Tax

The best and worst states for corporate taxes

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The Tax Foundation recently ranked the states with most and least competitive corporate taxes in 2025. Most states charge standard corporate income taxes on profits, while some states charge taxes on the gross receipts of businesses with few or no deductions for expenses.

Wyoming and South Dakota have the most competitive corporate taxes, as they both have no corporate or individual income tax. Delaware is the least competitive, imposing both corporate income and gross-receipts taxes at the state level.

Read more about the states with the most and least competitive corporate taxes in 2025.

States with the most competitive corporate taxes in 2025

2025
rank
State

2025 score

2024 rank

2023 rank

2022 rank

2021 rank

2020 rank

10 Colorado

5.65

9

9

8

11

10

9 Michigan

5.69

8

7

6

6

6

8 Indiana

5.73

7

6

5

5

8

7 North Dakota

5.75

10

8

7

7

5

6 Mississippi

5.78

6

11

11

10

9

5 Oklahoma

5.86

5

5

14

13

12

4 Missouri

6.04

4

4

4

4

4

3 North Carolina

6.31

3

3

3

3

3

1 South Dakota

10.00

1

1

1

1

1

1 Wyoming

10.00

1

1

1

1

1

States with the least competitive corporate taxes in 2025

2025
rank
State

2025 score

2024 rank

2023 rank

2022 rank

2021 rank

2020 rank

41 California

4.61

41

41

41

31

30

42 Illinois

4.58

42

37

37

36

37

43 Minnesota

4.42

43

42

42

41

42

44 New Jersey

4.29

44

44

44

44

44

45 Ohio

3.95

45

45

45

46

46

46 Texas

3.94

46

46

46

47

47

47 Washington

3.87

47

47

47

48

48

48 Tennessee

3.57

48

48

48

49

49

49 Oregon

2.32

49

49

49

45

25

50 Delaware

1.45

50

50

50

50

50

The most competitive states


Chart showing states with the most competitive corporate taxes in 2025 where Colorado ranks 10th.
Colorado ranks 10th with a 2025 score of 5.65.
Chart showing states with the most competitive corporate taxes in 2025 where Michigan ranks 9th.
Michigan ranks 9th with a 2025 score of 5.69.
Chart showing states with the most competitive corporate taxes in 2025 where Indiana ranks 8th.
Indiana ranked 8th with a 2025 score of 5.73.
Chart showing states with the most competitive corporate taxes in 2025 where North Dakota ranks 7th.
North Dakota ranks 7th with a 2025 score of 5.75.
Chart showing states with the most competitive corporate taxes in 2025 where Mississippi ranks 6th.
Mississippi ranks 6th with a 2025 score of 5.78.
Chart showing states with the most competitive corporate taxes in 2025 where Oklahoma ranks 5th.
Oklahoma ranks 5th with a 2025 score of 5.86.
Chart showing states with the most competitive corporate taxes in 2025 where Missouri ranks 4th.
Missouri ranks 4th with a 2025 score of 6.04.
Chart showing states with the most competitive corporate taxes in 2025 where North Carolina ranks 3rd.
North Carolina ranks 2rd with a 2025 score of 6.31.
Chart showing states with the most competitive corporate taxes in 2025 where Wyoming tied for 1st.
Wyoming tied for 1st with a 2025 score of 10.
Chart showing states with the most competitive corporate taxes in 2025 where South Dakota tied for 1st.
South Dakota tied for 1st with a 2025 score of 10.

The least competitive states in 2025

Chart showing states with the least competitive corporate taxes in 2025 where California ranks 41st.
California rans 41st with a 2025 score of 4.61.
Chart showing states with the least competitive corporate taxes in 2025 where Illinois ranks 42nd.
Illinois ranks 42nd with a 2025 score of 4.58.
Chart showing states with the least competitive corporate taxes in 2025 where Minnesota ranks 43rd.
Minnesota ranks 43rd with a 2025 score of 4.42.
Chart showing states with the least competitive corporate taxes in 2025 where New Jersey ranks 44th.
New Jersey ranks 44th with a total score of 4.29.
Chart showing states with the least competitive corporate taxes in 2025 where Ohio ranks 45th.
Ohio ranks 45th with a 2025 score of 3.95.
Chart showing states with the least competitive corporate taxes in 2025 where Texas ranks 46th.
Texas ranks 46th with a 2025 score of 3.94.
Chart showing states with the least competitive corporate taxes in 2025 where Washington ranks 47th.
Washington ranls 47th with a 2025 score of 3.87.
Chart showing states with the least competitive corporate taxes in 2025 where Tennessee ranks 48th.
Tennessee ranks 48th with a 2025 total score of 3.57.
Chart showing states with the least competitive corporate taxes in 2025 where Oregon ranks 49th.
Oregon ranks 49th with a 2025 total score of 2.32.
Chart showing states with the least competitive corporate taxes in 2025 where Delaware ranks 50th.
Delaware ranks 50th with a 2025 toal score of 1.45.
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