What is the US corporate tax rate in 2026?

C corporations pay a flat 21% federal tax on taxable income — there are no graduated brackets. The rate was made permanent. A 15% Corporate Alternative Minimum Tax can apply to corporations averaging over $1 billion of financial-statement income.

What is double taxation?

A C corporation pays 21% on its profits, and then shareholders pay tax again when those profits are distributed as dividends — at qualified dividend rates of 0%, 15% or 20% plus a possible 3.8% surtax. The same profit is effectively taxed twice.

How is taxable income calculated?

Start with gross income, subtract ordinary and necessary business deductions, and apply limitations such as the interest limit and the 80% net-operating-loss cap. The flat 21% then applies to the result.

United States · 2026 tax year

US Corporation Tax Calculator

Work out federal tax on a C corporation — the flat 21% rate on taxable income, and the double-taxation effect when after-tax profit is paid out to shareholders as dividends.

The corporation

Gross revenue

Cost of goods sold

Operating expenses Salaries, rent, marketing, depreciation

Other deductions

Taxable income$0

Distribute after-tax profit as dividends (show double taxation)

Shareholder filing status

Shareholder's other taxable income Sets the qualified-dividend rate (0 / 15 / 20%)

Corporation tax due

—

on — profit · — effective

Taxable income$0

Corporate tax at 21%$0

After-tax profit$0

Shareholder dividend tax$0

Net Investment Income Tax 3.8%$0

Profit left after both layers$0

Corporate tax (21%)

After-tax profit

Combined effective rate

21%

Total tax

Filing: Form 1120, due the 15th day of the 4th month after year-end (April 15 for calendar-year), with quarterly estimated payments. A 15% Corporate AMT can apply to corporations averaging $1B+ in financial-statement income.

How US corporate tax works

Since 2018 the federal corporate tax has been a single flat 21% on a C corporation's taxable income — gross income minus ordinary and necessary deductions. There are no brackets and no marginal relief, which makes the headline simple. The complexity in US corporate tax lives elsewhere: in what's deductible, in credits, and above all in how profits reach the owner.

Double taxation — the defining feature

A C corporation is a separate taxpayer, so its profit is taxed twice: once at 21% inside the company, and again when it's distributed as a dividend, taxed to the shareholder at qualified dividend rates (0%, 15% or 20%) plus a possible 3.8% surtax. Toggle the dividend option above to see the combined bite. This is the central trade-off owners weigh against a pass-through structure, where profit is taxed only once at personal rates.

When the rate isn't really 21%

Two regimes change the picture at the extremes. The 15% Corporate AMT on financial-statement income catches corporations averaging over $1 billion of book income. At the other end, closely held companies that hoard passive income can face the 20% accumulated-earnings or personal-holding-company taxes. Most ordinary corporations simply pay 21%.

Frequently asked questions

Is the rate really just 21%?

For a C corporation's regular tax, yes — a flat 21% on taxable income. The total cost rises once profits are paid out as dividends and taxed again to shareholders.

Should I be a C-corp or pass-through?

It depends on whether you reinvest or distribute profit, your personal bracket, and your plans to raise capital. The dividend toggle here shows the double-tax cost of distributing; a pass-through avoids it but taxes all profit at personal rates.

Does this include state tax?

No. State corporate taxes run from 0% (e.g. nine states) to 11.5% (New Jersey) and stack on top of the federal 21%.

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Pass-through instead?

Educational estimate — not tax advice. US 2026: flat 21% federal C-corp tax on taxable income; optional dividend layer at 2026 qualified-dividend rates (0% / 15% / 20% by shareholder income) plus 3.8% NIIT over $200k/$250k/$125k. It excludes state corporate tax, the 15% Corporate AMT computation, tax credits (R&D, etc.), net-operating-loss carryforwards and the 80% limit, the §163(j) interest limit, BEAT/GILTI, and accumulated-earnings/PHC taxes. Confirm with the IRS or a CPA.