U.S. Corporation Tax Rate
It is common to say that the U.S. corporate tax rate is 35%, but the rate varies from 15% to 35%, depending on the amount of corporate income subject to tax for the year.
Using the table below, here is an example of how to compute your corporate tax amount:
If your corporate net income is $8,000,000, your tax would be:
- $113,900, plus
- 34% of income over $335,000 and under $10,000,000. The income over $335,000 is $7,665,000.
- 34% of $7,665,000 is $2,606,100.
- So your total corporate tax is $113,900 plus $2,606,100 = $2,720,000.
Tax Rate Schedule
If taxable income (line 30, Form 1120) on page 1 is:
| Over | But not over | Tax is | Of amount over |
| $0 | $50,000 | 15% | $0 |
| 50,000 | 75,000 | $7,500 + 25% | 50,000 |
| 75,000 | 100,000 | 13,750 + 34% | 75,000 |
| 100,000 | 335,000 | 22,250 + 39% | 100,000 |
| 335,000 | 10,000,000 | 113,900 + 34% | 335,000 |
| 10,000,000 | 15,000,000 | 3,400,000 + 35% | 10,000,000 |
| 15,000,000 | 18,333,333 | 5,150,000 + 38% | 15,000,000 |
| 18,333,333 | ____ | 35% | 0 |
