C-Corp Tax Calculator

Since the 2017 Tax Cuts and Jobs Act, the federal corporate income tax rate is a flat 21% of taxable income — there are no more graduated corporate brackets like before 2018. Federal corporate tax = taxable income × 21%.

A C-corp pays 21% corporate tax on its profits, and then any profit distributed to shareholders as dividends is taxed again on their personal returns (typically at 0%, 15%, or 20% qualified-dividend rates) — the same dollar of profit is taxed at both the corporate and shareholder level, unlike a pass-through entity (S-corp, LLC, partnership).

No — this calculates federal tax only. Most states also levy their own corporate income tax (rates and rules vary significantly by state, and a few states have no corporate income tax at all), which would apply on top of this federal amount.

Reasons include easier access to venture capital and multiple stock classes, no limit on the number or type of shareholders, potential eligibility for the Section 1202 qualified small business stock capital gains exclusion, and the ability to retain earnings in the corporation at the flat 21% rate rather than passing all profit through to the owner's personal return.