# Corporate tax calculator

https://salesbond.app/tools/corporate-tax-calculator/
Updated: 2026-11-07

# Corporate Tax Calculator: C Corp Tax and Dividends

A C corporation pays a flat 21% federal tax on its profit, and the owner pays tax again on dividends: 0%, 15% or 20%, plus 3.8% on high incomes. On $200,000 of profit paid out to a married owner with $100,000 of other taxable income, total federal tax is $66,004, or 33%. Free.

Enter the corporation’s taxable income for the year, how much of the after-tax profit you pay out as dividends and your other taxable income, after deductions. Results update as you type and stay in this browser until you start over.

## Corporate tax example

A C corporation earns $200,000 of taxable income in 2026 and pays all of the after-tax profit to its owner, who files jointly and has $100,000 of other taxable income.

| Tax | Amount |
| --- | --- |
| Corporate tax, 21% | $42,000 |
| 15% on $158,000 of dividends | $23,700 |
| Net investment income tax | $304 |
| Total federal tax | $66,004 |

The owner keeps $133,996 of the $200,000. The 3.8% tax applies to the $8,000 by which $258,000 of income passes the $250,000 joint threshold.

## How corporate tax is calculated

- **Corporation:** taxable income × 21% (Form 1120, Schedule J).
- **Dividends:** after-tax profit × the share paid out, taxed at 0%, 15% or 20% depending on where they fall on top of your other taxable income.
- **Net investment income tax:** 3.8% of the dividends over $200,000 single, $250,000 joint or $125,000 married filing separately.

## C corp or pass-through?

A C corp makes sense when profit stays in the business to grow it, because only the 21% applies until it is paid out. If you take most of the profit home, an LLC or S corp is usually taxed less: see your bracket with the [tax bracket calculator](https://salesbond.app/tools/tax-bracket-calculator/) and the payroll tax saving with the [S corp tax calculator](https://salesbond.app/tools/s-corp-tax-calculator/).

## Frequently asked questions

### What is the corporate tax rate in 2026?

A flat 21% of taxable income for C corporations, the rate in section 11(b) of the tax code since 2018. There are no brackets: $50,000 and $5 million of profit are taxed at the same rate. S corporations, partnerships and most LLCs do not pay it; their profit is taxed on the owners’ returns.

### What is double taxation of a C corp?

The same profit is taxed twice: first 21% at the corporation, then again on the owner’s return when it is paid out as dividends. At the top rates, 20% on qualified dividends plus 3.8% net investment income tax, the combined federal rate on profit paid out is 39.8%.

### How are dividends taxed in 2026?

Qualified dividends are taxed at 0% while your taxable income stays under $49,450 single or $98,900 married filing jointly, at 15% up to $545,500 or $613,700, and at 20% above. Net investment income tax of 3.8% applies over $200,000 of modified AGI single or $250,000 joint.

### How can a small corporation pay less tax?

Profit left in the company carries only the 21% until it is paid out. A reasonable salary to the owner is deductible for the corporation but carries payroll and income tax. Many small businesses choose an S corp or LLC instead, where profit is taxed once; compare with the S corp tax calculator.

### What does this calculator leave out?

It shows federal tax at 2026 rates. State corporate and income taxes, tax credits, the corporate alternative minimum tax for very large companies, the accumulated earnings tax and ordinary dividends that do not qualify for the lower rates are not included. It uses taxable income in place of modified AGI for the 3.8% tax.

### Is what I enter stored or sent anywhere?

No. The calculation runs in your browser and the figures are saved only in this browser so you can come back to them. Nothing you enter is sent to SalesBond or anyone else. Click Start over to clear it.

Related tools: [S corp tax calculator](https://salesbond.app/tools/s-corp-tax-calculator/), [tax bracket calculator](https://salesbond.app/tools/tax-bracket-calculator/), [self-employment tax calculator](https://salesbond.app/tools/self-employment-tax-calculator/). More on sales and running a sales team on the [SalesBond blog](https://salesbond.app/blog/) and the [home page](https://salesbond.app/).

## Official sources

- [IRS: Instructions for Form 1120](https://www.irs.gov/instructions/i1120) — corporate tax of 21% of taxable income.
- [IRS Rev. Proc. 2025-32, section 4.03](https://www.irs.gov/pub/irs-drop/rp-25-32.pdf) — 2026 breakpoints for the 0%, 15% and 20% rates.
- [IRS Topic no. 559, Net investment income tax](https://www.irs.gov/taxtopics/tc559) — 3.8% over $200,000 or $250,000.

**Updated on Nov 7, 2026.** This calculator is for information only and is not tax, legal or payroll advice. Results show 2026 federal tax only; check your corporation’s return with the IRS or a tax professional.