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Corporate income taxes are levied in 44 states. Though often thought of as a major tax type, corporate income taxes accounted for an average of just 7.07 percent of state tax collections and 4.04 percent of state general revenue in final year 2021. And while these figures are not high, they represent a substantial increase over prior years. Corporate income taxes accounted for 2.26 percent of general revenue in FY 2020, which is more in line with historical norms.
