What Is the US Corporate Tax Rate? Key Details You Need to Know

What Is the Actual Corporate Income Tax Rate in the U.S.? Do You Know These Important Details?

In the United States, corporate income tax is a federal tax levied on business profits. In recent years, with the rapid development of the global economy and adjustments to tax policies in various countries, the U.S. corporate income tax system has undergone multiple reforms. So, what exactly is the current corporate income tax rate in the U.S., and what important details should we pay attention to?

Basic Corporate Income Tax Rate in the U.S.

As of 2025, the basic federal corporate income tax rate in the U.S. is 21%. This rate was established in the Tax Cuts and Jobs Act TCJA passed at the end of 2017. Prior to this reform, the highest corporate income tax rate in the U.S. was as high as 35%, but it was significantly reduced after the reform to promote domestic investment and economic growth.

It's worth noting that although 21% is the standard federal rate, individual states may also impose additional state-level corporate income taxes. For example, the corporate income tax rate in New York State is around 6.5%, while Nevada has no state-level corporate income tax at all. When calculating their actual tax burden, businesses must take into account specific regulations in their respective states.

Impact of the Global Minimum Tax Rule

In recent years, there has been increasing regulatory scrutiny of multinational corporations' taxation worldwide. In response, the U.S. officially implemented the Inflation Reduction Act in 2025, which includes an important global minimum tax rule. According to this rule, U.S. companies are required to maintain an effective global tax rate of at least 15%. If a company does not pay enough taxes in other countries to meet this standard, it must make up the difference by paying additional taxes to the U.S.

This regulation has attracted significant attention because it not only affects U.S.-based companies but also has far-reaching implications for foreign companies with branches in the U.S. For instance, earlier this year, Amazon was required to pay hundreds of millions of dollars in back taxes due to failing to meet the global minimum tax requirement, sparking widespread public discussion.

Special Treatment for Small Businesses

For small businesses, the U.S. corporate income tax system offers more flexibility. Under the Tax Cuts and Jobs Act, small businesses with annual revenues below a certain threshold can enjoy lower effective tax rates or simplified reporting processes. Certain types of income, such as qualified service income, may also qualify for special preferential terms, further reducing the tax burden.

However, these preferential policies come with restrictions. Companies must meet specific eligibility criteria and submit detailed financial reports to receive corresponding reductions. In practice, many small and medium-sized enterprises often need to hire professional tax advisors to help them plan their tax arrangements effectively.

Recent News Updates

Recently, the topic of U.S. corporate income tax has once again captured public attention. On one hand, due to persistent inflationary pressures, the U.S. is actively seeking new sources of fiscal revenue, including the possibility of raising corporate income tax rates; on the other hand, the international community's demand for balancing fair competition environments is growing, putting pressure on the U.S. to adjust its tax policies in the coming years.

For example, earlier this year, some Democratic lawmakers proposed a bill called the Affordable Care Act, aiming to increase taxes on high-income businesses and individuals to support the development of public healthcare services. Although the proposal ultimately failed to gain congressional approval, it reflects the intense discussions currently taking place among policymakers regarding corporate income tax issues.

Conclusion

In summary, while the U.S. corporate income tax rate appears straightforward at first glance-21% as the federal benchmark rate plus differentiated state-level surcharges-it actually involves numerous complex factors behind the scenes. Whether it’s the global minimum tax rule or differentiated treatment for businesses of different sizes, these all reflect the increasingly refined characteristics of modern tax systems. Looking ahead, as global economic conditions change and technological advancements bring new challenges, both the U.S. and the world as a whole will have greater room for innovation and adjustment in their tax policies.