State Taxation Of Insurance
Updated: 04 December 2024
What Does State Taxation Of Insurance Mean?
Insurance companies in nearly every state are subject to taxation by their state government. The primary tax imposed on insurance companies is called a “premium tax.” This tax is based on the amount of premiums an insurance company collects in a given year.
Insuranceopedia Explains State Taxation Of Insurance
Oregon is the only state that does not impose a premium tax on insurance companies. Washington, D.C. also does not participate in this practice. Additionally, states commonly tax insurance companies through a “retaliatory tax.”
The taxes collected from insurance companies often make up a significant portion of a state’s revenue, totaling hundreds of millions or even billions of dollars in a single tax period.
