At an overall tax rate of 54.6%, Microsoft Corp. ranks No. 7 on a list of companies that pay the highest taxes.
Personal finance website WalletHub analyzed annual reports for the S&P 100 to determine federal, state and international tax rates for 2018. WalletHub notes that the S&P 100 Index consists of the largest and most established companies in the nation.
Among Seattle-area companies, Amazon Inc.’s overall tax rate is 10.63%. Costco Wholesale Corp. pays 28.43% and Starbucks Corp. pays 21.83%.
S&P companies pay on average an overall tax rate of about 21%, more than 15% lower than in 2017. In December 2017, President Donald Trump signed legislation that lowered the federal corporate income tax rate from 35% to 21%.
Telecom giant Qualcomm Inc. has the highest tax rate, 1,048.1%, followed by CVS Health Corp. and Cisco Systems Inc. At -36.7%, PepsiCo Inc. pays the lowest taxes. Four other companies have a negative overall tax rate.
The report also notes that the average S&P company pays a 35% lower tax rate than the top 1% of consumers.