New Tax Foundation Report Shows MA is 11th Highest for Corporate Tax Rate at 8%

North Caroline at 2.5%, Florida at 5.5% and New Hampshire at 7.5%

The Tax Foundation released a new report today examining changes in the top marginal corporate tax rates paid in all 50 states. Massachusetts came in ranked at the 11th highest for its top corporate tax rate in the country. Only Wyoming and South Dakota do not impose this tax. The states which Massachusetts often finds itself losing to regarding economic competitiveness and outmigration rankings—North Carolina, Florida, and New Hampshire—each have lower corporate tax rates than Massachusetts. To read the full report, please click here.

“The high corporate tax rate in Massachusetts is higher than neighboring New England states of New Hampshire, Connecticut, and Rhode Island. For businesses that want to grow in New England, they will continue to weigh our state’s high tax rates and cost of living versus the rates in nearby states. Unless Beacon Hill takes action, the result will be more jobs and tax revenues leaving the state. Massachusetts cannot become economically competitive without lowering its corporate tax rate, we are losing not just in New England but also nationally,” noted Paul D. Craney, a spokesman for the Massachusetts Fiscal Alliance.

“North Carolina is trying to become one of the most economically competitive states not only in the south, but in the country as a whole. They continually attract major investment and see significant inflows of taxpayers from around the country and international companies. Part of their success is due to their lowering of their corporate tax rate to 2.5%. If Massachusetts ever wants to compete, it cannot ignore what North Carolina is doing,” continued Craney.

“Governor Maura Healey and State House politicians made some very minor tax reform in 2023, but they did not lower the corporate tax rate. It’s time for Massachusetts State House leaders to drastically lower broad-based taxes to make our state more competitive, and they can do so by lowering the corporate tax rate,” concluded Craney.

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