Which states have the lowest taxes for small businesses?

Corporate tax rates, the percentage of profits of a company that it pays to the government can vary widely from the state to the state. Most states (except six: Nevada, Ohio, South Dakota, Texas, Washington, and Vyoming) charge a local corporation tax on a profit of $ 100,000. 21%,

But which state charges the most? To find out, the UK -based finance site, Businessfinancing.co.ukFormed a fictional company and implemented the tax rules of every state using data from Big Firms, Deloite and PricewaterhouseCupers.

Connected: 4 tax strategies every high -earning entrepreneur will know for 2025

The fake company was public, in the technical field, and a revenue of $ 1 million. It also had five to nine employees, earned a profit of $ 100,000 per year, and 10% profit margin. The owner’s salary was $ 59,000.

Based on this data, Found in study This Minnesota business will pay about 30.8% at a profit of $ 100,000 (or $ 30,800) at the top of the federal amount. Illinois will pay the second highest, about 30.5%. California (29.8%), Delaware (29.7%), and Massachusetts (29%) excluded the top five.

Connected: How much money do you need to retire comfortably in your state? Here is a breakdown.

The lowest tax payment at a profit of $ 100,000 was around $ 21,000. Six states are bound to the lowest (whatever except six, whatever they do, of course). Ohio, Nevada, South Dakota, Texas, Washington State, and Vyoming were all bound for the lowest.

The report also saw global trends and found that the highest tax rate for small businesses was Guyana. The study business will have to pay $ 40,000 at a profit of $ 100,000.

The lowest tax country on small businesses was Bahamas (which charges a small license fee), Bahrain and the United Arab Emirates, which, according to the model of the study, did not pay corporate tax on a profit of $ 100,000.

Connected: Hidden fees The cost of small businesses of $ 153 billion every year – how to make sure that you do not lose a dime