The LLC tax rates by state are the annual percentages of income that each state levies against limited liability companies in their jurisdiction, usually in the form of corporate tax. This tax can vary quite a bit from state to state, and this is because although most states take their lead from federal laws in taxation, each state adds its own special deductions and exclusions, which can yield much variance.

Further complicating the matter is the fact that LLCs are taxed depending on what IRS election they take, which means a single-member LLC will pay taxes differently than an LLC with S corp election. It should also be noted that some states refer to their income tax as a franchise tax and others as a gross receipts tax.

Alabama

  • Corporate tax: 6.5%
  • Personal tax: 2–5%

Alaska

  • Corporate tax: 2–9.4%
  • Personal tax: NA

Arizona

  • Corporate tax: 6.96%
  • Personal tax: 2.59–4.54%

Arkansas

  • Corporate tax: 1–6.5%
  • Personal tax: 1–7%.

California

  • Corporate tax: 8.84%
  • Personal tax: 1.25–10.55%

Colorado

  • Corporate tax: 4.63%
  • Personal tax: 4.6%

Connecticut

  • Corporate tax: 7.5%
  • Personal tax: 3–5%

Delaware

  • Corporate tax: 8.7%
  • Personal tax: 2.2–6.95%

District of Columbia

  • Corporate tax: 9.975%
  • Personal tax: 4–8.5%

Florida

  • Corporate tax: 5.5%
  • Personal tax: NA

Georgia

  • Corporate tax: 6%
  • Personal tax: 1–6%

Hawaii

  • Corporate tax 4.4–6.4%
  • Personal tax: 1.4–11%

Idaho

  • Corporate tax: 7.6%
  • Personal tax: 1.6–7.8%

Illinois

  • Corporate tax: 7.3%
  • Personal tax: 3%

Indiana

  • Corporate tax: 8.5%
  • Personal tax: 3.4%

Iowa

  • Corporate tax: 6–12%
  • Personal tax: 0.36–8.98%

Kansas

  • Corporate tax: 4–7.05%
  • Personal tax: 3.5–6.45%

Kentucky

  • Corporate tax: 4–6%
  • Personal tax: 2–6%

Louisiana

  • Corporate tax: 4–8%
  • Personal tax: 2–6%

Maine

  • Corporate tax: 3.5–8.93%
  • Personal tax: 2–8.5%

Maryland

  • Corporate tax: 8.25%
  • Personal tax: 2–6.25%

Massachusetts

  • Corporate tax: 9.5%
  • Personal tax: 5.3%

Michigan

  • Corporate tax 4.95%
  • Personal tax: 4.35%

Minnesota

  • Corporate tax: 9.8%
  • Personal tax: 5.35–7.85%

Mississippi

  • Corporate tax: 3–5%
  • Personal tax: 3–5%

Missouri

  • Corporate tax: 6.25%
  • Personal tax: 1.5–6%

Montana

  • Corporate tax: 6.75%
  • Personal tax: 1–6.9%

Nebraska

  • Corporate tax: 5.58–7.81%
  • Personal tax: 2.56–6.84%

Nevada

  • Corporate tax: NA
  • Personal tax: NA

New Hampshire

  • Corporate tax: 8.5%
  • Personal tax: 5%

New Jersey

  • Corporate tax: 6.5–9%
  • Personal tax: 1.4–10.75%

New Mexico

  • Corporate tax: 4.8–7.6%
  • Personal tax: 1.7–4.9%

New York

  • Corporate tax: 7.1%
  • Personal tax: 4–8.97%

North Carolina

  • Corporate tax: 6.9%
  • Personal tax: 6–7.75%

North Dakota

  • Corporate tax: 4.1–6.5%
  • Personal tax: 1.84–4.86%

Ohio

  • Gross receipts tax: .26%
  • Personal tax: .495–5.925%

Oklahoma

  • Corporate tax: 6%
  • Personal tax: 5–5.5%

Oregon

  • Corporate tax: 6.6–7.9%
  • Personal tax: 5–11%

Pennsylvania

  • Corporate tax: 9.99%
  • Personal tax: 3.07%

Rhode Island

  • Corporate tax: 9%
  • Personal tax: 3.75–9.9%

South Carolina

  • Corporate tax: 5%
  • Personal tax: 0–7%

South Dakota

  • Corporate tax: NA
  • Personal tax: NA

Tennessee

  • Franchise tax: .25% of net corporation or tangible property value. Minimum payment of $100.
  • Excise tax: 6.5% of net taxable income in Tennessee.
  • Personal tax: 6%.

Texas

  • Gross receipts tax: 1% on gross income exceeding $1,000,000
  • Personal tax: NA

Utah

  • Corporate tax: 5%
  • Personal tax: 5%

Vermont

  • Corporate tax: 6–8.5%
  • Personal tax: 3.55–9.4%

Virginia

  • Corporate tax: 6%
  • Personal tax: 2–5.75%

Washington

  • Gross receipts tax: 1.5% on any revenue after $35,000 of gross receipts.
  • Personal tax: NA

West Virginia

  • Corporate tax: 8.5%
  • Personal tax: 3–6.5%

Wisconsin

  • Corporate tax: 7.9%
  • Personal tax: 4.6–7.75%

Wyoming

  • Corporate tax: NA
  • Personal tax: NA

Income Taxes

When it comes to income taxes, because LLC members are treated as self-employed business owners rather than employees, tax withholding does not apply to them. Rather, each member must pay taxes on their profits directly to the IRS.

Self-Employment Taxes

Similarly, because they are considered self-employed, LLC members must pay a self-employment tax directly to the IRS. This tax covers the Medicare and Social Security contributions that are not withheld from their paycheck due to their status as self-employed. Currently, members who are active in the LLC must pay this on their share of the profits, while non-active members may be exempt from it. This self-employment tax is reported on the Schedule SE form as part of the 1040 tax return.

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