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.
Alabama
AL Business Privilege and Corporate Share Tax
AL Business Privilege Tax FAQs
Arkansas
AR Corporate Franchise Tax
Delaware
DE Corporate Franchise Tax
Georgia
GA Corporate Income and Net Worth Tax
Illinois
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.
Louisiana
LA Corporate Income and Franchise Tax
Mississippi
MS Corporate Income Tax
New York
NY Corporate Franchise Tax
North Carolina
NC Corporate Franchise Tax
Oklahoma
OK Corporate Franchise Tax
Tennessee
TN Corporate Franchise Tax
Texas
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.
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