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All US states

Small Business Financial Recovery — by State

Every state has its own tax credits, payroll rules, and missed-money traps. Pick your state for the specific incentives, leak patterns, and average recovery for businesses operating there.

Northeast

Midwest

Illinois

IL

4.95% flat individual + 1.5% replacement tax on pass-throughs. PTE election available. EDGE & Enterprise Zone credits.

Avg recovery: $22K–$72K/yr

Indiana

IN

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

Iowa

IA

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

Kansas

KS

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

Michigan

MI

4.25% flat individual, 6% corporate. PTE election available. Detroit and some cities add 1-2.4% local income tax.

Avg recovery: $14K–$48K/yr

Minnesota

MN

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

Missouri

MO

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

Nebraska

NE

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

North Dakota

ND

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

Ohio

OH

0-3.5% individual. NO corporate income tax. CAT 0.26% on gross receipts >$1M. Workers comp = state monopoly (BWC).

Avg recovery: $16K–$54K/yr

South Dakota

SD

No state income tax — strong advantage for owner-operators. Federal optimization is the primary lever.

Avg recovery: $12K–$42K/yr

Wisconsin

WI

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

South

Alabama

AL

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

Arkansas

AR

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

Delaware

DE

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

Florida

FL

No state income tax. Workers comp mandatory above 4 employees (1 in construction). Sales tax 6% + local.

Avg recovery: $18K–$62K/yr

Georgia

GA

5.39% flat (phasing to 4.99%). Strong Job Tax + Quality Jobs Credit. R&D credit can offset payroll withholding.

Avg recovery: $24K–$95K/yr

Kentucky

KY

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

Louisiana

LA

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

Maryland

MD

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

Mississippi

MS

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

North Carolina

NC

4.5% flat (phasing to 3.99% by 2026). Corporate 2.5% (phasing out by 2030). Among lowest in US.

Avg recovery: $15K–$50K/yr

Oklahoma

OK

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

South Carolina

SC

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

Tennessee

TN

No state income tax — strong advantage for owner-operators. Federal optimization is the primary lever.

Avg recovery: $12K–$42K/yr

Texas

TX

No state income tax. 0.375-0.75% franchise tax above $2.47M revenue threshold. Workers comp is optional.

Avg recovery: $22K–$78K/yr

Virginia

VA

2-5.75% individual, 6% corporate. PTE election available. Strong defense/government contracting incentives.

Avg recovery: $18K–$58K/yr

Washington, D.C.

DC

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

West Virginia

WV

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

West

Alaska

AK

No state income tax — strong advantage for owner-operators. Federal optimization is the primary lever.

Avg recovery: $12K–$42K/yr

Arizona

AZ

2.5% flat — among lowest non-zero rates in US. Corporate 4.9%. Strong R&D and quality jobs credits.

Avg recovery: $14K–$52K/yr

California

CA

1-13.3% individual income tax, 8.84% corporate, $800 minimum franchise tax for every entity.

Avg recovery: $28K–$94K/yr

Colorado

CO

4.4% flat. PTE election available. CO FAMLI 0.9% payroll. Job Growth Credit + Enterprise Zones available.

Avg recovery: $20K–$75K/yr

Hawaii

HI

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

Idaho

ID

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

Montana

MT

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

Nevada

NV

No state income tax — strong advantage for owner-operators. Federal optimization is the primary lever.

Avg recovery: $12K–$42K/yr

New Mexico

NM

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

Oregon

OR

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

Utah

UT

State income tax applies. PTE election may be available. Verify state-specific R&D and jobs credits.

Avg recovery: $12K–$42K/yr

Washington

WA

No income tax. B&O tax 0.471-1.5% on gross receipts. WA Cares 0.58% + PFML 0.74% payroll. Workers comp = state monopoly.

Avg recovery: $24K–$88K/yr

Wyoming

WY

No state income tax — strong advantage for owner-operators. Federal optimization is the primary lever.

Avg recovery: $12K–$42K/yr

Don't see deep coverage for your state?

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