What is the current US federal corporate tax rate?

Since January 1, 2018, the Tax Cuts and Jobs Act (TCJA) established a flat 21% federal corporate income tax rate for C corporations. This replaced the prior graduated rate schedule that topped out at 35%.

Does this calculator include state corporate taxes?

No. This tool covers only the federal corporate income tax. State rates vary widely — from 0% (e.g., Nevada, South Dakota) to over 9% (e.g., New Jersey, Minnesota). Add your state rate separately for a complete picture.

What is taxable income for a corporation?

Taxable income is gross revenue minus allowable deductions (cost of goods sold, salaries, depreciation, interest on debt, etc.) as reported on IRS Form 1120. It is not the same as net income reported under GAAP.

What counts as a federal corporate tax credit?

Common non-refundable credits include the R&D Credit (Section 41), the Foreign Tax Credit, the Work Opportunity Tax Credit (WOTC), and various energy credits. Credits reduce tax dollar-for-dollar; this calculator applies them after computing the 21% gross tax.

Does the TCJA 21% rate expire?

The individual provisions of the TCJA are set to sunset after 2025, but the corporate rate is permanent under current law and does not expire unless Congress acts.

What is the Corporate Alternative Minimum Tax (CAMT)?

The Inflation Reduction Act of 2022 introduced a 15% Corporate Alternative Minimum Tax on the adjusted financial statement income of corporations with average annual income exceeding $1 billion. This calculator focuses on the regular 21% tax and does not compute CAMT.

USA Corporate Tax Calculator

Name: USA Corporate Tax Calculator
Availability: InStock
Author: Nham Vu

Enter taxable income to instantly calculate US federal corporate income tax at the flat 21% TCJA rate with a full liability breakdown.

Tax Inputs

Taxable Income

Gross revenue minus all allowable deductions (IRS Form 1120 line 30).

Non-Refundable Tax Credits (optional)

R&D credit, foreign tax credit, WOTC, energy credits, etc. Cannot exceed gross tax.

Flat 21% federal rate — set by the Tax Cuts and Jobs Act (TCJA), effective Jan 1, 2018. Applies to all C corporations. State taxes are not included.

Enter taxable income to see your federal corporate tax breakdown.

Federal Tax Liability

after credits

Gross Tax (21%)

Credits Applied

After-Tax Income

Item	Amount	% of Income
Taxable Income	—	100.00%
Gross Federal Tax (21% flat)	—	—
Non-Refundable Credits	—	—
Net Tax Owed	—	—
After-Tax Income	—	—

Effective Federal Tax Rate 0.00%

0% 21% statutory 100%

Done!

Summary

Enter taxable income to instantly calculate US federal corporate income tax at the flat 21% TCJA rate with a full liability breakdown.

How it works

Enter your corporation's taxable income in the Taxable Income field.
Optionally enter any non-refundable tax credits to offset the liability.
Click Calculate to see your federal corporate tax liability.
Review the tax breakdown: gross tax, credits applied, net tax owed, and after-tax income.
Use the effective rate card to compare your blended rate against the 21% statutory rate.
Click Reset to clear all fields and start over.

Use cases

Estimating quarterly federal tax payments for a C corporation.
Modeling after-tax profit for a business plan or investor pitch.
Comparing pre- and post-credit tax liability for financial planning.
Understanding the impact of deductions on net taxable income.
Teaching corporate tax concepts using a live, interactive example.
Quick sanity-check before filing IRS Form 1120.

Frequently Asked Questions

Last updated: 2026-06-25 · Reviewed by Nham Vu