Louisiana Corporate Income Tax Ranks 27th Highest In Nation

While the Tax Cuts and Jobs Act reduced the federal corporate income tax rate from 35% to 21%, most U.S. states—including Louisiana—also tax corporate income, with the average combined rate being 25.9%, according to the Tax Foundation.

The combined federal and state corporate tax rate for Louisiana is 26%—the 27th highest rate in the nation. The state’s rates are comparable to other surrounding Southern states, such as Arkansas (26.1%), Mississippi (25%) and Alabama (25.1%).

Earlier this year, the Tax Foundation ranked Louisiana at 44th in the nation in its annual State Business Tax Climate Index.

State-level corporate income tax rates vary across the country. Six states (Nevada, Ohio, South Dakota, Texas, Washington and Wyoming) levy no corporate income tax, while the other 44 states and the District of Columbia do tax corporate profits. State-level rates range from a low of 3% in North Carolina to a high of 12% in Iowa. While the majority of states levy a flat rate on corporate profits, 14 states have progressively structured corporate income taxes.

The state with the highest corporate income tax rate is New Jersey, with a top combined rate of more than 30%. Corporations in six other states—Alaska, Illinois, Iowa, Maine, Minnesota and Pennsylvania—face a combined rate over 28%.

SOURCE: BusinessReport.com