SK Financial — Knowledge Base
Resources &
Reference.
Federal tax rate tables, state-by-state income tax and LLC renewal data, and essential guides — all in one place. Bookmark this page for quick reference during tax season and beyond.
Articles & Knowledge Base
Plain-English guides on U.S. company formation, tax and compliance — for residents and non-residents alike.
The Complete ITIN Guide for Non-US Residents
Everything about the ITIN in one guide: what it is, ITIN vs SSN, applying, using it with your LLC, taxes, renewals, and the mistakes that cause rejections.
Why your ITIN can’t wait →Opening a U.S. Bank Account as a Non-Resident
Remote-friendly banks, the documents you need, and a step-by-step path to a working U.S. business account — without flying to America.
Get banked without flying in →Non-Resident U.S. Tax Obligations: Form 5472 & 1040-NR
What non-resident owners actually owe the IRS, what ECI means for you, and the Form 5472 filing foreign-owned LLCs most often miss.
Avoid the $25,000 penalty →Best State to Form an LLC in 2026 — Prices & Tax
Our recommended states — Best: TX, WY, MO, MT · Also good: NY, MI, KY — with formation prices, renewal costs, and the one tax concept every owner should understand: ECI.
Don’t form in the wrong state →LLC vs S-Corp vs C-Corp: Choosing the Right Structure
The definitive comparison — taxation, liability, investors, payroll and conversion paths — so you pick the structure that fits where your business is going.
Stop overpaying the IRS →BOI Reporting Requirements: What Every LLC Owner Must Know
BOI reporting explained: who must file, what to disclose, deadlines, and penalties for missing them.
$591/day if you skip this →Sales Tax After Wayfair: What Every Online Seller Must Know
Sales tax after Wayfair: economic nexus, where you owe, and how to register and file without drowning.
Are you owed — or owing — sales tax? →Year-End Tax Planning: 10 Actions Before December 31
The year-end moves that actually cut your tax bill — timed correctly, before December 31.
Cut your bill before Dec 31 →Contractors, Employees & 1099s: The Compliance Guide
Classify workers correctly, then survive 1099 season: deadlines, thresholds, penalties and a step-by-step January checklist.
1099 or W-2? Get it right →Outsourced Accounting: What It Covers & How to Start
Clean books, the reports that matter, and when DIY bookkeeping starts costing you money.
When DIY books start costing you →State Tax vs Federal Tax vs Sales Tax: What's the Difference?
Federal, state income, and sales tax — who charges what, how the three stack for a U.S. business, and why a no-income-tax state still is not tax-free.
Three taxes, one clear answer →W-9 vs W-8BEN: Which Form Do You Need?
Which form a U.S. person versus a foreign person sends a U.S. payer, how it controls 30% withholding and treaty rates, and the mistakes that get payments held.
Sending the wrong form? →Bonus Depreciation: How It Works & What's Changing
How first-year expensing works, what qualifies, Section 179 vs bonus — and how the 2025 OBBBA permanently restored 100% bonus depreciation.
Write off 100% this year →International Students & Form 1040-NR: The U.S. Tax Filing Guide
F-1 and J-1 students are usually nonresident aliens who must file Form 1040-NR and Form 8843 — even with no income. Deadlines, treaties, FICA refunds, and Sprintax explained.
Students: don’t skip this filing →Investing in U.S. Stocks: A Beginner's Guide (Nvidia, Apple, Tesla & More)
How shares work, how a beginner actually starts, the SpaceX question, and what non-residents owe in U.S. tax on Nvidia, Apple, Microsoft, Google, and Tesla.
Own a slice of Nvidia & Apple →Tax Rates & Reference Tables
Prefer raw numbers? Federal brackets, all-50-state fees and sales-tax rates live below.
Federal Tax Rates & Thresholds⤤ LINK
Federal Income Tax — Individuals (2025)
2025| Rate | Single | Married Jointly |
|---|---|---|
| 10% | Up to $11,925 | Up to $23,850 |
| 12% | $11,926 – $48,475 | $23,851 – $96,950 |
| 22% | $48,476 – $103,350 | $96,951 – $206,700 |
| 24% | $103,351 – $197,300 | $206,701 – $394,600 |
| 32% | $197,301 – $250,525 | $394,601 – $501,050 |
| 35% | $250,526 – $626,350 | $501,051 – $751,600 |
| 37% | Over $626,350 | Over $751,600 |
Corporate and Entity Tax Rates (2025)
2025| Entity | Rate | Notes |
|---|---|---|
| C-Corporation | 21% | Flat since TCJA 2018 |
| S-Corporation | Pass-through | Individual level |
| LLC (Single) | Pass-through | Schedule C |
| LLC (Multi) | Pass-through | Form 1065 |
| QBI Deduction | Up to 20% | Pass-through entities |
| Corporate AMT | 15% | Adjusted financial income |
| Capital Gains (LT) | 0, 15, or 20% | Income-based |
Payroll and Self-Employment Tax (2025)
2025| Tax | Employee | Employer | Self-Empl. |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | 12.4% |
| Medicare | 1.45% | 1.45% | 2.9% |
| Add'l Medicare | 0.9% | — | 0.9% |
| SS Wage Base | $176,100 (2025) | ||
| FUTA | — | 6% (first $7K) | — |
Standard Deductions and Key Limits (2025)
2025| Item | Amount |
|---|---|
| Standard Deduction — Single | $15,000 |
| Standard Deduction — MFJ | $30,000 |
| 401(k) Contribution Limit | $23,500 |
| IRA Contribution Limit | $7,000 ($8,000 if 50+) |
| HSA — Individual / Family | $4,300 / $8,550 |
| Annual Gift Tax Exclusion | $19,000 |
| Child Tax Credit | Up to $2,000/child |
| SALT Deduction Cap | $10,000 |
| Estate Tax Exemption | $13.99M |
State Tax, Renewals & No-Tax States⤤ LINK
Best: Texas — no state income tax, major market · Wyoming — no state income tax, minimal compliance · Missouri — low fees, simple upkeep · Montana — no sales tax
Also good: New York — largest market · Michigan — low-cost formation · Arizona — no annual report, member name public
| State | Income Tax | Annual LLC Fee 2026 | State Sales Tax | Key Notes |
|---|---|---|---|---|
| Wyoming | No Income Tax | $62/yr | 4% | Most popular LLC state; strong privacy; no franchise tax |
| Nevada | No Income Tax | $350/yr | 6.85% | Strong asset protection; no state corporate income tax |
| Florida | No Income Tax | $138.75/yr | 6% | Major business hub; personal income tax-free since 1855 |
| Texas | No Income Tax | No fee · PIR required | 6.25% + local | Franchise tax applies over $2.47M revenue |
| South Dakota | No Income Tax | $50/yr | 4.5% | No franchise tax; trust-friendly; very low maintenance |
| Alaska | No Income Tax | $100/yr | 0% | No state income tax AND no state sales tax — rare combination |
| Washington | No Income Tax | $70/yr | 6.5% | B&O gross receipts tax may apply; no personal income tax |
| Tennessee | No Income Tax | $300/yr | 7% | Eliminated income tax on wages in 2023; high sales tax |
| New Hampshire | No Income Tax | $100/yr | 0% | No income or sales tax; interest/dividends tax eliminated 2025 |
| Delaware | 2.2%–6.6% | $300/yr | 0% | Most popular for startups & VC; no sales tax; Court of Chancery |
| Montana | Up to 6.75% | $35/yr | 0% | No sales tax; member name public; very low LLC fee |
| Oregon | 4.75%–9.9% | $100/yr | 0% | No sales tax; CAT tax applies to receipts over $1M |
| New Mexico | 1.5%–5.9% | No Annual Report | 5% | No annual report requirement; low maintenance; growing hub |
| Missouri | Up to 4.8% | No Annual Report | 4.225% | No annual report for LLCs; one of lowest state sales tax rates |
| Alabama | 2%–5% | $100/yr | 4% | Corporate income tax at 6.5%; local sales tax can add up to 7% |
| Arizona | 2.5% flat | No fee · no report | 5.6% | No annual report; member name public; flat income tax since 2023 |
| Arkansas | 2%–4.7% | $150/yr | 6.5% | Progressive rate; manufacturing exemptions available |
| California | 1%–13.3% | $800 min/yr | 7.25% | Highest income tax; $800 minimum franchise tax; LLC fee up to $11,790 |
| Colorado | 4.4% flat | $10/yr | 2.9% | Lowest state sales tax in the US; flat income tax rate |
| Connecticut | 3%–6.99% | $80/yr | 6.35% | Capital stack tax; strong corporate governance laws |
| Georgia | 5.49% flat | $50/yr | 4% | Flat rate since 2024; fast-growing economy; Fortune 500 hub |
| Hawaii | 1.4%–11% | $51/yr | 4% | General Excise Tax (GET) at 4% covers most services; unique system |
| Idaho | Up to 5.8% | $100/yr | 6% | Single bracket above $2,500; manufacturing exemption available |
| Illinois | 4.95% flat | $75/yr | 6.25% | Flat income tax; Chicago local taxes add significant burden |
| Indiana | 3.05% flat | $31/yr | 7% | Very low LLC fee; flat income tax; phasing down to 2.9% by 2027 |
| Iowa | Up to 6% | $60/yr | 6% | Phased rate cuts; agricultural exemptions available |
| Kansas | 3.1%–5.7% | $55/yr | 6.5% | Local sales taxes among highest in country when combined |
| Kentucky | 4% flat | $15/yr | 6% | Very low annual fee; flat 4% individual and corporate rate |
| Louisiana | 1.85%–4.25% | $30/yr | 4.45% | Lowest annual LLC fee in the US; local taxes can be high |
| Maine | 5.8%–7.15% | $85/yr | 5.5% | Service-oriented economy; meals/lodging taxed at 9% |
| Maryland | 2%–5.75% | $300/yr | 6% | County income taxes add 2.25%–3.2%; strong professional services sector |
| Massachusetts | 5% | $520/yr | 6.25% | Surtax on income over $1M; strong innovation economy |
| Michigan | 4.05% flat | $25/yr | 6% | Less address requirement; lowest flat rate for a high-population state |
| Minnesota | 5.35%–9.85% | $0 | 6.875% | No LLC annual fee; high income tax for top earners; grocery exempt |
| Mississippi | 5% flat | $0 | 7% | No annual report fee; third-highest combined sales tax in US |
| Nebraska | Up to 5.84% | $26/yr | 5.5% | Phasing down to 3.99% by 2027; agricultural exemptions available |
| New Jersey | 1.4%–10.75% | $78/yr | 6.625% | Highest income tax for top earners; clothing exempt from sales tax |
| New York | 4%–10.9% | $9 / 2 yrs | 4% | Largest market; biennial filing; NYC adds local taxes up to 3.876% |
| North Carolina | 4.5% flat | $202/yr | 4.75% | Flat rate dropping to 3.99% by 2026; grocery food exempt |
| North Dakota | Up to 2.5% | $50/yr | 5% | Lowest income tax rate among states with an income tax |
| Ohio | 2.765%–3.99% | $99/yr | 5.75% | Commercial Activity Tax applies to gross receipts; food exempt |
| Oklahoma | 0.25%–4.75% | $25/yr | 4.5% | Low rates; groceries taxed at 4.5%; local rates typically 3–5% |
| Pennsylvania | 3.07% flat | $7/yr | 6% | Lowest flat income tax rate; clothing and food exempt from sales tax |
| Rhode Island | 3.75%–5.99% | $50/yr | 7% | Clothing under $250 exempt; manufacturing exemption available |
| South Carolina | Up to 6.4% | $25/yr | 6% | Phasing down to 6% by 2027; groceries taxed at reduced 0% |
| Utah | 4.65% flat | $20/yr | 4.85% | Low fees; flat income tax; food taxed at reduced 1.75% |
| Vermont | 3.35%–8.75% | $125/yr | 6% | Clothing exempt; manufacturing machinery exempt; strong tech sector |
| Virginia | 2%–5.75% | $50/yr | 5.3% | Food taxed at 1%; data center and manufacturing exemptions strong |
| West Virginia | 3%–6.5% | $25/yr | 6% | Coal/energy economy; food exempt from sales tax |
| Wisconsin | 3.5%–7.65% | $25/yr | 5% | Manufacturing/agriculture credit significant; food exempt |
* Rates as of 2025–2026. Income tax, LLC fees, and sales tax rates are approximate and subject to annual legislative changes. Combined local + state sales tax may be higher. Source: state Departments of Revenue, Tax Foundation, IRS. Always consult a CPA before making formation or compliance decisions.
Sales Tax Rates & Exempt Categories⤤ LINK
Grocery & Food
Most states exempt unprepared food. Alaska, Delaware, Montana, New Hampshire, Oregon have no sales tax. States like Tennessee and Kansas tax groceries at reduced rates.
Prescription Drugs
Prescription drugs are exempt from sales tax in all 50 states. Over-the-counter medications vary — most states tax OTC medicines unless specifically exempt.
Clothing & Apparel
Several states exempt clothing below a threshold. Pennsylvania, New Jersey, Minnesota (below $100), and New York exempt most clothing. Vermont exempts clothing under $110 per item.
Manufacturing Equipment
Most states offer full or partial exemptions for machinery and equipment used directly in manufacturing. Requirements vary but generally apply to equipment that processes or transforms goods.
Nonprofit Organizations
501(c)(3) nonprofits are exempt from sales tax on purchases used for their exempt purpose in most states. Sales made by nonprofits may also be exempt if proceeds benefit their mission.
Resale / Wholesale
Businesses purchasing goods for resale are exempt from sales tax when they provide a valid resale certificate to the seller. Misuse of resale certificates carries significant penalties.
State sales tax rates shown are state-level only. Most states allow counties and municipalities to impose additional local sales taxes. Combined state + local rates can significantly exceed state rates — for example, Tennessee's combined average is 9.548% and Louisiana's is 9.547%. Always verify the combined rate for the specific jurisdiction where sales occur. SK Financial can assist with multi-state sales tax analysis, nexus determination, and compliance registration.
Book a Free Sales Tax Consultation →