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 17 April 2026 · Sources: Each state's revenue department (rates verified April 2026)
The headline: 32 states recognise the federal S election cleanly with no entity-level tax. 18 states add their own twist, and 6 of those genuinely change the C-Corp vs S-Corp answer for owners domiciled there: California, New Hampshire, New York, Tennessee, Texas, and Washington DC.
The Six 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
State S-election form
Federal automatic
Does not conform to QSBS. CA also imposes the 1.5% on top of federal pass-through. Highest S-Corp state cost in the US.
New Hampshire
Yes (with own tax)Entity-level tax
BPT 7.5% + BET 0.55%
Minimum tax
No minimum
State S-election form
Federal automatic
Both Business Profits Tax and Business Enterprise Tax apply to S-Corps. NH has no individual income tax but entity taxes are significant.
New York
ConditionalEntity-level tax
Fixed dollar minimum + MTA tax
Minimum tax
Varies by income
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. NYC imposes its own city corporate tax.
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. F&E excise is on net earnings; franchise is on greater of net worth or $1,000.
Washington DC
NoEntity-level tax
Corporate franchise 8.25%
Minimum tax
$250
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 Tax / Fee | State Form |
|---|---|---|---|---|
| Alabama | Yes | None | $100 ABI | Federal |
| Alaska | Yes | None | None | Federal |
| Arizona | Yes | None | None | Federal |
| Arkansas | Yes | None | None | Letter to DFA |
| California | Yes (own tax) | 1.5% net income | $800 | Federal |
| Colorado | Yes | None | None | Federal |
| Connecticut | Yes | None | $250 | Federal |
| Delaware | Yes | None | $50 annual report | Federal |
| Florida | Yes | None | $138.75 annual report | Federal |
| Georgia | Yes | None | $50 annual report | Federal |
| Hawaii | Yes | None | $25 | Federal |
| Idaho | Yes | None | None | Federal |
| Illinois | Yes | 1.5% personal property replacement tax | None | Federal |
| Indiana | Yes | None | None | Federal |
| Iowa | Yes | None | None | Federal |
| Kansas | Yes | None | None | Federal |
| Kentucky | Yes | LLET (if > $3M gross receipts) | $175 | Federal |
| Louisiana | Conditional | Franchise tax | $10 | Verify |
| Maine | Yes | None | None | Federal |
| Maryland | Yes | None | $300 | Federal |
| Massachusetts | Yes | Excise $2.60 per $1k value | $456 | Federal |
| Michigan | Yes | None (MBT repealed) | $25 | Federal |
| Minnesota | Yes | None | None | Federal |
| Mississippi | Yes | None | None | Federal |
| Missouri | Yes | None | None | Federal |
| Montana | Yes | None | None | Federal |
| Nebraska | Yes | None | None | Federal |
| Nevada | Yes | Commerce tax (if > $4M receipts) | $200 annual list | Federal |
| New Hampshire | Yes (own tax) | BPT 7.5% + BET 0.55% | None | Federal |
| New Jersey | Conditional | CBT minimum + BAIT | $500 | CBT-2553 |
| New Mexico | Yes | None | None | Federal |
| New York | Conditional | Fixed $ minimum + MTA | Varies | CT-6 |
| North Carolina | Yes | None | $200 | Federal |
| North Dakota | Yes | None | None | Federal |
| Ohio | Yes | CAT (if > $150k receipts) | $150 | Federal |
| Oklahoma | Yes | None | None | Federal |
| Oregon | Yes | CAT (if > $1M receipts) | $150 | Federal |
| Pennsylvania | Yes | None (CAP repealed) | None | Federal |
| Rhode Island | Yes | None | $400 | Federal |
| South Carolina | Yes | None | None | Federal |
| South Dakota | Yes | None (no income tax) | $50 annual report | Federal |
| Tennessee | Yes (own tax) | F&E: Excise 6.5% + Franchise 0.25% | $100 | Federal |
| Texas | Yes (own tax) | Franchise (margin) tax 0.75% | None below $2.47M | Federal |
| Utah | Yes | None | None | Federal |
| Vermont | Yes | None | None | Federal |
| Virginia | Yes | None | None | Federal |
| Washington | Yes | B&O tax (gross receipts) | Varies | Federal |
| Washington DC | No | Corporate franchise 8.25% | $250 | N/A |
| West Virginia | Yes | None | None | Federal |
| Wisconsin | Yes | None | None | Consent required |
| Wyoming | Yes | None (no income tax) | $62 annual report | Federal |
Rates verified April 2026. State tax laws change frequently. Verify current rates 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.