State tax guides
Where your startup operates changes what it owes.
Incorporating in Delaware doesn’t settle your state taxes. Employees, offices and sales in other states create filing obligations there too. Pick a state for rates, nexus rules, credits and deadlines.
California
8.84% corporate tax and an $800 minimum franchise tax, including for Delaware corporations doing business there.
Read the California guideNew York
State business corporation franchise tax plus a separate New York City corporate tax for NYC companies.
Read the New York guideTexas
No corporate income tax. The franchise (margin) tax applies above the no-tax-due revenue threshold.
Read the Texas guideDelaware
Annual franchise tax and report due March 1. Most startups owe the $400 minimum under the assumed par value method.
Read the Delaware guideWashington
No corporate income tax. Business and occupation (B&O) tax applies to gross receipts.
Read the Washington guideMassachusetts
8% corporate excise, a refundable research credit for some life sciences companies, and sales tax on SaaS.
Read the Massachusetts guideColorado
Flat corporate income tax plus home-rule cities, such as Denver, that run their own sales tax.
Read the Colorado guideFlorida
5.5% corporate income tax and no personal income tax for founders.
Read the Florida guideIllinois
Corporate income tax plus the personal property replacement tax, and an annual franchise tax.
Read the Illinois guide
Comparing where to incorporate? See Delaware vs. other states.