1. Money
You can opt-out at any time. Please refer to our privacy policy for contact information.

Corporate Tax Rates

By

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 (2005 through 2014)

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

©2014 About.com. All rights reserved.