Business Tax Calculator

Corporate tax is the tax a government charges on a company's taxable profit, which is broadly its revenue minus allowable business expenses, depreciation, and other deductions. It is separate from the income tax the owners pay on any salary or dividends they take out. This calculator estimates the company-level tax on profit, not the personal tax that follows when profits are distributed.

A pass-through business (such as a US sole proprietorship, partnership, LLC, or S-corporation) doesn't pay corporate tax itself: its profit 'passes through' to the owners, who report it on their personal returns. A C-corporation is taxed on its profit at the corporate rate, and the owners are taxed again on dividends, which is often called double taxation. The right structure depends on profit level, how much you reinvest versus take out, and your country's rules, so this is a question for a qualified accountant.

The statutory rate is the headline rate set by law (e.g. 21% US federal). The effective rate is the actual percentage of pre-tax profit you pay once deductions, credits, and bracket-by-bracket calculations are applied. The effective rate is almost always lower than the top statutory rate and is the number that matters for after-tax profit planning.

In many countries, yes. Some apply a lower small-profits rate up to a threshold and a higher main rate above it, sometimes with a tapered band in between; others apply a flat rate regardless of size. Reduced rates or concessions for small businesses, manufacturing, or new companies are also common. Because these vary widely and change with each budget, treat the figure here as an estimate and confirm the current brackets for your jurisdiction.

No. The estimate covers the national or federal corporate tax only. Many places add a state, provincial, cantonal, or municipal business tax on top, which can raise your combined rate meaningfully. It also doesn't model payroll taxes, capital-gains tax, or sales tax / VAT / GST. For total tax cost, add those layers separately or speak to a local tax professional.