Corporate tax rates, the percentage of the profits of a company that pays the government, can vary widely from state to state. Most states (except six: Nevada, Ohio, South Dakota, Texas, Washington and Wyoming) charge a local corporation tax on $ 100,000 profits in addition to the federal rate or 21%.
But what state is the most charged? To discover, the financial site based in the United Kingdom, BusinessFinancing.co.uk, created a hypothetical company and applied the fiscal rules of each state using data from four large companies, Deloitte and PricewaterhouseCoopers.
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The false company was public, in the technological sector, and had an income of $ 1 million. He also had five to nine employees, obtained profits or $ 100,000 a year, and had a profit margin of 10%. The owner’s salary was $ 59,000.
According to these data, the study found that Minnesota companies would pay more, around 30.8% in earnings of $ 100,000 (or $ 30,800) in addition to the federal amount. Illinois would pay the second highest, around 30.5%. California (29.8%), Delaware (29.7%) and Massachusetts (29%) completed the first five.
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The lowest tax payment was approximately $ 21,000 in earnings of $ 100,000. Six states tied in the lowest (in addition to the six that charge anything, of course). Ohio, Nevada, South Dakota, Texas, the state of Washington and Wyoming were tied for the lowest.
The report also analyzed global trends and discovered that the country with the highest tax rate for small businesses was Guyana. The business that created the study would have had to pay $ 40,000 in earnings of $ 100,000.
The countries with the lowest taxes on small businesses were the Bahamas (which charges a small license rate), Bahrein, and the United Arab Emirates, which, according to the study model, did not charge corporate taxes on the profits of $ 100,000.
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Corporate tax rates, the percentage of the profits of a company that pays the government, can vary widely from state to state. Most states (except six: Nevada, Ohio, South Dakota, Texas, Washington and Wyoming) charge a local corporation tax on $ 100,000 profits in addition to the federal rate or 21%.
But what state is the most charged? To discover, the financial site based in the United Kingdom, BusinessFinancing.co.uk, created a hypothetical company and applied the fiscal rules of each state using data from four large companies, Deloitte and PricewaterhouseCoopers.
Related: 4 Fiscal Strategies Each high profit entrepreneur needs to know by 2025
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