Center for Federal Tax Policy

Corporate Income Taxes

In addition to the federal corporate income tax rate, many U.S. states levy corporate income taxes of their own. Economists have long understood that corporate income taxes are double taxes, since the same income is taxed once as profit, and once as individual income when distributed as dividends to shareholders.

Contrary to popular misconception, the ultimate burden of corporate income taxes doesn’t fall on corporations, but is instead borne by workers, shareholders and consumers. According to a recent Federal Reserve study, state corporate taxes hurt entrepreneurship

State Corporate Income Tax Rates and Brackets

Corporate Tax Rates by Country


Featured Research

Options for Reforming the Taxation of U.S. Multinationals

August 12, 2021

The Impact of the Biden Administration’s Tax Proposals by State and Congressional District

June 30, 2021

Biden Administration Changes to GILTI and FDII Will Yield Automatic State Tax Increases

May 25, 2021

Reviewing Recent Evidence of the Effect of Taxes on Economic Growth

May 21, 2021

Tax Policy in the First 100 Days of the Biden Administration

April 30, 2021

Effects of Proposed International Tax Changes on U.S. Multinationals

April 28, 2021


Related Articles

Yes, the U.S. Tax Code Is Progressive

September 17, 2021

How Would House Dems’ Tax Plan Change Competitiveness of U.S. Tax Code?

September 17, 2021

U.S. Would Have Third-Highest Corporate Tax Rate in OECD Under Ways and Means Plan

September 15, 2021

Corporations in Most States Would Face Income Tax Rate Exceeding 30 Percent Under Ways and Means Proposal

September 15, 2021

Top Ten Congressional Districts Impacted by Biden Corporate Tax Proposals

September 7, 2021

Tax Foundation Comments on the Wyden, Warner, Brown Discussion Draft

September 7, 2021

Expense Allocation: A Hidden Tax on Domestic Activities and Foreign Profits

August 26, 2021

Historical U.S. Federal Corporate Income Tax Rates & Brackets, 1909-2020

August 24, 2021

International Tax Proposals and Profit Shifting

August 24, 2021

Claiming 97 Percent of Small Businesses Exempt from Biden Taxes Is Misleading

August 20, 2021

Four Revenue Scores on Options to Change U.S. International Tax Rules

August 17, 2021

How Biden’s Tax Plans Could Negatively Impact Housing

August 13, 2021

Options for Reforming the Taxation of U.S. Multinationals

August 12, 2021

Senator Warren’s Corporate Book Tax Is Wrong Way to Fund New Spending

August 11, 2021

Should the U.S. Copy Denmark’s Social Welfare Policies?

August 3, 2021

Comparing Three Financing Options for President Biden’s Spending Proposals

August 3, 2021

Corporate Tax Revenue Forecasted as Robust following the 2017 Tax Reform

August 2, 2021

How Did We Ever Agree to Fund Infrastructure Investments?

July 28, 2021

How Biden’s Business Tax Proposals Would Impact Taxpayers Across States

July 19, 2021

Biden Plan’s Higher Taxation of Businesses Would Boost Collections to Highest in 40-Plus Years

July 8, 2021