Corporate Tax Calculator
Calculate federal C-Corporation income tax at the 21% statutory rate, state corporate franchise taxes, R&D tax credits, and after-tax retained earnings.
Federal 21% & State Corporate Taxes
Corporate Income Tax Formula
Federal Tax = Taxable Net Income × 21% | State Corp Tax = Taxable Net Income × State Rate % | Net Tax Payable = max(0, Federal + State − Tax Credits)- Federal Corporate Rate: Flat 21% on all taxable corporate income under Section 11 of the Internal Revenue Code.
- State Corporate Taxes: Range from 0% in states like Texas, Nevada, and Washington (which charge gross receipts taxes instead) up to 9.8% in Minnesota or 11.5% in New Jersey.
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- Applies to C-Corporations filing IRS Form 1120.
Frequently Asked Questions
What is corporate double taxation?
Double taxation occurs when a C-Corporation pays 21% corporate income tax on its earnings, and then distributes the remaining profits to shareholders as dividends, which shareholders must report and pay tax on at dividend tax rates (up to 20% + 3.8% NIIT).
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