What states levy franchise tax on corporations operating in those states?
Many states have a corporate income tax on the state level, however, in the following states, corporations may also be subject to franchise tax. For more details about each state's franchise tax requirements and rates, see the state DOR links included below. Be sure to check for additional requirements for each state in which a corporation must file.
AL Business Privilege and Corporate Share Tax
AL Business Privilege Tax FAQs
AR Corporate Franchise Tax
DE Corporate Franchise Tax
GA Corporate Income and Net Worth Tax
IL has an annual report, form BCA 14.05, on which franchise tax and fees are paid. This form, and the calculated taxes and fees, is administered and collected by the IL Secretary of State and thus is not supported in Drake Tax. IL also has a Corporate Income and Replacement tax form IL-1120 that is available in Drake Tax.
LA Corporate Income and Franchise Tax
MS Corporate Income Tax
NY Corporate Franchise Tax
NC Corporate Franchise Tax
OK Corporate Franchise Tax
TN Corporate Franchise Tax
TX Corporate Franchise Tax
States that have discontinued Corporate Franchise Taxes:
Kansas Franchise Tax was discontinued for tax years 2011 and after: KS Corporate Franchise Tax
Missouri Franchise Tax was discontinued for tax years beginning on or after January 1, 2016: MO Corporate Franchise Tax
Pennsylvania Franchise Tax was discontinued for tax years beginning on or after January 1, 2016: PA Corporate Franchise Tax
West Virginia Business Franchise Tax was discontinued for tax years beginning on or after January 1, 2015: WV Franchise Tax