Table 7.27

State Personal and Corporate Income Taxes: Federal Starting Points (As of January 1, 2022)


  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
01Alabama467.5 (c)41Cigars 3¢-40.5¢/10 cigars; Tobacco/Snuff 2¢-6¢/oz. (n)
02Alaska(a)2001975% WP
04Arizona5.620019Cigars 22.01¢-$2.18/10 cigars; Tobacco/Snuff 22.3¢/oz.
05Arkansas6.51153668% MP
06California7.25 (b)2871363.49% WP (o)
08Colorado2.91942450% MP (o)
09Connecticut6.35435250% WP (o)(p)
10Delaware(a)2101730% WP (o)(p)
12Florida6133.9 (d)33Tobacco/Snuff 85% WP (q)
13Georgia43750Little Cigars 2.5¢/10 cigars; Other cigars 23% WP; Tobacco 10% WP (o)
15Hawaii43208Large Cigars - 50% WP; Tobacco/Snuff 70% WP (r)
16Idaho6574640% WP
17Illinois6.25298 (c)1236% WP (o)(p)
18Indiana799.53924% WP
19Iowa61363250% WP (r)
20Kansas6.51293410% WP (o)
21Kentucky61103715% WP (o)(p)
22Louisiana4.4510838Cigars 8%-20% MP; Snuff/Smoking Tobacco 20%-33% MP (o)
23Maine5.520019Chewing Tob./Snuff $2.02/oz.; Smoking Tob./Cigars 43% WP (o)
24Maryland63755Tobacco/Snuff 53% WP; Cigars 70% WP (o)
25Massachusetts6.25351640% WP (o)
26Michigan62001932% WP
27Minnesota6.875304 (e)1095% WP (o)
28Mississippi7684015% MP
29Missouri4.22517 (c)5110% MP
30Montana(a)1702750% WP (p)
31Nebraska5.5644220% WP (p)
32Nevada6.851802530% WP (o)
33New Hampshire(a)1782665.03% WP (o)
34New Jersey6.6252701430% WP (o)(p)
35New Mexico5.1252001925% WP Product value (o)
36New York4435 (c)275% WP (o)(p)
37North Carolina4.75454812.8% WP (o)
38North Dakota54449Cigars & Tobacco 28% WP; Chew Tobacco/Snuff 16¢-60¢ /oz.
39Ohio5.751602917% WP (o)
40Oklahoma4.520318Cigars- Little/Large $1.20/ 10 cigars; Tobacco/Snuff 60%-80% Factory list price
41Oregon(a)333765% WP (o) (p)
42Pennsylvania62601555¢/oz.- tobacco (o)(r)
44Rhode Island7425480% WP
45South Carolina657465% MP
46South Dakota4.51533035% WP
47Tennessee762 (c)(f)436.6% WP
48Texas6.2514131Cigar 1¢-15¢/10 cigars; Tobacco/Snuff -$1.22 /oz.
49Utah6.1 (i)1702786% MP (o)(p)(r)
50Vermont6308992% WP - Cigar $20-$40/10 cigars; Tobacco/Snuff $2.57/ oz. (o)(p)
51Virginia5.3 (h)60 (c)4420% MP (o) (p)
53Washington6.5302.51195% WP (o)(p)(r)
54West Virginia61203512% WP (o)
55Wisconsin52521671% MP (o) (p)
56Wyoming4604420% WP (o) (p)
11Dist. of Columbia6450 (g)180% WP (o)(s)

Source:

Compiled by the Federation of Tax Administrators from various sources. January 2022.

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.