According to The Tax Foundation which released its annual comparison of state corporate tax rates on Tuesday, the Garden State’s top marginal rate remains fixed at 11.5 percent- the highest in the nation. This rate stands nearly five percentage points higher than the national average of 6.57 percent among states that impose the tax.
And while New Jersey holds its position at the top of the bracket, four states—Georgia, Nebraska, North Carolina, and Pennsylvania—implemented scheduled corporate tax cuts effective Jan. 1, 2026.
The move toward lower rates was most pronounced in North Carolina, which now boasts a flat rate of just 2.0 percent, the lowest in the nation. This contrast highlights a growing geographic divide in corporate fiscal policy:
The High-Tax Tier: New Jersey (11.5%) is joined by Alaska, Illinois, and Minnesota as the only states levying rates of 9 percent or higher.
The Low-Tax Tier: Thirteen states now maintain top rates at or below 5 percent, including neighbors like Pennsylvania, which is currently in the midst of a multi-year phased reduction (dropping to 7.49% this year).
