A study by
Council on State Taxation
found that, contrary to popular belief, the tax burden on
California businesses is no heavier than the national average.
California's business tax rate of 4.7% is much lower
than Alaska's (13.8%) and beats New York (5.5%) and Florida
(5.3%). Even Texas, known for being business-friendly, has a
higher business tax rate (4.9%).
Although California's corporate income tax rate
is on the higher end, the rate is offset by various tax credits
such as one of the most generous R&D credits in the nation.
Most tax returns with R&D claims are
filed by small- and medium-sized businesses
your business tax bite can be lowered by these