Small Business Financial Recovery — by State
Every state has its own tax credits, payroll rules, and missed-money traps. Pick your state for the specific incentives, leak patterns, and average recovery for businesses operating there.
Northeast
Connecticut
CTState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
Maine
MEState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
Massachusetts
MA5% flat + 4% surtax above $1M. PTE election available. PFML 0.88% payroll. Strong R&D and life sciences incentives.
New Hampshire
NHState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
New Jersey
NJState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
New York
NY4-10.9% state + 3-3.876% NYC. PTE election (NY PTET) saves federal SALT cap. PFL/DBL mandatory.
Pennsylvania
PA3.07% flat individual, 8.99% corporate (phasing to 4.99% by 2031). Philadelphia adds 3.75% wage tax.
Rhode Island
RIState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
Vermont
VTState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
Midwest
Illinois
IL4.95% flat individual + 1.5% replacement tax on pass-throughs. PTE election available. EDGE & Enterprise Zone credits.
Indiana
INState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
Iowa
IAState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
Kansas
KSState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
Michigan
MI4.25% flat individual, 6% corporate. PTE election available. Detroit and some cities add 1-2.4% local income tax.
Minnesota
MNState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
Missouri
MOState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
Nebraska
NEState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
North Dakota
NDState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
Ohio
OH0-3.5% individual. NO corporate income tax. CAT 0.26% on gross receipts >$1M. Workers comp = state monopoly (BWC).
South Dakota
SDNo state income tax — strong advantage for owner-operators. Federal optimization is the primary lever.
Wisconsin
WIState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
South
Alabama
ALState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
Arkansas
ARState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
Delaware
DEState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
Florida
FLNo state income tax. Workers comp mandatory above 4 employees (1 in construction). Sales tax 6% + local.
Georgia
GA5.39% flat (phasing to 4.99%). Strong Job Tax + Quality Jobs Credit. R&D credit can offset payroll withholding.
Kentucky
KYState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
Louisiana
LAState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
Maryland
MDState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
Mississippi
MSState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
North Carolina
NC4.5% flat (phasing to 3.99% by 2026). Corporate 2.5% (phasing out by 2030). Among lowest in US.
Oklahoma
OKState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
South Carolina
SCState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
Tennessee
TNNo state income tax — strong advantage for owner-operators. Federal optimization is the primary lever.
Texas
TXNo state income tax. 0.375-0.75% franchise tax above $2.47M revenue threshold. Workers comp is optional.
Virginia
VA2-5.75% individual, 6% corporate. PTE election available. Strong defense/government contracting incentives.
Washington, D.C.
DCState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
West Virginia
WVState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
West
Alaska
AKNo state income tax — strong advantage for owner-operators. Federal optimization is the primary lever.
Arizona
AZ2.5% flat — among lowest non-zero rates in US. Corporate 4.9%. Strong R&D and quality jobs credits.
California
CA1-13.3% individual income tax, 8.84% corporate, $800 minimum franchise tax for every entity.
Colorado
CO4.4% flat. PTE election available. CO FAMLI 0.9% payroll. Job Growth Credit + Enterprise Zones available.
Hawaii
HIState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
Idaho
IDState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
Montana
MTState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
Nevada
NVNo state income tax — strong advantage for owner-operators. Federal optimization is the primary lever.
New Mexico
NMState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
Oregon
ORState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
Utah
UTState income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.
Washington
WANo income tax. B&O tax 0.471-1.5% on gross receipts. WA Cares 0.58% + PFML 0.74% payroll. Workers comp = state monopoly.
Wyoming
WYNo state income tax — strong advantage for owner-operators. Federal optimization is the primary lever.
Don't see deep coverage for your state?
Every state gets the full diagnostic — federal R&D, Section 179, WOTC, QBI, sales tax nexus, and 4,200+ leak detectors run regardless. State-specific incentive coverage is being expanded continuously.
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