US Corporate Tax Rates vs. All OECD Countries

Comparing US Corporate Tax Rates to 30 OECD Countries (2008)
OECD stands for the international Organisation for Economic Co-operation and Development, an organization of thirty (30) countries that accept the principles of representative democracy and free-market economy. (Wikipedia)

OECD Overall RankCountry/StateFederal Rate AdjustedTop State Corporate Tax RateCombined Federal and State Rate (Adjusted) (a)US Rank
 New Jersey359.3641.16
 Rhode Island35940.97
 West Virginia35940.98
 New Hampshire358.540.514
 New Mexico357.639.918
 New York357.539.920
 North Dakota35739.624
 North Carolina356.939.526
2United States356.5739.27 
 Washington *356.439.231
 Michigan *35638.933
 South Carolina35538.343
 Texas *351.636.047
 South Dakota35035.049
8New Zealand33033 
12United Kingdom30030 
16South Korea **252.527.5 
23Czech Republic24024 
28Slovak Republic19019 
OECD Overall RankCountry/StateFederal Rate AdjustedTop State Corporate Tax RateCombined Federal and State Rate (Adjusted) (a)US Rank
*Michigan, Texas and Washington have gross receipts taxes rather than traditional corporate income taxes. For comparison purposes, we converted the gross receipts taxes into an effective CIT rate. See Tax Foundation Notes (link below) for methodology.
** On June 3, 2008, South Korea’s Ministry of Strategy and Finance announced that it will cut the maximum corporate tax rate from 25% to 22% to stimulate economic growth. (Source: Xinhua)
(a) Combined rate adjusted for federal deduction of state taxes paid

Data compiled from:
Source: OECD,

6 thoughts on “US Corporate Tax Rates vs. All OECD Countries

  1. Wow!
    I am surprised. After constantly telling the Europeans the US is the place to do business and to enjoy freedom, I feel like I’ve just stepped in it.

    And this is before the Obama tax hike?
    And then there’s cap and trade for energy use that will be piled on top of that?
    Hello mass unemployment!

  2. This chart is a bit misleading for Canada, because there are two rates:
    1. Small businesses (less than $250,000 in revenue).
    2. All other businesses.

    The small business rate is significantly lower. In addition, each province has a different income tax rate.

    In British Columbia, for example, the combined rate for small business is well under 20%.

  3. Thanks for the additional detail “rhg.” Your information makes Canada look even better. The OCED data was averaged across all the various businesses and corporations for each country, so the lower rates for some regions and for lower income levels makes sense.

  4. I have a question. Someone told me that US Corps have many writeoffs/loopholes so American corporations do not pay at highest rate ( or second according to your chart) Is there any truth to this?

  5. LBB, Companies are allowed to deduct their business expenses (write-offs) from their gross revenues to determine their real earnings. That’s how every corporation, business, sole-proprietorship, and self-employed individual determines what net earnings they have earned. It would make no sense to tax them on their gross revenues.

    Often, for quite a few businesses (especially start-ups, mismanaged companies, or during bad economic times) in certain years, their expenses equal or exceed gross revenues. In those years, their real earnings are zero or below zero, therefore they do not pay any corporate tax, and they shouldn’t because they did not earn anything. It would be vastly unethical and illogical for them to pay taxes on zero real income.

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