Table 7.27

State Personal and Corporate Income Taxes: Federal Starting Points (As of January 1, 2023)


  Personal income starting points Corporate income starting points
FIPS State or other
jurisdiction
Relation to Internal Revenue Code Federal tax base used as
starting point to calculate
state taxable income
Relation to Internal Revenue Code Federal tax base used as
starting point to calculate
state taxable income
01AlabamaCurrentTaxable Income (b)
02AlaskaN.A.CurrentTaxable Income
04Arizona1/1/2022Adjusted gross income1/1/2022Net Taxable Income
05Arkansas
06California1/1/2015Adjusted gross income1/1/2015Taxable Income
08ColoradoCurrentTaxable incomeCurrentNet Taxable Income
09ConnecticutCurrentAdjusted gross incomeCurrentTaxable Income
10DelawareCurrentAdjusted gross incomeCurrentNet Taxable Income
12FloridaN.A.1/1/2022Net Taxable Income
13Georgia1/1/2022Adjusted gross income1/1/2022Net Taxable Income
15Hawaii12/31/2021Adjusted gross income12/31/2021Taxable Income
16Idaho1/1/2022Taxable income1/1/2022Net Taxable Income
17IllinoisCurrentAdjusted gross incomeCurrentNet Taxable Income
18Indiana3/31/2021Adjusted gross income3/31/2021Taxable Income
19IowaCurrentAdjusted gross incomeCurrentNet Taxable Income
20KansasCurrentAdjusted gross incomeCurrentNet Taxable Income
21Kentucky12/31/2021Adjusted gross income12/31/2021Taxable Income
22LouisianaCurrentAdjusted gross incomeCurrentTaxable Income
23Maine12/31/2021Adjusted gross income12/31/2021Net Taxable Income
24MarylandCurrentAdjusted gross incomeCurrentNet Taxable Income
25Massachusetts1/1/2022Adjusted gross incomeCurrentTaxable Income
26MichiganCurrent (a)Adjusted gross income1/1/2018Net Taxable Income
27Minnesota12/15/2022Adjusted gross income12/15/2022Taxable Income
28Mississippi
29MissouriCurrentAdjusted gross incomeCurrentNet Taxable Income
30MontanaCurrentAdjusted gross incomeCurrentTaxable Income
31NebraskaCurrentAdjusted gross incomeCurrentNet Taxable Income
32NevadaN.A.N.A.
33New HampshireOn interest and dividends only12/31/2018Taxable Income
34New JerseyCurrentTaxable Income
35New MexicoCurrentAdjusted gross incomeCurrentTaxable Income
36New YorkCurrentAdjusted gross incomeCurrentTaxable Income
37North Carolina4/1/2021Adjusted gross income4/1/2021Taxable Income
38North DakotaCurrentTaxable incomeCurrentNet Taxable Income
39Ohio2/17/2022Adjusted gross incomeCommercial Activity Tax (CAT)
40OklahomaCurrentAdjusted gross incomeCurrentTaxable Income
41Oregon12/31/2021Taxable income12/31/2021Taxable Income
42PennsylvaniaCurrentTaxable Income
44Rhode IslandCurrentAdjusted gross incomeCurrentTaxable Income
45South Carolina12/31/2021Taxable income12/31/2021Net Taxable Income
46South DakotaN.A.N.A.
47TennesseeOn interest and dividends onlyCurrentTaxable Income
48TexasN.A.1/1/2007Gross Income
49UtahCurrentAdjusted gross incomeCurrentTaxable Income
50Vermont12/31/2021Adjusted gross income12/31/2021Net Taxable Income
51Virginia12/31/2021Adjusted gross income12/31/2021Net Taxable Income
53WashingtonN.A.N.A.
54West Virginia3/11/2021Adjusted gross income12/31/2021Net Taxable Income
55Wisconsin12/31/2020Adjusted gross income12/31/2020Taxable Income
56WyomingN.A.N.A.
11Dist. of ColumbiaCurrentAdjusted gross incomeCurrentGross Income

Source:

Compiled by the Federation of Tax Administrators from various sources. January 2023.

Notes:

Includes all legislation enacted through January 1, 2022.

Key:

State does not employ a federal starting point.
Current Indicates state has adopted the Internal Revenue Code as currently in effect.
Taxable Income before NOL and Special Deductions [line 28], Net Taxable Income [line 30].

Dates indicate state has adopted IRC as amended to that date.

Footnotes:

(a)

Michigan’s taxpayers can choose to use either current or 1/1/2018 federal law.

(b)

Alabama starting point is before NOL but after Special Deductions.