State Tax Guide
S Corp Tax by State 2026: All 50 States and DC, With the Real Numbers
Most articles say “check your state.” This page gives you the actual numbers: CA $800 + 1.5%, NH BPT/BET, NY conditional recognition, TN F&E, TX margin tax, DC non-recognition.
Updated October 2026 · Sources: each state's revenue department or statute (table checked October 2026)
The headline: Most states follow the federal S election with no entity-level income tax on a typical S corp. A minority add a minimum tax, franchise tax or gross-receipts tax, and five genuinely change the C-Corp vs S-Corp answer for owners operating there: California, New Hampshire, New York (and New York City), Tennessee, and Washington DC.
The Five States That Genuinely Change the Math
California
Yes (with own tax)Entity-level tax
1.5% of net income
Minimum tax
$800 minimum franchise tax (not in a corporation's first taxable year)
State S-election form
Federal automatic
Does not conform to QSBS. CA imposes the 1.5% entity-level tax on top of the shareholders' personal income tax on the same pass-through income.
New Hampshire
Yes (with own tax)Entity-level tax
BPT 7.5% + BET 0.55%
Minimum tax
No minimum; BPT return required above $109,000 gross business income, BET above $298,000 gross receipts or enterprise value tax base (periods from 2025)
State S-election form
Federal automatic
Both Business Profits Tax and Business Enterprise Tax apply to S-Corps. NH has no tax on wages, and its Interest and Dividends Tax is repealed for periods beginning on or after 1 January 2025, so the business taxes are the main state cost.
New York
ConditionalEntity-level tax
Fixed dollar minimum (state) + NYC General Corporation Tax
Minimum tax
$25 to $4,500 by NY receipts
State S-election form
Form CT-6 required
Must file Form CT-6 to be recognised as NY S-Corp. Without it, taxed as C-Corp for NY purposes. New York City does not recognise the S election: an S corp doing business in the city pays the General Corporation Tax (8.85% of entire net income, or a higher alternative base).
Tennessee
Yes (with own tax)Entity-level tax
Excise 6.5% + Franchise 0.25%
Minimum tax
$100
State S-election form
Federal automatic
Franchise and Excise (F&E) taxes apply to S-Corps. Excise is 6.5% of net earnings; franchise is 0.25% of Tennessee net worth, $100 minimum (the property measure was repealed for tax years ending on or after 1 January 2024).
Washington DC
NoEntity-level tax
Corporate franchise 8.25%
Minimum tax
$250 (DC gross receipts $1M or less); $1,000 above $1M
State S-election form
N/A (DC treats as C-Corp)
DC does not recognise the federal S election. S-Corps operating in DC pay DC corporate franchise tax as C-Corps.
Complete 50-State and DC Table
| State | Recognises Federal S Election | Entity-Level Tax | Minimum Entity-Level Tax | State Form |
|---|---|---|---|---|
| Alabama | Yes | Business privilege tax | None if the tax is $100 or less | Federal |
| Alaska | Yes | None (BIG/passive only) | None | Federal |
| Arizona | Yes | None (unless federally taxed) | None | Federal |
| Arkansas | Yes | Franchise tax | $150 | Federal |
| California | Yes (own tax) | 1.5% net income | $800 (not in first year) | Federal |
| Colorado | Yes | None | None | Federal |
| Connecticut | Yes | None | None | Federal |
| Delaware | Yes | Franchise tax | $175 (authorized shares) or $400 (assumed par value) | Federal |
| Florida | Yes | None (unless federally taxed) | None | Federal |
| Georgia | Yes | Net worth tax | None at net worth of $100,000 or less | Federal |
| Hawaii | Yes | None | None | Federal |
| Idaho | Yes | Minimum tax | $20 | Federal |
| Illinois | Yes | 1.5% personal property replacement tax | None | Federal |
| Indiana | Yes | None (BIG/passive only) | None | Federal |
| Iowa | Yes | None (BIG/passive only) | None | Federal |
| Kansas | Yes | None | None | Federal |
| Kentucky | Yes | LLET | $175 (receipts or profits of $3M or less) | Federal |
| Louisiana | Conditional | Corporate income tax may apply | None (franchise tax repealed 2026) | Federal; LA treatment differs |
| Maine | Yes | None (unless federally taxed) | None | Federal |
| Maryland | Yes | None | None | Federal |
| Massachusetts | Yes | Excise $2.60 per $1k value (+ income measure at $6M+ receipts) | $456 | Federal |
| Michigan | Yes | None | None | Federal |
| Minnesota | Yes | Minimum fee | $0 to $12,540 by MN property, payroll and sales (2025 tiers) | Federal |
| Mississippi | Yes | Franchise tax (repealed from 2028) | $25 | Federal |
| Missouri | Yes | None | None | Federal |
| Montana | Yes | None | None | Federal |
| Nebraska | Yes | Occupation tax (biennial) | $26 every two years | Federal |
| Nevada | Yes | Commerce tax (over $4M receipts) | None | Federal |
| New Hampshire | Yes (own tax) | BPT 7.5% + BET 0.55% | None | Federal |
| New Jersey | Yes | CBT minimum + BAIT (elective) | $375 to $1,500 by receipts | Federal (since 2022) |
| New Mexico | Yes | Franchise tax | $50 | Federal |
| New York | Conditional | Fixed $ minimum (+ NYC GCT) | $25 to $4,500 by receipts | CT-6 |
| North Carolina | Yes | Franchise tax | $200 | Federal |
| North Dakota | Yes | None | None | Federal |
| Ohio | Yes | CAT (over $6M receipts) | None | Federal |
| Oklahoma | Yes | None | None | Federal |
| Oregon | Yes | Minimum excise + CAT (over $1M) | $150 | Federal |
| Pennsylvania | Yes | None | None | Federal |
| Rhode Island | Yes | Minimum tax | $400 | Federal |
| South Carolina | Yes | Annual license fee | $25 | Federal |
| South Dakota | Yes | None (no income tax) | None | Federal |
| Tennessee | Yes (own tax) | F&E: Excise 6.5% + Franchise 0.25% of net worth | $100 | Federal |
| Texas | Yes (own tax) | Franchise (margin) tax 0.75% | None at or below $2.65M revenue | Federal |
| Utah | Yes | None | None | Federal |
| Vermont | Yes | Minimum entity tax | $250 | Federal |
| Virginia | Yes | None | None | Federal |
| Washington | Yes | B&O tax (gross receipts) | None | Federal |
| Washington DC | No | Corporate franchise 8.25% | $250 ($1,000 above $1M receipts) | N/A |
| West Virginia | Yes | None | None | Federal |
| Wisconsin | Yes | None | None | Federal (opt out via 5E) |
| Wyoming | Yes | None (no income tax) | None | Federal |
“Minimum entity-level tax” is the least tax the state charges the S corporation itself in a normal year. It excludes annual report and registration fees, which every state charges separately, and elective pass-through entity taxes. “BIG/passive only” means the state taxes the S corp only on built-in gains or excess passive income that is also taxed federally. State tax laws change frequently; verify with your state's revenue department before making decisions.
The “Form in Delaware, Operate in California” Math
Many founders form their corporations in Delaware (for VC reasons) but operate in California. The result: Delaware's $400 minimum franchise tax (assumed par value method) AND California's $800 minimum franchise tax AND California's 1.5% S-Corp franchise tax on California net income. A California-operated Delaware S-Corp with $200k net income owes approximately $1,200 in combined minimum franchise taxes plus $3,000 in California S-Corp tax ($200k x 1.5%).
For non-VC-track C-Corps, forming in Delaware while operating in California costs more than forming in California and is rarely justified. The Delaware advantage (Court of Chancery, predictable corporate law, investor familiarity) is meaningful for VC-backed startups and irrelevant for lifestyle businesses.