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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 |
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