For most states, corporate income taxes represent a slow growing source of revenue. A story in the January issue of Governing explores how Michigan and other states have experienced sharp drops in these tax collections. 

The Census Bureau collects tax data from states as part of its Annual Survey of State Government Finances. To see how these sources of revenue have changed over time, we’ve compiled financial data for each state dating back to 1950.

Corporate income taxes account for a small slice of a state’s total budget, ranging from just over 5 percent of total revenues in Illinois and New Hampshire to nothing in states that don’t collect any. On average, states’ reliance on such taxes has gradually dwindled over the past few decades:

The following table lists states’ net corporate income tax share of total revenues for fiscal years 2013, 2000 and 1990. (Collections can fluctuate in a given year; see third graph in data tool for complete historical data.)

State 2013 Share of Total Revenue 2000 Share of Total Revenue 1990 Share of Total Revenue
Nevada 0.0% 0.0% 0.0%
Texas 0.0% 0.0% 0.0%
Washington 0.0% 0.0% 0.0%
Wyoming 0.0% 0.0% 0.0%
Ohio 0.3% 1.1% 2.2%
South Dakota 0.6% 1.6% 2.0%
Louisiana 0.8% 1.2% 3.9%
Hawaii 1.0% 1.1% 2.2%
Missouri 1.0% 1.3% 2.4%
South Carolina 1.3% 1.4% 1.7%
Alabama 1.3% 1.4% 2.0%
Michigan 1.3% 4.8% 7.8%
Oregon 1.4% 1.9% 1.8%
Georgia 1.5% 2.4% 3.6%
New Mexico 1.5% 1.5% 1.3%
Virginia 1.5% 1.9% 2.2%
Rhode Island 1.7% 1.3% 2.2%
West Virginia 1.7% 2.5% 5.0%
Vermont 1.7% 1.3% 1.7%
Arizona 1.8% 3.2% 2.1%
Utah 1.8% 1.7% 2.2%
Maine 1.8% 2.4% 1.8%
Connecticut 1.8% 2.4% 7.1%
Iowa 1.9% 1.9% 3.0%
Arkansas 1.9% 2.2% 2.9%
Mississippi 1.9% 1.9% 2.2%
50 state average 2.0% 2.3% 3.0%
Indiana 2.0% 4.5% 3.0%
Wisconsin 2.1% 1.8% 2.8%
Colorado 2.1% 2.0% 1.6%
Idaho 2.1% 2.3% 3.0%
Kansas 2.1% 2.6% 4.1%
Montana 2.1% 2.4% 3.5%
North Carolina 2.1% 3.5% 4.2%
Florida 2.2% 2.3% 2.9%
Oklahoma 2.2% 1.5% 1.3%
Kentucky 2.3% 1.6% 3.2%
Maryland 2.3% 2.0% 2.4%
New York 2.3% 2.5% 2.9%
California 2.4% 3.8% 5.5%
Nebraska 2.4% 2.3% 2.3%
Pennsylvania 2.5% 3.1% 4.0%
North Dakota 2.6% 2.4% 2.6%
Minnesota 3.0% 3.0% 3.6%
New Jersey 3.4% 3.2% 4.9%
Massachusetts 3.4% 4.1% 5.1%
Delaware 3.5% 4.7% 5.1%
Tennessee 3.9% 3.2% 3.6%
Alaska 4.5% 5.1% 3.3%
Illinois 5.3% 4.7% 3.8%
New Hampshire 6.8% 6.3% 6.5%

SOURCE: U.S. Census Bureau Annual Survey of State Government Finances Nationally, the Census survey suggests inflation-adjusted net corporate income revenues have grown on average at about half the pace of total revenues over the past two decades. Generally, most sources of revenue increase over time as the population and demand for services expands.

Another way to gauge corporate taxes is to compare them to what states are collecting from tax returns filed by individuals. Of the 43 states with income taxes, individual income tax collection growth (measured as a percentage change) outpaced corporate tax revenues in 31 states since 1990.

States like Connecticut, Louisiana, Michigan and Ohio have seen real corporate income revenues decline by more than 50 percent over this time period, while collections from individual income returns still increased. It should be noted, though, that any gross receipts collected from these states are not included in the Census tax revenue figures.

State Income Tax Data

Select a state to view its corporate and individual income tax revenue data:

Please see the full article for this interactive content.