Rates: Mirroring U.S. federal tax rates, progressive rates from 10% to 37%.
• Deductions and Allowances:
  • Standard deductions and itemized deductions for mortgage interest, charitable donations, and medical expenses follow U.S. federal guidelines.
  • Special tax credits and exclusions may apply for U.S. Virgin Islands residents.

Sales Tax

• N/A: The U.S. Virgin Islands does not impose a traditional sales tax. Instead, it has a Gross Receipts Tax.

Gross Receipts Tax

• Rate: 5% on gross receipts of businesses in the U.S. Virgin Islands.
• Tax Base: Applies to all businesses operating within the U.S. Virgin Islands, including the sale of goods and services.
• Deductions: Limited deductions are allowed, as the tax is based on gross receipts.

Other Taxes

• Property Tax: The U.S. Virgin Islands imposes property taxes with rates varying by type and location, with an average effective rate of around 0.8% of assessed property value.
• Excise Taxes:
  • Gasoline Tax: $0.14 per gallon
  • Cigarette Tax: $3.50 per pack
  • Alcohol Tax: Varies by type (e.g., $10.50 per gallon on distilled spirits).
• Franchise Tax: The U.S. Virgin Islands does not impose a general franchise tax.
• Business License Fees: Most businesses are required to obtain a business license, with fees depending on the type of business. Corporations and LLCs are required to file an annual report with the U.S. Virgin Islands government. The filing fee is $150 for LLCs and corporations.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Gross Receipts Tax Filing: Monthly or quarterly, depending on business volume, with returns generally due by the last day of the month following the reporting period.
• Property Tax Filing: Administered locally, with deadlines varying by locality.

Special Incentives and Tax Treaties

• The Economic Development Commission (EDC) offers tax incentives, including reductions in corporate income tax rates and exemptions from excise and property taxes for businesses that meet certain criteria.
• Double Taxation Agreement (DTA): The U.S. Virgin Islands follows U.S. tax treaties, but local benefits may differ for residents and businesses under U.S. federal law.

AML and Sanctions Risks

• The U.S. Virgin Islands adheres to U.S. AML regulations, with businesses subject to FinCEN requirements.
• Sanctions: The U.S. Virgin Islands follows U.S. sanctions and embargoes without deviation.

American Samoa

Tax Authority: American Samoa Department of Treasury

Key Legislation

• American Samoa Income Tax Law (based on the U.S. Internal Revenue Code with modifications)
• American Samoa Business License Law
• American Samoa Excise Tax Law

Corporate Income Tax (CIT)

• Rate: 27%, lower than the U.S. federal corporate tax rate.
• Tax Base: Corporations are taxed on their American Samoa-sourced income.
• Incentives:
  • Tax exemptions and incentives are available for certain industries, including fishing and manufacturing.
• Deductions and Allowances:
  • Standard deductions apply based on the U.S. tax system, with some local modifications.
  • NOLs can be carried forward for up to 20 years.

Personal Income Tax (PIT)

• Rates: Progressive rates from 2% to 35%, similar to U.S. tax rates but with some local variations.
• Deductions and Allowances:
  • American Samoa offers standard deductions and itemized deductions similar to U.S. federal tax law.
  • Residents may benefit from additional exemptions and credits, especially for families and low-income individuals.

Sales Tax

• N/A: American Samoa does not impose a traditional sales tax.

Other Taxes

• Excise Taxes:
  • Import Duties: Varies by product type, generally between 5% and 15% on imported goods.
  • Alcohol Tax: $6.60 per gallon on distilled spirits.
  • Tobacco Tax: $3.00 per pack of cigarettes.
• Property Tax: There is no property tax in American Samoa.
• Franchise Tax: American Samoa does not impose a general franchise tax.
• Business License Fees: Businesses must obtain an annual business license, with fees ranging from $25 to $1,000 depending on the type of business. Corporations and LLCs are required to file an annual report with the American Samoa Department of Commerce. The filing fee depends on the size and type of the business, typically starting at $25.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• Excise Tax Filing: Monthly or quarterly, depending on business activity, with returns due by the last day of the month following the reporting period.
• Business License Filing: Annual licenses must be renewed at the start of each calendar year.

Special Incentives and Tax Treaties

• Enterprise Zone Program: Provides tax incentives for businesses that establish operations in designated areas, including reduced corporate tax rates and excise tax exemptions.
• Double Taxation Agreement (DTA): American Samoa follows the U.S. tax system, but there are no specific DTAs for American Samoa.

AML and Sanctions Risks

• American Samoa adheres to U.S. AML regulations, with businesses subject to FinCEN requirements.
• Sanctions: American Samoa follows U.S. sanctions and embargoes.

Northern Mariana Islands

Tax Authority: Commonwealth of the Northern Mariana Islands Division of Revenue and Taxation

Key Legislation

• Northern Mariana Islands Territorial Income Tax Law (mirrors U.S. Internal Revenue Code with local modifications)
• Northern Mariana Islands Business Gross Revenue Tax Law
• Northern Mariana Islands Excise Tax Law

Corporate Income Tax (CIT)

• Rate: 21%, mirroring the U.S. federal corporate tax rate.
• Tax Base: Corporations are taxed on Northern Mariana Islands (CNMI)-sourced income. U.S. corporations are taxed similarly to how they are taxed on their U.S.-sourced income.
• Incentives:
  • Special tax incentives are available under the Commonwealth’s economic development programs.
  • Qualifying Certificate Program: Offers tax exemptions for certain industries like tourism, manufacturing, and agriculture.
• Deductions and Allowances:
  • Standard U.S. tax deductions apply.
  • NOLs can be carried forward for up to 20 years.

Personal Income Tax (PIT)

• Rates: Mirroring U.S. federal tax rates, progressive rates from 10% to 37%.
• Deductions and Allowances:
  • The same standard and itemized deductions available to U.S. taxpayers apply, including mortgage interest, charitable donations, and medical expenses.
  • Special credits and exemptions may be available for CNMI residents.

Sales Tax

• N/A: The Northern Mariana Islands does not impose a traditional sales tax but levies a Gross Revenue Tax.

Gross Revenue Tax (GRT)

• Rate: 5% on the gross receipts of businesses operating in the CNMI.
• Tax Base: The GRT applies to all businesses, including the sale of goods and services within the CNMI.
• Deductions: Limited deductions, as the tax is based on gross receipts.

Other Taxes

• Property Tax: The CNMI does not impose a general property tax, but land lease agreements may be subject to tax.
• Excise Taxes:
  • Gasoline Tax: $0.15 per gallon
  • Cigarette Tax: $1.75 per pack
  • Alcohol Tax: Varies by type (e.g., $6.60 per gallon on distilled spirits).
• Franchise Tax: The CNMI does not impose a general franchise tax.
• Business License Fees: Businesses are required to obtain a business license, with fees varying depending on the type and size of the business. Corporations and LLCs must file an annual report with the CNMI government. The filing fee for LLCs and corporations is $100.

Compliance

• Corporate Tax Filing Deadline: Corporate tax returns are due by the 15th day of the 4th month following the close of the tax year (April 15 for calendar-year corporations).
• Personal Tax Filing Deadline: April 15, with extensions available.
• GRT Filing: Monthly or quarterly, depending on business volume, with returns due by the last day of the month following the reporting period.
• Business License Filing: Businesses must renew their licenses annually, typically at the start of the calendar year.

Special Incentives and Tax Treaties

• Qualifying Certificate Program: Offers tax exemptions and reductions for businesses that invest in certain industries, including hospitality and agriculture.
• Double Taxation Agreement (DTA): The CNMI follows U.S. tax law, and there are no independent tax treaties for the CNMI.

AML and Sanctions Risks

• The CNMI adheres to U.S. AML regulations, and businesses operating in the territory are subject to FinCEN regulations.
• Sanctions: The CNMI follows U.S. international sanctions and embargoes.