FAQs - Commercial Activity Tax (CAT)

What are the tax rates for the CAT?

For calendar years 2006 and thereafter, the first $1 million in taxable gross receipts are taxed at $150. Receipts above $1 million are taxed at the following rates:

 

Tax Period

 

Base Tax Rate

Phase-in

Percentage

Effective Rate*

July 1, 2005 to December 31, 2005

0.06%  

N/A

0.0600%

January 1, 2006 to March 31, 2006

0.26%

23%

0.0598%

April 1, 2006 to March 31, 2007  

0.26%

40%

0.1040%

April 1, 2007 to March 31, 2008  

0.26%

60%

0.1560%

April 1, 2008 to March 31, 2009  

0.26%

80%

0.2080%

After March 31, 2009  

0.26%

100%

0.2600%