Corporate Tax Calculator
Calculate US federal and state corporate income tax. Federal flat rate is 21%; add your state's rate for the combined burden.
$
Quick:
$137,500
Total Tax
$105,000
Federal Tax (21%)
$32,500
State Tax
27.5%
Combined Effective Rate
Tax Breakdown
| Tax | Rate | Amount |
|---|---|---|
| Federal Corporate Tax | 21% | $105,000 |
| State Corporate Tax | 6.5% | $32,500 |
| Total Tax | 27.5% | $137,500 |
| Taxable Income | $500,000 |
| After-Tax Income | $362,500 |
How US Corporate Tax Works
C corporations pay a flat 21% federal corporate income tax on all taxable income. Most states impose an additional corporate income tax, creating a combined rate that varies by location.
Formula
Federal Tax = Taxable Income Γ 21%
State Tax = Taxable Income Γ State Rate
Total Tax = Federal Tax + State Tax
After-Tax Income = Taxable Income - Total Tax
State Tax = Taxable Income Γ State Rate
Total Tax = Federal Tax + State Tax
After-Tax Income = Taxable Income - Total Tax
Example
$1,000,000 taxable income in New York (6.5% state):
Federal = $1,000,000 Γ 21% = $210,000
State = $1,000,000 Γ 6.5% = $65,000
Total Tax = $275,000 (27.5% combined)
After-Tax = $725,000
Federal = $1,000,000 Γ 21% = $210,000
State = $1,000,000 Γ 6.5% = $65,000
Total Tax = $275,000 (27.5% combined)
After-Tax = $725,000
Extended
State Corporate Tax Rate Comparison
Compare combined federal + state corporate tax rates across all states
Combined Corporate Tax Rate by State
Federal 21% + state rate, sorted by highest combined rate.
| State | State Rate | Combined Rate | On $1M Income |
|---|---|---|---|
| New Jersey | 9.00% | 30.00% | $300,000 |
| Pennsylvania | 9.99% | 30.99% | $309,900 |
| Minnesota | 9.80% | 30.80% | $308,000 |
| Illinois | 9.50% | 30.50% | $305,000 |
| California | 8.84% | 29.84% | $298,400 |
| Massachusetts | 8.00% | 29.00% | $290,000 |
| New York | 6.50% | 27.50% | $275,000 |
| Florida | 5.50% | 26.50% | $265,000 |
| Georgia | 5.75% | 26.75% | $267,500 |
| North Carolina | 2.50% | 23.50% | $235,000 |
| Nevada | 0% | 21.00% | $210,000 |
| Texas | 0% | 21.00% | $210,000 |
| Wyoming | 0% | 21.00% | $210,000 |
Frequently Asked Questions
What is the federal corporate tax rate?
The federal corporate income tax rate is a flat 21% under the Tax Cuts and Jobs Act of 2017. This applies to all C corporations regardless of income level.
Do states also charge corporate income tax?
Yes. Most states levy their own corporate income tax on top of the federal rate. State rates range from 0% (Nevada, Texas, Wyoming) to 11.5% (New Jersey). The combined federal + state effective rate varies.
What is the corporate alternative minimum tax?
The Inflation Reduction Act of 2022 created a 15% corporate Alternative Minimum Tax (CAMT) for corporations with average annual adjusted financial statement income exceeding $1 billion.
What is taxable income for a corporation?
Corporate taxable income is gross revenues minus deductible business expenses, depreciation, interest, and other allowable deductions. Net operating losses from prior years can also reduce taxable income.
Is a 21% flat rate better than the old graduated rates?
It depends on income level. The old graduated rates (15%β35%) were more favorable for small C corps with under $75,000 in taxable income. The flat 21% rate benefits larger corporations significantly.