BI CFO / United States / C corporation tax calculator
C corporation tax calculator
Federal tax at 21%, an optional state rate and the qualified dividend tax when profit is paid out.
Enter your figures to see the result.
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Ask an accountantWorked example: $250,000 of corporate profit
A C corporation in a state with no corporate income tax earns $250,000 and pays it all out as a qualified dividend.
| Federal tax at 21% | $52,500 |
| Left in the corporation | $197,500 |
| Dividend tax at 15% | $29,625 |
| Reaches the owner | $167,875 |
| Combined rate | 32.9% |
Common questions
What is the US corporate tax rate?
21% federal on all taxable income of a C corporation. Most states add their own corporate income tax, deductible for federal purposes.
How are dividends taxed?
Qualified dividends are taxed at 0%, 15% or 20% depending on the owner’s income, plus the 3.8% net investment income tax above $200,000 single or $250,000 joint.
C corp or S corp?
A C corporation suits companies that reinvest profit, raise venture capital or may qualify for the section 1202 exclusion on sale. Owner-operators who take profits out each year often pay less as an S corporation.
Read the guide
For education only. Excludes the corporate alternative minimum tax, credits, the accumulated earnings tax and local taxes. Not tax advice.