LLC Tax Rates by State: Everything You Need to Know

Tax rates on LLC

As an LLC startup owner, the last thing you want is to complicate your taxation. Since the considerations and requirements of tax rates vary from state to state. In simple terms, the tax rates of each state are represented in annual percentages as corporate taxes.

It is also important to understand that tax rates do notalways stay the same and are subject to changes in line with new federal and state laws. For instance, these changes usually have an impact on deductions and exclusions.

Here is an overview of pass through tax entity and personal tax rates in each state LLC tax for each state:

American Samoa LLC Tax rates

Personal tax: 0%
Corporate tax: 0%

American Samoa stands out because it has a 0% corporate tax rate to establish an LLC.

Alabama Tax Rates – al llc tax rates

LLC tax rate
Personal tax: 2-5%
Corporate tax: 6.5%

Alaska Tax Rates – ak llc tax rates

Personal tax: 6.5%
Corporate tax: 2-9.4%

Arkansas Tax Rates – ar llc tax rates

Personal tax: 2.4-7%
Corporate tax: 1-6.5%

Arizona Tax Rates – AZ llc tax rates

Personal tax: 4.9%
Corporate tax: 6.95%

Colorado Tax Rates – CT llc tax rates

Personal tax: 4.6%
Corporate tax: 4.63%

California – ca llc tax rates?

Personal tax: 15%
Corporate tax: 8.84%

Connecticut – ct llc tax rates

Corporate tax: 7.5%
Personal tax: 3-5%

District of Columbia –DC llc tax rates

Personal tax: 4-8.5%
Corporate tax: 9.975%

Delaware –DE llc tax rates

Personal tax: 2.2-6.95%
Corporate tax: 8.7%

Georgia – ga llc tax rates

Personal tax: 2-6%
Corporate tax: 6%

Florida – florida llc tax rates

Personal tax: N/A
Corporate tax: 5.5%

Hawaii –HI llc tax rates

Personal tax: 1.4-11%
Corporate tax 4.4-6.4%

Indiana – IN llc tax rates

Personal tax: 3.4%
Corporate tax: 8.5%

Illinois –IL llc tax rates

Corporate tax: 7.3%
Personal tax: 3%

Idaho –ID llc tax rates

Personal tax: 1.6-7.8%
Corporate tax: 7.6%

Iowa – ia llc tax rates

Personal tax: 0.36-8.98%
Corporate tax: 6-12%

Kentucky llc tax rates

Corporate tax: 4-6%
Personal tax: 2-6%

Kansas – ks llc tax rates

Personal tax: 3.5-6.45%
Corporate tax: 4-7.05%

Louisiana – la llc tax rates

Personal tax: 2-6%
Corporate tax: 4-8%

Maryland – md llc tax rates

Personal tax: 2-6.25%
Corporate tax: 8.25%

Massachusetts – massachusetts llc tax rate

Personal tax: 5.3%
Corporate tax: 9.5%

Maine – ma llc tax rates

Personal tax: 2-8.5%
Corporate tax: 3.5-8.93%

Minnesota – mi llc tax rates

Personal tax: 5.35-7.85%
Corporate tax: 9.8%

Michigan – Michigan LLC tax rate

Personal tax: 4.35%
Corporate tax 4.95%

Mississippi – ms llc tax rates

Personal tax: 3-5%
Corporate tax: 3-5%

Montana – mt llc tax rates

Personal tax: 1-6.9%
Corporate tax: 6.75%

Missouri – mo llc tax rates

Personal tax: 1.5-6%
Corporate tax: 6.25%

Nebraska – NE llc tax rates

Personal tax: 2.46%
Corporate tax: 5.58-7.81%

Nevada – NV llc tax rates

Personal tax: NA
Corporate tax: NA

New Jersey – nj llc tax rates

Personal tax: 1.4-10.75%
Corporate tax: 6.5-9%

New York – New York llc tax rate

Personal tax: 4-8.97%
Corporate tax: 7.1%

New Mexico – nm llc tax rates

Personal tax: 1.7-4.9%
Corporate tax: 4.8-7.6%

North Dakota – nd llc tax rates

Personal tax: 1.84-4.86%
Corporate tax: 4.1-6.5%

North Carolina – North Carolina Tax rate

Personal tax: 6-7.75%
Corporate tax: 6.9%

New Hampshire – nh llc tax rates

Personal tax: 5%
Corporate tax: 8.5%

Oregon – Oregon LLC tax rate

Personal tax: 5-11%
Corporate tax: 6.6-7.9%

Oklahoma – ok llc tax rates

Personal tax: 5-5.5%
Corporate tax: 6%

Ohio – oh llc tax rates

Personal tax: .495-5.925%
Gross receipts tax: .26%

Pennsylvania – pa llc tax rates

Personal tax: 3.07%
Corporate tax: 9.99%

Rhode Island – rd llc tax rates

Personal: tax: 3.75-9.9%
Corporate tax: 9%

South Dakota – sd llc tax rates

Personal tax: NA
Corporate tax: NA

South Carolina – sc llc tax rates

Personal tax: 0-7%
Corporate tax: 5%

Texas- tx llc tax rates

start an llc texas

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

Tennessee – Tennessee LLC tax rate

Personal tax: 7%
Excise tax: 6.5% of taxable net income
Franchise tax: 0.25% on the tangible value of the property

Utah – ut llc tax rates

Personal tax: 5%
Corporate tax: 5%

Virginia- va llc tax rates

start an llc VA

Personal tax: 2-5.75%
Corporate tax: 6%

Vermont llc tax rates

Personal tax: 3.55-9.4%
Corporate tax: 6-8.5%

Washington – Washington LLC tax rate

Personal tax: NA
Gross receipts tax: 1.5% on earned revenue of $35,000 in gross receipts

West Virginia – wv llc tax rates

Personal tax: 3-6.5%
Corporate tax: 8.5%

Wisconsin llc tax rates

Corporate tax: 7.9%
Personal tax: 7.75%

Wyoming llc tax rates

Personal tax: NA
Corporate tax: NA

Sum Up

Remember that the states that do not mandate income tax include Florida, Tennessee, Texas, Nevada, Alaska, Wyoming, and Washington. In retrospect, if you plan to start an LLC, focus on corporate taxes and opt for the state that has little to no corporate taxation in place.

Like the best states, American Samoa offers a wide range of tax benefits to making an LLC. From the initial process to form an LLC online, to availing tax perks to optimizing operations, American Samoa serves as a solid option. You can go directly to LLC.AS.GOV to set up an LLC or a company like Zenbusiness?

American Samoa is the best state to form LLCs in 2022. Find out more information on how simple, efficient, and cost-effective it is to start an LLC in American Samoa and how it provides more added tax perks than other American states.

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