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


Related Articles

Comparing the Trade-offs of Carbon Taxes and Corporate Income Taxes

April 23, 2021

Corporate Investment Outweighs Federal Revenue Losses Since TCJA

April 22, 2021

Raising the Corporate Rate to 28 Percent Reduces GDP by $720 Billion Over Ten Years

April 21, 2021

Options for Reforming America’s Tax Code 2.0

April 19, 2021

Labor Share of Net Income is Within Its Historical Range

April 13, 2021

Denying Deductions for Pharma Ads Is Bad Tax Policy

April 12, 2021

Biden’s Tax Plan Would Restore U.S. Exceptionalism—But Not in a Good Way

April 9, 2021

U.S. Effective Corporate Tax Rate Is Right in Line With Its OECD Peers

April 2, 2021

Combined Corporate Rates Would Exceed 30 Percent in Most States Under Biden’s Tax Plan

April 1, 2021

President Biden’s Infrastructure Plan Raises Taxes on U.S. Production

March 31, 2021

CBO Study: Benefits of Biden’s $2 Trillion Infrastructure Plan Won’t Outweigh $2 Trillion Tax Hike

March 31, 2021

A CEO Tax Is the Wrong Way to Help Workers

March 30, 2021

Wyden’s Energy Tax Proposal a Mixed Bag

March 11, 2021

Phasing in a Corporate Rate Hike Would Be the Worst of Both Worlds

March 9, 2021

Combined State and Federal Corporate Income Tax Rates in 2021

March 3, 2021

Evaluating Proposals to Increase the Corporate Tax Rate and Levy a Minimum Tax on Corporate Book Income

February 24, 2021

Changes to the Tax Base Matter When Evaluating the Impact of Tax Reforms

February 23, 2021

Sources of Tax Revenue: U.S. vs. OECD

February 17, 2021

5 Observations on Janet Yellen’s Recent Confirmation Testimony

January 22, 2021

Double Taxation of Corporate Income in the United States and the OECD

January 13, 2021