Corporate Tax Calculator
Calculate corporate income tax for C-Corporations and compare with pass-through entities (S-Corp, LLC). Understand double taxation, state taxes, and deduction limits.
Business Structure
Revenue & Expenses
Deductions
Limited to 10% of taxable income. Excess carries forward 5 years.
Income Calculation
Gross Revenue:$5000000.00
Gross Profit:$500000.00
Taxable Income:$180000.00
Charitable Deduction:$20000.00
Federal Corporate Tax
$53450.00
Graduated rates: 15% ($0-50K) → 25% → 34% → 35% → 38% → 21% (over $18.33M flat)
California Corporate Tax
State Rate:8.84%
State Tax:$15912.00
Total Corporate Tax
$69362.00
Effective rate: 38.53%
Double Taxation Impact
Corporate Tax:$69362.00
Dividend Tax (est.):$3319.14
Total Double Tax:$72681.14
Net to Owners:$107318.86
Assumes 20% of net income paid as dividends at 15% shareholder tax rate.
Pass-Through Comparison
C-Corp Total Tax:$72681.14
Pass-Through Estimate:$44292.50
Compare total tax burden including dividend taxation vs pass-through owner taxation.
Net Income After Tax
$110638.00
Retained earnings available for reinvestment or future dividends
C-Corp vs Pass-Through Decision
- C-Corp Advantages: Unlimited shareholders, stock options, retained earnings, potential lower tax at high profits (21% flat).
- C-Corp Disadvantage: Double taxation (corporate tax + dividend tax). No QBI deduction.
- S-Corp Advantages: No corporate tax, pass-through, QBI deduction, reduce SE tax via salary/distribution split.
- S-Corp Limits: 100 shareholders max, US residents only, one class of stock.
- LLC Advantages: Flexibility, pass-through, QBI deduction, no shareholder limits.
- LLC Disadvantage: Full SE tax on net income unless taxed as S-Corp.
- Break-even: C-Corp preferred when profits retained (not distributed) or shareholders are tax-exempt.
- Qualified Business Income: Pass-through entities eligible for 20% QBI deduction (not C-Corps).
Federal Corporate Tax Brackets (2024)
- $0 - $50,000: 15%
- $50,000 - $75,000: 25%
- $75,000 - $100,000: 34%
- $100,000 - $335,000: 39%
- $335,000 - $10,000,000: 34%
- $10,000,000 - $15,000,000: 35%
- $15,000,000 - $18,333,333: 38%
- Over $18,333,333: Flat 21%