Click to EnlargePass-Through Businesses Can Face Marginal Tax Rates Over 50 Percent In Some States – 2014
Combined Federal, State and Local Top Marginal Income Tax Rate on Sole Proprietorships and Partnerships, 2014
Note: Marginal tax rates include federal, state and local income taxes, payroll taxes, the deduction for state and local income taxes, and the effect of the Pease limitation on itemized deductions. Published Jan 20, 2015.
Sole proprietorships, S corporations, limited liability companies (LLCs), and partnerships are also known as pass-through businesses. These entities are called pass-throughs, because the profits of these firms are passed directly through the business to the owners and are taxed on the owners’ individual income tax returns.