Best States for LLC Taxes in 2025: Complete Ranking
2026-04-03 · 6 min read · Guide
Which States Have the Lowest LLC Taxes?
Choosing where to form your LLC can save you thousands of dollars each year. States like Wyoming, South Dakota, and Nevada have no state income tax, making them popular for business formation.
Top 5 Lowest-Tax States for LLCs
1. Wyoming — No corporate tax, no personal income tax, minimal fees
2. South Dakota — Zero income tax, low filing fees
3. Nevada — No corporate income tax, but has a commerce tax for larger businesses
4. Florida — No personal income tax, 5.5% corporate rate
5. Texas — No income tax, but has a franchise tax on larger businesses
What About Delaware?
Delaware is famous for business formation, but it does have an 8.7% corporate tax rate and 6.6% top personal income tax. It is popular for its business-friendly courts, not necessarily its tax rates.
How to Choose
Use our tax calculator to compare your specific industry and revenue bracket across all states. The best state depends on your business type, revenue, and personal situation.
Our team analyzes data from IRS & Tax Foundation to deliver accurate, up-to-date information. All data is verified and cross-referenced with official sources.