What is corporate tax?

Corporate tax is imposed in the United States at the federal, most state, and some local levels on the income of entities treated for tax purposes as corporations. Since January 1, 2018, the nominal federal corporate tax rate in the United States of America is a flat 21% following the passage of the Tax Cuts and Jobs Act of 2017.

How does the corporate income tax work?

The United States imposes a tax on the profits of US resident corporations at a rate of 21 percent (reduced from 35 percent by the 2017 Tax Cuts and Jobs Act). The corporate income tax raised $424.7 billion in fiscal year 2022, accounting for 8.7 percent of total federal receipts and 1.7 percent of GDP.

What is the federal corporate tax rate?

The federal corporate tax rate in the United States is currently a flat 21%, as a result of the Tax Cuts and Jobs Act (TCJA), which President Donald Trump signed into law in 2017 and which went into effect in 2018. Previously, the maximum U.S. corporate income tax rate was 35%.