On March 1, 2022, Governor Reynolds signed House File 2317. Division IX of the bill contains a provision outlining a possible reduction in corporate income tax rates if a certain threshold is met. If the Department of Management determines that net corporate income tax receipts exceed $700 million for the immediately preceding fiscal year, the Department will calculate what corporate income tax rates would have generated $700 million in net corporate income tax receipts in that fiscal year. Those rates will then apply to tax years beginning on or after the next January 1. This process will continue until the corporate income tax rate is 5.5% for all corporate taxable income. All rates as determined by the Department must be rounded down to the nearest 1/10th of 1 percent.
Corporate Income Tax Rates - On or after January 1, 2024
Effective for tax years beginning on or after January 1, 2024, the corporate income tax rates are as follows:
| Bracket | Tax Rate |
|---|---|
| $0- $25,000 | 5.5% |
| $25,001- $100,000 | 5.5% |
| $100,001- $250,000 | 7.1% |
| > $250,000 | 7.1% |
Corporate Income Tax Rates - On or after January 1, 2023 and before January 1, 2024
Effective for tax years beginning on or after January 1, 2023 and before January 1, 2024, the corporate income tax rates are as follows:
| Bracket | Tax Rate |
|---|---|
| $0- $25,000 | 5.5% |
| $25,001- $100,000 | 5.5% |
| $100,001- $250,000 | 8.4% |
| > $250,000 | 8.4% |
Corporate Income Tax Rates - On or after January 1, 2021 and before January 1, 2023
The following corporate income tax rates were effective for tax years beginning on or after January 1, 2021 and before January 1, 2023. Fiscal years that began before January 1, 2023 will still be subject to these rates, even if the fiscal year ends after January 1, 2023.
| Bracket | Tax Rate |
|---|---|
| $0- $25,000 | 5.5% |
| $25,001- $100,000 | 5.5% |
| $100,001- $250,000 | 9.0% |
| > $250,000 | 9.8% |