State Taxation of Insurance

Published: | Updated: January 6, 2018;

Definition - What does State Taxation of Insurance mean?

Insurance companies in almost every single state are taxed by their state government. State governments tax insurance companies primarily through a tax called a "premium tax." This is a tax imposed on an insurance company based on the amount of premiums that it collects in a year.

Insuranceopedia explains State Taxation of Insurance

Oregon is the only state that does not tax insurance companies through a premium tax. Washington DC also doesn't participate in the practice. States also commonly tax insurance companies through a "retaliatory tax."

Taxes collected from insurance companies often makes up a significant portion of a state's taxation revenue, totally as much as hundreds of millions or even billions in a single tax period.

Share this:

Connect with us

Email Newsletter

Join thousands receiving the latest content and insights on the insurance industry.