Original research · IRS SOI partnerships (Form 1065) · Tax Year 2023 · Published September 16, 2026 · Companion to sole-prop net profit by state
Form 1065 ordinary-income averages from IRS SOI — not a partnership tax tutorial. This page maps IRS Statistics of Income (SOI) state × 3-digit industry averages of partnership ordinary business income (Form 1065) for tax year 2023 — a different map than Schedule C net profit. Across admin/support, specialty trades, social assistance, and personal/laundry services, high-receipt states frequently miss the top tier for average ordinary income — and miss the top tier for margin even more often. For specialty trade contractors, 0 of 10 high-receipt states also rank in the top 10 for ordinary-income margin (Spearman ≈ −0.47). Only 1–3 of 10 top sole-prop average-net states also land in the partnership top 10. Not tax advice and not a Form 1065 how-to — not Schedule C profit, NES receipts, QCEW pay, or a “best state” score.
We use IRS Statistics of Income unincorporated business state tables — Table 2 partnerships — for Tax Year 2023 (workbook confirmed current as of September 16, 2026). Metrics: average ordinary business income (Form 1065 line 22 ÷ number of Forms 1065) and margin (ordinary income ÷ business receipts). The finest published state×industry grain is 3-digit NAICS. Related research: sole prop net profit by state, nonemployer share by state, and employer pay by state.
Key findings
- U.S. average ordinary income ladder (TY2023): specialty trade $140,750 → admin & support $132,551 → social assistance $66,992 → personal & laundry $26,164. Partnership margins cluster around 5–8% — far below Schedule C margins for the same codes (15.1%–33.0%).
- Hypothesis supported — high receipts ≠ high partnership margin. Among the 10 states with the highest average receipts, specialty trade keeps 0/10 in the top-10 margin list (Spearman receipts↔margin -0.47). Admin & support keeps just 1/10 on margin.
- High sole-prop states are not reliably high partnership states. Top-10 average-net sole-prop states overlap the partnership top-10 average-ordinary list in only 3/10 (specialty trade), 3/10 (admin & support), and 1/10 (personal & laundry). Different legal/tax universes.
- State spreads are large; some averages are negative. Specialty trade average ordinary runs from $-152,300 (District of Columbia) to $324,845 (Nevada). Negative cell averages are real published totals — not suppressions.
- Codes are coarse; social assistance has many suppressions.
561/238/624/812cannot isolate cleaning, HVAC, daycare, or salons. Social assistance has 17 suppressed states (ranked on 34 published cells only). Suppressions (d) are never treated as zero.
U.S. baselines and state ranges
| Industry | NAICS | Forms 1065 | U.S. avg ordinary | PA margin | Sole-prop margin | Avg-ordinary spread | Margin spread | Suppressed states | Highest avg | Lowest avg |
|---|---|---|---|---|---|---|---|---|---|---|
| Specialty Trade Contractors | 238 | 88,654 | $140,750 | 7.0% | 15.1% | $477,146 | 37.0 pp | 0 | Nevada ($324,845) | District of Columbia ($-152,300) |
| Administrative and Support Services | 561 | 74,091 | $132,551 | 7.8% | 22.3% | $451,444 | 28.7 pp | 2 | New Jersey ($436,405) | South Carolina ($-15,039) |
| Social Assistance | 624 | 10,519 | $66,992 | 7.6% | 33.0% | $136,354 | 16.4 pp | 17 | Indiana ($142,439) | North Dakota ($6,085) |
| Personal and Laundry Services | 812 | 92,354 | $26,164 | 5.4% | 24.9% | $107,765 | 18.8 pp | 0 | District of Columbia ($104,811) | Arkansas ($-2,953) |
Not a ranking of “best states.” Higher average ordinary income can reflect mix, scale, costs, or filing patterns — not a recommendation to relocate. Partnership ordinary income ≠ Schedule C net profit.
Receipts ≠ ordinary income (and ≠ margin)
Average receipts and average ordinary income move together more than receipts and margin do. A state can look “busy” on partnership receipts while keeping less of each dollar as ordinary business income.
How this differs from the sole-prop companion
- Different forms: Schedule C line 31 net profit vs Form 1065 line 22 ordinary business income.
- Different filers: Nonfarm sole proprietorships vs partnerships (including many LLCs taxed as partnerships — not LLCs taxed as C/S corps).
- Different scale: Partnership averages are typically much larger dollars per return than Schedule C averages, with thinner margins.
- Different state ranks: See the table’s sole-prop columns and the overlap chart — high Schedule C margin states often fail to lead partnership rankings.
Read the companion study: Where Sole Props Keep More of What They Take In.
Charts
State × industry table
Filter by industry or search a state. State names link to the closest StartBusinessByState industry guide for that rollup. Sole-prop columns are from the companion Schedule C study for the same 3-digit code — labeled for comparison only. Download the full CSV: partnership-profit-by-state-2023.csv.
| State | Industry | Forms 1065 | Avg receipts | Avg ordinary | Avg rank | PA margin | Margin rank | Sole-prop avg net | Sole-prop margin |
|---|---|---|---|---|---|---|---|---|---|
| New Jersey | Admin & support | 3,580 | $1,612,378 | $436,405 | 1 | 27.1% | 1 | $11,863 | 21.5% |
| Indiana | Admin & support | 972 | $2,083,474 | $405,075 | 2 | 19.4% | 3 | $7,857 | 25.4% |
| Massachusetts | Admin & support | 970 | $2,909,316 | $324,015 | 3 | 11.1% | 12 | $13,713 | 31.1% |
| Nebraska | Admin & support | 385 | $3,416,443 | $275,470 | 4 | 8.1% | 23 | $8,993 | 23.1% |
| Tennessee | Admin & support | 1,925 | $2,394,041 | $270,732 | 5 | 11.3% | 9 | $9,478 | 17.8% |
| Connecticut | Admin & support | 1,115 | $1,312,444 | $261,563 | 6 | 19.9% | 2 | $15,010 | 25.2% |
| Ohio | Admin & support | 1,917 | $2,420,710 | $243,246 | 7 | 10.0% | 15 | $8,927 | 22.6% |
| New York | Admin & support | 4,074 | $3,207,767 | $202,608 | 8 | 6.3% | 28 | $11,142 | 32.5% |
| Delaware | Admin & support | 432 | $2,219,881 | $197,819 | 9 | 8.9% | 19 | $9,614 | 21.6% |
| Texas | Admin & support | 7,580 | $1,804,142 | $179,404 | 10 | 9.9% | 16 | $4,600 | 14.7% |
| Iowa | Admin & support | 488 | $960,721 | $152,601 | 11 | 15.9% | 4 | $8,351 | 24.7% |
| Illinois | Admin & support | 1,800 | $3,444,438 | $152,187 | 12 | 4.4% | 36 | $7,201 | 25.9% |
| Wisconsin | Admin & support | 925 | $1,314,431 | $149,997 | 13 | 11.4% | 8 | $6,212 | 12.2% |
| Louisiana | Admin & support | 1,250 | $1,435,146 | $120,388 | 14 | 8.4% | 21 | $2,256 | 8.5% |
| Kentucky | Admin & support | 702 | $920,306 | $112,470 | 15 | 12.2% | 7 | $7,751 | 24.4% |
| North Dakota | Admin & support | 157 | $754,612 | $109,514 | 16 | 14.5% | 5 | $8,387 | 24.3% |
| Colorado | Admin & support | 1,356 | $1,261,816 | $97,492 | 17 | 7.7% | 25 | $12,036 | 30.4% |
| Michigan | Admin & support | 1,745 | $2,130,020 | $92,945 | 18 | 4.4% | 38 | $6,947 | 19.8% |
| New Hampshire | Admin & support | 352 | $2,080,042 | $90,843 | 19 | 4.4% | 37 | $18,829 | 23.7% |
| California | Admin & support | 5,383 | $1,863,622 | $87,751 | 20 | 4.7% | 34 | $11,938 | 31.0% |
| Washington | Admin & support | 1,205 | $1,067,871 | $85,872 | 21 | 8.0% | 24 | $14,749 | 31.4% |
| Rhode Island | Admin & support | 146 | $993,869 | $81,976 | 22 | 8.2% | 22 | $11,296 | 30.7% |
| Oregon | Admin & support | 852 | $802,561 | $81,745 | 23 | 10.2% | 14 | $13,679 | 31.8% |
| Mississippi | Admin & support | 479 | $594,866 | $81,077 | 24 | 13.6% | 6 | $1,594 | 6.5% |
| Georgia | Admin & support | 2,373 | $1,976,036 | $78,026 | 25 | 3.9% | 39 | $1,158 | 4.6% |
| Arizona | Admin & support | 1,812 | $2,451,664 | $76,501 | 26 | 3.1% | 42 | $10,869 | 26.2% |
| Nevada | Admin & support | 1,110 | $879,866 | $75,896 | 27 | 8.6% | 20 | $5,037 | 15.9% |
| Maryland | Admin & support | 1,397 | $1,200,565 | $75,132 | 28 | 6.3% | 29 | $6,374 | 19.0% |
| Alaska | Admin & support | 180 | $2,198,730 | $72,167 | 29 | 3.3% | 41 | $10,239 | 24.5% |
| Hawaii | Admin & support | 276 | $988,152 | $71,331 | 30 | 7.2% | 26 | $12,365 | 27.4% |
| Florida | Admin & support | 11,010 | $1,176,838 | $69,900 | 31 | 5.9% | 31 | $5,621 | 21.9% |
| Missouri | Admin & support | 1,159 | $1,203,123 | $68,374 | 32 | 5.7% | 32 | $7,951 | 20.2% |
| Utah | Admin & support | 1,575 | $1,751,659 | $67,409 | 33 | 3.8% | 40 | $6,905 | 20.7% |
| Pennsylvania | Admin & support | 2,301 | $2,304,610 | $65,565 | 34 | 2.8% | 44 | $11,623 | 23.4% |
| Kansas | Admin & support | 714 | $928,818 | $65,165 | 35 | 7.0% | 27 | $9,446 | 27.7% |
| Alabama | Admin & support | 959 | $1,020,875 | $63,653 | 36 | 6.2% | 30 | $3,405 | 11.8% |
| Oklahoma | Admin & support | 917 | $1,365,219 | $60,944 | 37 | 4.5% | 35 | $7,313 | 20.9% |
| New Mexico | Admin & support | 251 | $527,125 | $59,578 | 38 | 11.3% | 10 | $9,997 | 30.1% |
| North Carolina | Admin & support | 2,040 | $1,094,413 | $56,346 | 39 | 5.1% | 33 | $7,385 | 23.2% |
| Idaho | Admin & support | 641 | $518,141 | $50,848 | 40 | 9.8% | 18 | $9,526 | 27.7% |
| Wyoming | Admin & support | 332 | $491,820 | $48,868 | 41 | 9.9% | 17 | $9,856 | 29.0% |
| West Virginia | Admin & support | 205 | $430,233 | $47,994 | 42 | 11.2% | 11 | $8,290 | 22.3% |
| Minnesota | Admin & support | 960 | $1,575,691 | $47,824 | 43 | 3.0% | 43 | $11,221 | 27.8% |
| Virginia | Admin & support | 1,554 | $1,467,257 | $32,772 | 44 | 2.2% | 46 | $7,106 | 22.5% |
| Montana | Admin & support | 302 | $224,134 | $23,958 | 45 | 10.7% | 13 | $10,700 | 31.8% |
| Maine | Admin & support | 222 | $500,640 | $12,264 | 46 | 2.4% | 45 | $10,832 | 27.2% |
| South Dakota | Admin & support | 204 | $628,843 | $7,139 | 47 | 1.1% | 47 | $11,414 | 27.1% |
| Arkansas | Admin & support | 479 | $464,263 | $-4,585 | 48 | -1.0% | 48 | $5,898 | 22.9% |
| South Carolina | Admin & support | 1,055 | $913,403 | $-15,039 | 49 | -1.6% | 49 | $5,677 | 17.4% |
| District of Columbia | Personal & laundry | 167 | $665,031 | $104,811 | 1 | 15.8% | 4 | $7,203 | 30.6% |
| Kentucky | Personal & laundry | 960 | $556,308 | $97,083 | 2 | 17.5% | 3 | $9,229 | 30.9% |
| Massachusetts | Personal & laundry | 1,496 | $987,445 | $81,649 | 3 | 8.3% | 16 | $12,480 | 32.4% |
| North Dakota | Personal & laundry | 206 | $1,214,938 | $71,138 | 4 | 5.9% | 30 | $10,597 | 29.8% |
| Illinois | Personal & laundry | 2,438 | $889,318 | $71,058 | 5 | 8.0% | 17 | $6,240 | 25.5% |
| Delaware | Personal & laundry | 315 | $1,175,784 | $67,905 | 6 | 5.8% | 31 | $6,793 | 20.5% |
| Minnesota | Personal & laundry | 1,130 | $557,286 | $64,047 | 7 | 11.5% | 7 | $10,964 | 30.2% |
| Tennessee | Personal & laundry | 2,105 | $656,097 | $56,804 | 8 | 8.7% | 14 | $7,889 | 21.1% |
| Louisiana | Personal & laundry | 1,274 | $556,289 | $56,556 | 9 | 10.2% | 10 | $3,481 | 14.8% |
| Montana | Personal & laundry | 433 | $293,232 | $51,722 | 10 | 17.6% | 1 | $10,440 | 33.1% |
| Maryland | Personal & laundry | 1,513 | $461,227 | $45,549 | 11 | 9.9% | 11 | $5,744 | 19.8% |
| Mississippi | Personal & laundry | 582 | $533,354 | $44,366 | 12 | 8.3% | 15 | $3,993 | 17.6% |
| Maine | Personal & laundry | 251 | $502,694 | $43,690 | 13 | 8.7% | 13 | $11,428 | 30.8% |
| Pennsylvania | Personal & laundry | 3,200 | $553,899 | $41,006 | 14 | 7.4% | 22 | $9,233 | 25.7% |
| Nevada | Personal & laundry | 1,124 | $503,918 | $39,023 | 15 | 7.7% | 19 | $8,352 | 26.7% |
| North Carolina | Personal & laundry | 2,377 | $326,128 | $38,084 | 16 | 11.7% | 6 | $8,346 | 28.3% |
| Nebraska | Personal & laundry | 537 | $499,609 | $34,939 | 17 | 7.0% | 24 | $10,879 | 33.0% |
| Washington | Personal & laundry | 1,213 | $438,676 | $33,356 | 18 | 7.6% | 20 | $12,655 | 32.3% |
| New Jersey | Personal & laundry | 5,691 | $444,032 | $33,075 | 19 | 7.4% | 21 | $8,929 | 21.9% |
| New York | Personal & laundry | 6,021 | $610,664 | $32,423 | 20 | 5.3% | 34 | $10,171 | 36.4% |
| Georgia | Personal & laundry | 2,844 | $459,771 | $32,174 | 21 | 7.0% | 23 | $2,326 | 10.4% |
| Connecticut | Personal & laundry | 1,465 | $1,173,537 | $30,049 | 22 | 2.6% | 43 | $12,984 | 28.7% |
| Wyoming | Personal & laundry | 308 | $167,770 | $29,513 | 23 | 17.6% | 2 | $9,725 | 32.3% |
| New Hampshire | Personal & laundry | 437 | $449,802 | $28,147 | 24 | 6.3% | 27 | $16,480 | 30.5% |
| Vermont | Personal & laundry | 127 | $181,483 | $27,654 | 25 | 15.2% | 5 | $12,268 | 33.8% |
| New Mexico | Personal & laundry | 330 | $245,837 | $26,893 | 26 | 10.9% | 8 | $9,491 | 28.6% |
| Ohio | Personal & laundry | 2,401 | $426,135 | $26,529 | 27 | 6.2% | 28 | $9,012 | 29.2% |
| Alaska | Personal & laundry | 129 | $273,914 | $26,169 | 28 | 9.6% | 12 | $13,211 | 32.4% |
| South Dakota | Personal & laundry | 268 | $367,961 | $23,396 | 29 | 6.4% | 25 | $11,410 | 32.6% |
| Utah | Personal & laundry | 2,202 | $490,997 | $23,068 | 30 | 4.7% | 37 | $6,832 | 25.4% |
| Hawaii | Personal & laundry | 349 | $213,473 | $22,477 | 31 | 10.5% | 9 | $11,201 | 30.0% |
| Indiana | Personal & laundry | 1,186 | $822,863 | $21,952 | 32 | 2.7% | 42 | $9,364 | 32.1% |
| Virginia | Personal & laundry | 1,802 | $575,844 | $21,502 | 33 | 3.7% | 40 | $7,473 | 25.7% |
| California | Personal & laundry | 9,273 | $373,570 | $20,410 | 34 | 5.5% | 32 | $9,265 | 27.1% |
| Iowa | Personal & laundry | 720 | $309,292 | $18,980 | 35 | 6.1% | 29 | $9,229 | 28.2% |
| Wisconsin | Personal & laundry | 1,013 | $234,859 | $18,665 | 36 | 7.9% | 18 | $11,304 | 32.0% |
| South Carolina | Personal & laundry | 1,270 | $350,952 | $17,078 | 37 | 4.9% | 36 | $6,872 | 23.4% |
| Missouri | Personal & laundry | 1,447 | $319,536 | $16,859 | 38 | 5.3% | 35 | $8,485 | 26.5% |
| Arizona | Personal & laundry | 2,196 | $393,472 | $15,943 | 39 | 4.1% | 39 | $9,565 | 26.6% |
| Colorado | Personal & laundry | 1,855 | $416,299 | $14,715 | 40 | 3.5% | 41 | $9,947 | 31.3% |
| Rhode Island | Personal & laundry | 270 | $211,011 | $11,388 | 41 | 5.4% | 33 | $11,723 | 34.8% |
| West Virginia | Personal & laundry | 323 | $178,394 | $11,340 | 42 | 6.4% | 26 | $9,615 | 28.8% |
| Oklahoma | Personal & laundry | 1,185 | $267,051 | $11,189 | 43 | 4.2% | 38 | $7,665 | 24.8% |
| Oregon | Personal & laundry | 952 | $567,165 | $11,136 | 44 | 2.0% | 45 | $12,180 | 34.6% |
| Alabama | Personal & laundry | 1,142 | $431,264 | $9,721 | 45 | 2.3% | 44 | $5,012 | 19.3% |
| Michigan | Personal & laundry | 2,249 | $371,304 | $6,381 | 46 | 1.7% | 46 | $7,604 | 29.0% |
| Texas | Personal & laundry | 8,587 | $578,997 | $6,340 | 47 | 1.1% | 49 | $4,871 | 16.1% |
| Florida | Personal & laundry | 10,714 | $373,247 | $6,330 | 48 | 1.7% | 47 | $4,595 | 18.5% |
| Kansas | Personal & laundry | 728 | $372,196 | $4,098 | 49 | 1.1% | 48 | $10,125 | 30.7% |
| Idaho | Personal & laundry | 819 | $312,842 | $-1,884 | 50 | -0.6% | 50 | $7,763 | 25.9% |
| Arkansas | Personal & laundry | 730 | $243,856 | $-2,953 | 51 | -1.2% | 51 | $6,864 | 24.9% |
| Indiana | Social assistance | 138 | $1,848,277 | $142,439 | 1 | 7.7% | 19 | $11,312 | 34.2% |
| Vermont | Social assistance | 18 | $829,217 | $136,014 | 2 | 16.4% | 2 | $19,785 | 40.9% |
| Tennessee | Social assistance | 221 | $910,824 | $122,772 | 3 | 13.5% | 5 | $10,513 | 28.1% |
| Kentucky | Social assistance | 106 | $1,130,020 | $116,497 | 4 | 10.3% | 12 | $10,880 | 33.1% |
| North Carolina | Social assistance | 281 | $839,396 | $106,896 | 5 | 12.7% | 6 | $8,765 | 32.0% |
| Oregon | Social assistance | 111 | $673,535 | $96,875 | 6 | 14.4% | 3 | $15,462 | 39.5% |
| Kansas | Social assistance | 90 | $460,473 | $79,360 | 7 | 17.2% | 1 | $12,840 | 37.7% |
| Louisiana | Social assistance | 155 | $487,135 | $69,086 | 8 | 14.2% | 4 | $5,549 | 23.7% |
| Utah | Social assistance | 315 | $1,008,252 | $68,993 | 9 | 6.8% | 23 | $8,251 | 28.5% |
| New Jersey | Social assistance | 726 | $965,682 | $68,580 | 10 | 7.1% | 21 | $13,412 | 37.6% |
| Texas | Social assistance | 1,105 | $782,507 | $68,049 | 11 | 8.7% | 15 | $5,732 | 21.9% |
| New York | Social assistance | 706 | $1,136,658 | $67,233 | 12 | 5.9% | 27 | $14,248 | 40.4% |
| New Hampshire | Social assistance | 49 | $531,030 | $64,314 | 13 | 12.1% | 8 | $13,646 | 20.4% |
| Alabama | Social assistance | 116 | $692,816 | $62,096 | 14 | 9.0% | 13 | $8,186 | 26.8% |
| Oklahoma | Social assistance | 120 | $537,381 | $59,220 | 15 | 11.0% | 10 | $11,563 | 29.9% |
| Ohio | Social assistance | 307 | $677,597 | $58,747 | 16 | 8.7% | 16 | $9,923 | 32.9% |
| Delaware | Social assistance | 39 | $458,046 | $55,611 | 17 | 12.1% | 7 | $11,561 | 27.8% |
| Hawaii | Social assistance | 20 | $509,546 | $55,427 | 18 | 10.9% | 11 | $11,461 | 31.8% |
| Pennsylvania | Social assistance | 404 | $743,234 | $47,562 | 19 | 6.4% | 24 | $12,440 | 34.1% |
| District of Columbia | Social assistance | 19 | $1,020,658 | $44,620 | 20 | 4.4% | 30 | $9,414 | 36.0% |
| Nebraska | Social assistance | 81 | $482,982 | $42,359 | 21 | 8.8% | 14 | $10,280 | 34.4% |
| California | Social assistance | 1,118 | $591,370 | $41,968 | 22 | 7.1% | 22 | $11,430 | 34.1% |
| Connecticut | Social assistance | 175 | $514,348 | $40,935 | 23 | 8.0% | 18 | $15,527 | 41.7% |
| South Carolina | Social assistance | 99 | $639,634 | $39,581 | 24 | 6.2% | 26 | $7,536 | 30.4% |
| West Virginia | Social assistance | 32 | $618,732 | $35,282 | 25 | 5.7% | 28 | $12,683 | 32.1% |
| Rhode Island | Social assistance | 23 | $453,345 | $34,404 | 26 | 7.6% | 20 | $13,308 | 48.8% |
| Maine | Social assistance | 59 | $294,683 | $32,548 | 27 | 11.0% | 9 | $13,280 | 30.2% |
| Florida | Social assistance | 756 | $939,074 | $25,605 | 28 | 2.7% | 31 | $6,601 | 29.8% |
| Wyoming | Social assistance | 31 | $288,423 | $24,684 | 29 | 8.6% | 17 | $11,701 | 26.3% |
| Montana | Social assistance | 51 | $369,358 | $21,017 | 30 | 5.7% | 29 | $13,781 | 31.3% |
| South Dakota | Social assistance | 35 | $269,034 | $17,021 | 31 | 6.3% | 25 | $13,801 | 37.2% |
| Idaho | Social assistance | 110 | $749,373 | $13,429 | 32 | 1.8% | 33 | $10,188 | 26.3% |
| Georgia | Social assistance | 271 | $1,096,075 | $8,638 | 33 | 0.8% | 34 | $4,029 | 20.7% |
| North Dakota | Social assistance | 39 | $324,085 | $6,085 | 34 | 1.9% | 32 | $13,945 | 34.3% |
| Nevada | Specialty trade | 680 | $3,904,573 | $324,845 | 1 | 8.3% | 22 | $11,323 | 9.5% |
| Alabama | Specialty trade | 1,216 | $1,848,016 | $271,395 | 2 | 14.7% | 3 | $14,982 | 11.2% |
| Texas | Specialty trade | 8,924 | $3,557,330 | $242,846 | 3 | 6.8% | 32 | $13,818 | 10.8% |
| Hawaii | Specialty trade | 205 | $2,487,002 | $241,474 | 4 | 9.7% | 14 | $25,108 | 18.5% |
| Rhode Island | Specialty trade | 165 | $4,834,894 | $224,336 | 5 | 4.6% | 47 | $21,034 | 22.5% |
| Arizona | Specialty trade | 2,272 | $2,159,153 | $211,336 | 6 | 9.8% | 12 | $16,397 | 13.8% |
| Maine | Specialty trade | 305 | $742,621 | $205,639 | 7 | 27.7% | 1 | $19,786 | 17.9% |
| Minnesota | Specialty trade | 1,602 | $2,113,216 | $202,723 | 8 | 9.6% | 16 | $23,272 | 19.2% |
| Massachusetts | Specialty trade | 1,209 | $2,469,033 | $202,339 | 9 | 8.2% | 23 | $25,096 | 22.3% |
| Tennessee | Specialty trade | 3,129 | $1,978,504 | $191,248 | 10 | 9.7% | 15 | $27,641 | 13.8% |
| Washington | Specialty trade | 1,877 | $3,038,296 | $185,495 | 11 | 6.1% | 41 | $25,461 | 19.1% |
| Maryland | Specialty trade | 1,590 | $2,285,038 | $185,139 | 12 | 8.1% | 24 | $14,929 | 15.8% |
| New Hampshire | Specialty trade | 683 | $1,942,299 | $173,474 | 13 | 8.9% | 21 | $35,192 | 18.2% |
| California | Specialty trade | 3,107 | $2,526,954 | $170,634 | 14 | 6.8% | 33 | $20,090 | 18.2% |
| Indiana | Specialty trade | 1,439 | $1,646,084 | $154,685 | 15 | 9.4% | 19 | $19,630 | 16.4% |
| Mississippi | Specialty trade | 646 | $1,389,055 | $153,518 | 16 | 11.1% | 7 | $11,319 | 9.7% |
| Georgia | Specialty trade | 2,953 | $2,345,993 | $151,455 | 17 | 6.5% | 35 | $7,638 | 7.9% |
| Ohio | Specialty trade | 2,960 | $1,878,080 | $148,122 | 18 | 7.9% | 25 | $22,675 | 17.5% |
| Colorado | Specialty trade | 2,037 | $1,998,079 | $143,905 | 19 | 7.2% | 30 | $21,825 | 19.5% |
| Illinois | Specialty trade | 1,808 | $4,038,935 | $143,810 | 20 | 3.6% | 49 | $15,240 | 18.9% |
| Connecticut | Specialty trade | 1,930 | $1,350,021 | $143,675 | 21 | 10.6% | 8 | $29,516 | 17.2% |
| New York | Specialty trade | 4,019 | $2,532,539 | $131,699 | 22 | 5.2% | 46 | $16,400 | 17.7% |
| Vermont | Specialty trade | 166 | $593,037 | $125,967 | 23 | 21.2% | 2 | $21,270 | 19.1% |
| Louisiana | Specialty trade | 1,449 | $1,953,100 | $124,163 | 24 | 6.4% | 38 | $6,924 | 7.3% |
| Pennsylvania | Specialty trade | 3,219 | $2,157,746 | $122,553 | 25 | 5.7% | 44 | $23,449 | 18.2% |
| New Mexico | Specialty trade | 416 | $1,877,788 | $119,258 | 26 | 6.4% | 39 | $15,641 | 12.8% |
| North Dakota | Specialty trade | 322 | $1,104,926 | $117,212 | 27 | 10.6% | 9 | $24,848 | 16.1% |
| New Jersey | Specialty trade | 4,463 | $1,630,145 | $115,654 | 28 | 7.1% | 31 | $25,836 | 15.7% |
| Utah | Specialty trade | 2,476 | $1,876,680 | $114,440 | 29 | 6.1% | 42 | $13,257 | 12.4% |
| Michigan | Specialty trade | 1,729 | $1,537,974 | $113,463 | 30 | 7.4% | 28 | $18,773 | 18.3% |
| Iowa | Specialty trade | 926 | $1,241,902 | $112,523 | 31 | 9.1% | 20 | $19,053 | 14.3% |
| North Carolina | Specialty trade | 2,814 | $1,704,694 | $110,122 | 32 | 6.5% | 34 | $17,671 | 16.0% |
| Kansas | Specialty trade | 980 | $1,706,773 | $108,198 | 33 | 6.3% | 40 | $20,829 | 15.3% |
| South Dakota | Specialty trade | 416 | $956,720 | $94,218 | 34 | 9.8% | 11 | $23,480 | 17.3% |
| Delaware | Specialty trade | 375 | $972,565 | $91,746 | 35 | 9.4% | 18 | $24,028 | 16.1% |
| Wisconsin | Specialty trade | 1,394 | $872,866 | $85,306 | 36 | 9.8% | 13 | $24,120 | 17.6% |
| Florida | Specialty trade | 8,876 | $1,427,528 | $84,533 | 37 | 5.9% | 43 | $10,288 | 16.0% |
| Oklahoma | Specialty trade | 1,426 | $1,278,507 | $81,452 | 38 | 6.4% | 37 | $14,917 | 12.5% |
| Alaska | Specialty trade | 206 | $608,087 | $80,391 | 39 | 13.2% | 4 | $26,298 | 17.4% |
| Idaho | Specialty trade | 1,565 | $679,934 | $78,418 | 40 | 11.5% | 6 | $18,187 | 15.4% |
| Nebraska | Specialty trade | 698 | $1,187,156 | $76,446 | 41 | 6.4% | 36 | $18,291 | 15.7% |
| South Carolina | Specialty trade | 1,344 | $999,473 | $74,828 | 42 | 7.5% | 27 | $15,308 | 12.4% |
| West Virginia | Specialty trade | 383 | $947,438 | $74,520 | 43 | 7.9% | 26 | $15,208 | 11.8% |
| Oregon | Specialty trade | 1,464 | $699,999 | $74,160 | 44 | 10.6% | 10 | $24,297 | 18.1% |
| Missouri | Specialty trade | 1,772 | $1,303,301 | $72,921 | 45 | 5.6% | 45 | $17,849 | 13.7% |
| Kentucky | Specialty trade | 1,181 | $966,743 | $69,884 | 46 | 7.2% | 29 | $17,442 | 15.1% |
| Virginia | Specialty trade | 1,948 | $1,823,541 | $58,739 | 47 | 3.2% | 50 | $14,637 | 15.7% |
| Montana | Specialty trade | 678 | $469,822 | $55,742 | 48 | 11.9% | 5 | $22,399 | 19.9% |
| Arkansas | Specialty trade | 814 | $1,137,171 | $51,736 | 49 | 4.5% | 48 | $15,669 | 14.0% |
| Wyoming | Specialty trade | 353 | $521,370 | $49,371 | 50 | 9.5% | 17 | $18,827 | 15.7% |
| District of Columbia | Specialty trade | 45 | $1,639,566 | $-152,300 | 51 | -9.3% | 51 | $9,308 | 9.8% |
FAQ
What is ordinary income on Form 1065?
In IRS SOI partnership statistics, ordinary business income is the Form 1065 ordinary-income concept published in Table 2 — not the same as Schedule C net profit. This page reports TY2023 state × industry averages of that figure. It is not a line-by-line Form 1065 tutorial and not tax advice.
Which of these industries has the highest U.S. average partnership ordinary income?
Among the four service rollups on this page, specialty trade contractors (NAICS 238) lead U.S. average ordinary income at $140,750 (7.0% PA margin), then admin & support $132,551 (7.8%), social assistance $66,992 (7.6%), and personal & laundry $26,164 (5.4%). Partnership margins (~5–8%) sit far below same-code Schedule C margins.
Do high-receipt states also post high partnership ordinary-income margins?
Often no. For specialty trades, 0 of 10 top-receipt states also rank in the top 10 for ordinary-income margin (Spearman receipts↔margin ≈ −0.47). Admin & support shows only 1/10 overlap with top margins.
Is this advice on how partners split or report profits?
No. This is an IRS SOI averages map by state and industry — not tax advice, not a fair-percentage guide, and not a Form 1065 filing walkthrough.
Planning context — guides and insurance
Use these figures alongside startup guides and coverage decisions — not instead of them:
- Industry hubs: cleaning, landscaping, HVAC, daycare, hair salon
- Related research: sole prop net profit by state, nonemployer share by state, employer pay by state, small business ownership by state, unemployment vs service hiring
- Insurance (when you are ready for coverage): cleaning business insurance, HVAC insurance, daycare insurance
Methods, codes, and limits
Data source and calculations
Primary file: IRS SOI 23pa02st.xlsx — Table 2, Partnerships by industry and state, Tax Year 2023 (confirmed latest download September 16, 2026). Average ordinary income = ordinary business income (loss) (Form 1065 line 22) ÷ number of Forms 1065. Margin = ordinary income ÷ business receipts (line 1c). Suppressions (d) are never treated as zero.
NAICS mapping (coarse by design)
561 Administrative and Support Services — cleaning and landscaping audiences share this code with other admin/support activities.
238 Specialty Trade Contractors — HVAC/plumbing audiences share this code with other specialty trades.
624 Social Assistance — daycare audiences share this code with other social assistance; 17 states suppressed in TY2023.
812 Personal and Laundry Services — salon/personal-care audiences share this code with laundry and related services.
Limitations
- Partnerships filing Form 1065 — includes many LLCs taxed as partnerships; excludes LLCs taxed as C/S corporations.
- Ordinary business income ≠ Schedule C net profit and ≠ partner take-home after taxes or living costs.
- Filing ZIP may differ from where work is performed.
- Arithmetic means of Form 1065 ordinary income, not medians or per-partner income.
- Industry mix inside each 3-digit code varies by state.
Public references & download
IRS SOI unincorporated business state and county data · CSV: partnership-profit-by-state-2023.csv · Companion: sole-prop profit by state. Archived source checksums retained with this study.