The vast majority of states impose some form of a corporate income tax (CIT) to raise revenue from business entities. Although CITs can be complex, most businesses are familiar with how they work since most state CITs are based largely on the federal income tax code. However, not all states impose CITs. In fact, Texas, Ohio and Washington, three of the largest states, currently impose a gross receipts tax (GRT) instead of a CIT. Given the differences between GRTs and CITs, it should come as no surprise that multistate businesses, especially those based outside of those three states, are often confused as to how GRTs work. Herein we provide a general overview of GRTs, a brief description of the taxing schemes in Texas, Ohio and Washington, and some key distinctions that multistate taxpayers should be aware of concerning GRTs.