United States Corporate Income Tax
Detailed corporate income tax rates and rules for United States in 2026.
The United States imposes a flat 21% federal corporate income tax rate on all C corporations, enacted under the Tax Cuts and Jobs Act (TCJA) of 2017. This replaced the previous graduated rate structure that topped out at 35%. The U.S. corporate tax applies to worldwide income of domestic corporations, with foreign tax credits available to mitigate double taxation. Pass-through entities such as S corporations, partnerships, and LLCs are not subject to corporate tax—instead, their income flows through to owners' individual returns.
Standard Rate
21%
Additional Notes
Many states impose additional corporate income taxes ranging from 2.5% to 11.5%, bringing the combined federal-state rate to approximately 25–30% depending on the state. A corporate alternative minimum tax (CAMT) of 15% applies to corporations with average annual adjusted financial statement income exceeding $1 billion. Qualified small businesses may also benefit from the Section 199A deduction, which allows eligible pass-through entity owners to deduct up to 20% of qualified business income.
How United States Corporate Tax compares
United States’s corporate tax rate of 21% is the 123rd highest of 203 countries TaxAtlas tracks, below the global average of 22.2% and North America’s regional average of 22.3%.
