| Return |
| Corporate Income Tax Rates | |
| Band of Taxable Income (US$) | Rate (%) |
| 0 - 50,000 | 15 |
| 50,001 - 75,000 | 25 |
| 75,001 - 10,000,000 | 34 |
| Over 10,000,000 | 35 |
| MACRS Depreciation Methods | |
| Type of Property | Depreciation Method |
| 3-, 5-, 7-, and 10-year classes of personal property | 200% declining-balance method |
| 15- and 20-year classes of personal property | 150% declining-balance method |
| Residential property (useful life of 27.5 years) | Straight-line method over useful life |
| Nonresidential property (useful life of 39 years) | Straight-line method over useful life |
Personal Income Tax Rates |
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Band of Taxable Income |
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| Married Filing Jointly (US$) | Married Filing Separately (US$) | Head of Household (US$) | Single (US$) |
Rate Applicable to Band (%) |
| 0 - 36,900 | 0 - 18,450 | 0 - 29,600 | 0 - 22,100 | 15 |
| 36,901 - 89,150 |
18,451 - 44,575 |
29,601 - 76,400 |
22,101 - 53,500 |
28 |
| 89,151 - 140,000 |
44,576 - 70,000 |
76,401 - 127,500 |
53,501 - 115,000 |
31 |
| 140,001 - 250,000 |
70,001 - 125,000 |
127,501 - 250,000 |
115,001 - 250,000 |
36 |
| Over 250,000 |
Over 125,000 |
Over 250,000 |
Over 250,000 |
39.6 |
Withholding Tax Rates for Treaty Countries |
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|
Dividendsa |
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| Country of Recipient |
Major Rate (%) | Minor Rate (%) | Major Holding (%) |
Interest (%) | Royalties (%) | |||||
| Australiab | 15 | 15 | - | 10 | 10 | |||||
| Austria | 5 | 15 | 95 | - | -c | |||||
| Barbadosd | 5 | 15 | 10 | 5 | 5 | |||||
| Belgiumd | 5 | 15 | 10 | 15 | -e | |||||
| Canada | 10 | 15 | 10 | 15 | 10f | |||||
| China (People's Republic of)d | 10 | 10 | - | 10 | 10g | |||||
| Cyprusb | 5 | 15 | 10 | 10 | -. | |||||
| Czech Republicd | 5 | 15 | 10 | - | 10h | |||||
| Denmark | 5 | 15 | 95 | - | -. | |||||
| Egypt | 5 | 15 | 10 | 15 | 15 | |||||
| Finlandd | 5 | 15 | 10 | - | 5h | |||||
| Franced | 5 | 15 | 10 | - | 5h | |||||
| Germanyd | 5 | 15 | 10 | - | -e | |||||
| Greece | 30 | 30 | - | 30i | -e | |||||
| Hungary | 5 | 15 | 10 | - | -. | |||||
| Iceland | 5 | 15 | 10 | - | -e | |||||
| Indiad | 15 | 25 | 10 | 15j | 20k | |||||
| Indonesia | 15 | 15 | - | 15 | 15k | |||||
| Ireland | 5 | 15 | 95 | 30i | -. | |||||
| Israel | 12.5 | 25 | 10 | 17.5j | 15l | |||||
| Italyd | 5m | 15m | 50 | 15 | 10n | |||||
| Jamaicab | 10 | 15 | 10 | 12.5 | 10 | |||||
| Japan | 10 | 15 | 10 | 10 | 10 | |||||
| Korea (Republic of) | 10 | 15 | 10 | 12 | 15l | |||||
| Luxembourg | 5o | 15o | 50 | -o | -o | |||||
| Malta | 5 | 15 | 10 | 12.5 | 12.5f | |||||
| Mexicop | 5 | 15 | 10 | 15q | 10 | |||||
| Morocco | 10 | 15 | 10 | 15 | 10 | |||||
| Netherlandsp | 5 | 15 | 10 | - | -e | |||||
| New Zealandb | 15 | 15 | - | 10 | 10 | |||||
| Norway | 15 | 15 | - | - | -e | |||||
| Pakistan | 15 | 30 | 50 | 30 | -e | |||||
| Philippines | 20 | 25 | 10 | 15r | 15 | |||||
| Poland | 5 | 15 | 10 | - | 10 | |||||
| Romania | 10 | 10 | - | 10 | 15l | |||||
| Russiad | 5 | 10 | 10 | - | - | |||||
| Slovakiad | 5 | 15 | 10 | - | 10h | |||||
| Soviet Unions | 30 | 30 | - | - | - | |||||
| Spaind | 10 | 15 | 25 | 10 | 10t | |||||
| Sweden | 5 | 15 | 50 | - | - | |||||
| Switzerland | 5 | 15 | 95 | 5 | - | |||||
| Trinidad and Tobago | 30 | 30 | - | 30 | 15f | |||||
| Tunisiad | 14 | 20 | 25 | 15 | 15k | |||||
| United Kingdom | 5 | 15 | 10 | - | -e | |||||
| a. There is a limited exception for a portion of dividends paid by a US corporation that conducts business primarily outside the United States. Some treaties permit the lower rate for majority holdings only if no more than 25% of gross income is from passive sources, and some require a minimum holding period for the lower rates to apply. Some treaties have generally higher rates for dividends paid by regulated investment companies (mutual funds) and real estate investment trusts. | ||||||||||
| b. Treaty rates apply only to companies in which more than 75% of beneficial interest or shares is owned by residents of either contracting state or to companies traded on a recognized stock exchange in either country. Otherwise, nontreaty rates apply. | ||||||||||
| c. Film royalties are taxed at 10%. | ||||||||||
| d. Treaty rates apply only to companies in which more than 50% of beneficial interest or shares is owned by residents of either contracting states or to companies traded on a recognized stock exchange in either country. Otherwise, nontreaty rates apply. | ||||||||||
| e. Film royalties are taxed at the nontreaty rate. | ||||||||||
| f. Copyright royalties, excluding film royalties, are exempt. | ||||||||||
| g. Royalties related to the rental of industrial, commercial, or scientific equipment are taxed at the effective rate of 7%. | ||||||||||
| h. Copyright royalties are exempt. | ||||||||||
| i. This rate applies if the recipient owns more than 50% of the voting stock of the payer; otherwise, the payment is exempt. | ||||||||||
| j. Interest on bank loans is taxed at 10%. | ||||||||||
| k. Certain industrial, commercial, or scientific equipment royalties are taxed at 10%. | ||||||||||
| l. Copyright royalties are taxed at 10%. | ||||||||||
| m. The rate is 10% if the recipient has a holding of between 10% and 50% in the payer. | ||||||||||
| n. Film royalties are taxed at 8%, tangible movable property is taxed at 7%, and other copyright royalties are taxed at 5%. | ||||||||||
| o. The nontreaty rate applies if the recipient is a Luxembourg holding company. | ||||||||||
| p. Anti-treaty-shopping rules limit the situations in which treaty rates can be obtained. | ||||||||||
| q. Interest on bonds, securities, and bank and insurance company loans is taxed at 10%. | ||||||||||
| r. Interest on public bond issues is taxed at 10%. | ||||||||||
| s. The treaty with the former Soviet Union remains in effect for Armenia, Azerbaijan, Belarus, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan. A separate treaty is in effect with Russia. | ||||||||||
| t. Film royalties; industrial, commercial, or scientific equipment royalties; and scientific copyright royalties are taxed at 8%. Other copyright royalties are taxed at 5%. | ||||||||||
State Tax Rates |
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|
Income Tax |
|
|
|
State |
Individuals |
Corporations (%) |
Inheritance or Estate Tax (%) |
Sales and Use |
| Alabama | 2-5 | 5 | -b | 4a |
| Alaska | - | 1-9.4 | -b | -c |
| Arizona | 3.25-6.9 | 9 | -b | 5a |
| Arkansas | 1-7 | 1-6.5 | -b | 4.5a |
| California | 1-11 | 9.3 | -b | 7.25a,d |
| Colorado | 5 | 5 | -b | 3a |
| Connecticut | 4.5 | 11.25 | 0-20.2 | 6 |
| Delaware | 3.2-7.7 | 8.7 | 0-16 | - |
| District of Columbia | 6-9.5 | 9.5 + 2.5 surtax | -b | 5.75 |
| Florida | - | 5.5 | -b | 6a |
| Georgia | 1-6 | 6 | -b | 4a |
| Hawaii | 2-10 | 4.4-6.4 | -b | 4 |
| Idaho | 2-8.2 | 8 | -b | 5a |
| Illinois | 3 | 4.8 | -b | 6.25a |
| Indiana | 3.4 | 3.4 | 0-20 | 5 |
| Iowa | 0.4-9.98 | 6-12 | 0-15 | 5a |
| Kansas | 3.5-7.75 | 4 + 3.35 surtax | 0-15 | 4.9a |
| Kentucky | 2-6 | 4-8.25 | 0-16 | 6 |
| Louisiana | 2-6 | 4-8 | 0-10 | 4a |
| Maine | 2-8.5 | 3.5-8.93 | -b | 6 |
| Maryland | 2-6 | 7 | 0-10 | 5 |
| Massachusetts | 5.95 on earned income and annuities; 12 on interest, dividends, and capital gains | 8.33 + 14 surtax | 0-16 | 5 |
| Michigan | 4.4 | 2.3 | -b | 6 |
| Minnesota | 6-8.5 | 9.8 | -b | 6a |
| Mississippi | 3-5 | 3-5 | 0-16 | 7 |
| Missouri | 1.5-6 | 6.25 | -b | 4.225a |
| Montana | 2-11 | 6.75 | 0-32 | - |
| Nebraska | 2.62-6.99 | 5.58-7.81 | 0-18 | 5a |
| Nevada | - | - | -b | 6.5a,d |
| New Hampshire | 5 on interest and dividends | 7 | 0-18 | - |
| New Jersey | 1.9-6.65 | 9 | 0-16 | 6 |
| New Mexico | 1.8-8.5 | 4.8-7.6 | -b | 5a |
| New York | 4-7.875 | 9 + 10 surtaxe | 0-21 | 4a |
| North Carolina | 6-7.75 | 7.75 | 0-17 | 4a |
| North Dakota | 2.67-12 | 3-10.5 | -b | 5 |
| Ohio | 0.743-7.5 | 5.1-8.9 | 0-7 | 5a |
| Oklahoma | 0.5-7 | 6 | 0-15 | 4.5a |
| Oregon | 5-9 | 6.6 | -b | - |
| Pennsylvania | 2.8 | 10.99 | 3-15 | 6a |
| Rhode Island | 27.5 of federal income tax | 9 | -b | 7 |
| South Carolina | 2.5-7 | 5 | -b | 5a |
| South Dakota | - | - | 0-30 | 4a |
| Tennessee | 6 on bond interest and dividends | 6 | 0-9.5 | 6a |
| Texas | - | Greater of 0.25 net capital or 4.5 net earned surplus | -b | 6.25a |
| Utah | 2.55-7.2 | 5 | -b | 5.875a,d |
| Vermont | 25 of federal income tax | 5.5-8.25 | -b | 5 |
| Virginia | 2-5.75 | 6 | -b | 4.5d |
| Washington | - | - | -b | 6.5a |
| West Virginia | 3-6.5 | 9 | -b | 6 |
| Wisconsin | 4.9-6.93 | 7.9 + 5.5 surtax | -b | 5a |
| Wyoming | - | - | -b | 4a |
| a. Local sales taxes may also be imposed. | ||||
| b. Tax is equivalent to the state credit allowed on federal estate tax. | ||||
| c. There is no state tax, but local sales taxes are imposed. | ||||
| d. Includes uniform local tax rate. | ||||
| e. Surtax is 5% from 1 July 1995 through 30 June 1996. | ||||
| Return |
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