Pennsylvania ranks fifth worst on corporate tax study


Pennsylvania finished 46th in a study by the Tax Foundation examining how well states have structured their corporate income tax systems in 2020.

The state’s ranking dropped one position from its 2019 score, according to the foundation’s analysis, which is part of a wider study titled “2020 State Business Tax Climate Index.”

The corporate tax ranking measures each state’s primary levy on business activities. Some states take a cut of businesses’ gross receipts, which the Tax Foundation sees as more economically harmful, while the majority of states tax corporate profits – the amount in receipts after most business expenses, including the cost of the items they sell, are deducted.

The analysis also looked at how corporate tax systems deal with net operating losses, whether machinery and equipment purchases can be deducted and whether corporate income tax brackets are indexed for inflation.

---

How Do States Rate on Corporate Income Taxes?

State2017 Rank2018 Rank2019 Rank2020 RankChange from 2019 to 2020
South Dakota11110
Wyoming11110
North Carolina43330
South Carolina1515440
Missouri55651
Georgia1110862
Colorado181857-2
Oklahoma10919811
Florida19191192
Mississippi121214104
Indiana232318117
Utah34712-5
New York8717134
Virginia761014-4
West Virginia171724159
Hawaii6111216-4
Kentucky282720173
Michigan981318-5
North Dakota16161619-3
New Mexico252423203
Montana1313921-12
Arizona19141522-7
Alabama14222223-1
Tennessee222127243
Nevada34332125-4
Alaska27262526-1
Connecticut323134277
California3332382810
Idaho24252829-1
Wisconsin302931301
Nebraska29282931-2
Maryland21202632-6
Oregon35343033-3
Arkansas393940346
Kansas38383235-3
Illinois263637361
Louisiana40403537-2
Maine41413338-5
Massachusetts363539390
Rhode Island31303640-4
Washington454642411
Ohio464743421
New Hampshire474546433
Minnesota434344440
Vermont37374145-4
Pennsylvania44444546-1
Texas494948471
Iowa48484748-1
New Jersey424249490
Delaware505050500
Source: Tax Foundation

Want to get notified whenever we write about Tax Foundation ?

Sign-up Next time we write about Tax Foundation, we'll email you a link to the story. You may edit your settings or unsubscribe at any time.

Organizations in this Story

Tax Foundation

More News

Metro Business Network