Corporate Tax Calculator
Estimate your federal and state corporate tax based on your business type, income, and state.
How is corporate tax calculated?
C-Corporations pay a flat 21% federal corporate income tax on net profit, plus a separate state corporate income tax that varies widely — from 0% in states like Nevada, South Dakota, Wyoming, Texas, Washington, and Ohio, to over 9% in states like New Jersey, Minnesota, and Illinois. S-Corporations and LLCs are "pass-through" entities: the business itself generally doesn't pay federal corporate tax, and profit instead flows through to the owner's personal tax return, taxed at their individual income tax rate. Many states still impose some form of entity-level tax or franchise tax on pass-through businesses, so this calculator applies an illustrative state-level rate to both business types for comparison — treat the pass-through state figure as a simplified estimate, since actual pass-through entity taxes vary by state (some use flat fees, gross receipts taxes, or elective PTE taxes rather than a rate on net income).
C-corp vs. S-corp/LLC taxation
The core difference is double taxation risk: C-corp profits can be taxed once at the corporate level and again when distributed to shareholders as dividends. Pass-through entities avoid the corporate-level tax, with profit taxed only once, at the owner's personal rate. This calculator estimates the entity-level piece only — S-corp and LLC owners should also account for their personal income tax bracket, which isn't captured here.
This is a simplified estimate for general planning purposes only, not tax advice — consult a CPA or tax attorney about your specific business structure before making decisions.
Frequently Asked Questions
What is the federal corporate tax rate?
The federal corporate income tax rate is a flat 21% on net taxable income for C-Corporations, set by the Tax Cuts and Jobs Act of 2017. S-Corporations and LLCs taxed as pass-through entities don't pay this rate directly — their profit flows through to the owners' personal tax returns instead.
Which states have no corporate income tax?
Nevada, South Dakota, Wyoming, Texas, Washington, and Ohio have no traditional corporate income tax (though some, like Texas, Ohio, and Washington, impose alternative gross receipts or margin taxes instead). Businesses incorporated or operating in these states may still owe federal corporate tax if structured as a C-Corp.
What's the difference between C-corp and S-corp taxes?
A C-Corporation pays the flat 21% federal corporate tax on its profits, and shareholders pay personal tax again on any dividends — sometimes called "double taxation." An S-Corporation is a pass-through entity: it generally doesn't pay federal corporate tax itself, and profit is taxed once, at the owner's personal income tax rate.
How is an LLC taxed?
By default, an LLC is a pass-through entity, meaning profit is reported on the owner's personal tax return and taxed at their individual rate rather than a separate corporate rate. An LLC can also elect to be taxed as a C-Corporation or S-Corporation, which changes how its profits are taxed.
Do pass-through businesses pay any state-level tax?
Many states impose some form of entity-level tax on pass-through businesses, such as a franchise tax, gross receipts tax, or an elective pass-through entity (PTE) tax. This calculator applies an illustrative state rate to pass-through businesses as a simplified estimate — actual state tax treatment varies significantly, so confirm your state's specific rules with a tax professional.
Which state has the highest corporate tax rate?
New Jersey and Minnesota are typically among the highest, with top marginal corporate tax rates over 9-11%. Illinois, Alaska, and Maine also rank among the higher-tax states for corporations.
Is this calculator tax advice?
No. This tool provides a simplified estimate for general planning purposes only, using approximate federal and state corporate tax rates. It doesn't account for deductions, credits, multi-state apportionment, or your personal tax situation. Consult a CPA or tax attorney for advice specific to your business structure.