Knowledge Base

14929: 1120 - States with Franchise Tax

1120 Corporation

What states levy franchise tax on corporations operating in those states? 

Many states have a corporate income tax on the state level, however, in the following states, corporations may also be subject to franchise tax. For more details about each state's franchise tax requirements and rates, see the state DOR links included below. Be sure to check for additional requirements for each state in which a corporation must file. 


AL Business Privilege and Corporate Share Tax

AL Business Privilege Tax FAQs


AR Corporate Franchise Tax


DE Corporate Franchise Tax


GA Corporate Income and Net Worth Tax


IL has an annual report, form BCA 14.05on which franchise tax and fees are paid. This form, and the calculated taxes and fees, is administered and collected by the IL Secretary of State and thus is not supported in Drake Tax. IL also has a Corporate Income and Replacement tax form IL-1120 that is available in Drake Tax. 


LA Corporate Income and Franchise Tax 


MS Corporate Income Tax

New York

NY Corporate Franchise Tax

North Carolina

NC Corporate Franchise Tax


OK Corporate Franchise Tax


TN Corporate Franchise Tax


TX Corporate Franchise Tax


States that have discontinued Corporate Franchise Taxes:  

Kansas Franchise Tax was discontinued for tax years 2011 and after: KS Corporate Franchise Tax

Missouri Franchise Tax was discontinued for tax years beginning on or after January 1, 2016.

Pennsylvania Franchise Tax was discontinued for tax years beginning on or after January 1, 2016: PA Corporate Franchise Tax

West Virginia Business Franchise Tax was discontinued for tax years beginning on or after January 1, 2015:
WV Franchise Tax

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