Report: Missouri ranks 15th for corporate income taxes

Missouri has the 15th most expensive corporate income taxes among the 44 states and city of Washington, D.C., that have them, according to a report by the Tax Foundation, a nonprofit tax policy think tank.

Missouri’s tax rate is 6.25 percent, the same as Indiana’s. Corporate income tax rates range from 3 percent in North Carolina to 12 percent in Iowa, according to the report.

All but two of the states that touch Missouri have higher corporate income tax rate levels than the Show-Me State. Oklahoma and Kentucky both have 6 percent rates.

Tax Foundation officials say with the national tax rate on corporations at 35 percent, many states have totals above 40 percent. The Tax Foundation advocates for simplicity, transparency, neutrality and stability for taxes.  

"Though often thought of as a major tax type, corporate income taxes account for just 5.4 percent of state tax collections and 2.7 percent of state general revenue," said Morgan Scarboro, Tax Foundation policy analyst, in a news release announcing the report.

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