2022 Corporate Tax Rate
The 2022 Corporate Tax Rate is 21%.
Effective 2022-01-01Source: 2022 Instructions for Form 1120 (IRS)Verified 2026-08-29
Compared with 2021
Every figure on this page is unchanged from 2021.
| Item | 2021 | 2022 | Change |
|---|---|---|---|
| Rate | 21% | 21% | +0% (+0.0%) |
Who it applies to
C corporations filing U.S. federal income tax returns (Form 1120) for tax year 2022
What changed this year, and why
The federal corporate income tax rate is a flat 21% for tax year 2022.
Common questions
- What is the corporate tax rate for 2022?
- The federal corporate income tax rate is a flat 21% for 2022. A corporation multiplies its taxable income by 21% to determine its tax liability.
Which entities pay this rate, including an LLC that elects it
For tax year 2022, all C corporations must file Form 1120 to report their income, gains, losses, deductions, credits, and to calculate their income tax liability. The filing requirement applies to all domestic corporations, including those in bankruptcy, unless they are exempt under section 501. Even corporations with no taxable income must file a return. The form is used by regular C corporations, not S corporations (which file Form 1120-S). Entities that have elected to be taxed as corporations must also file Form 1120 along with Form 8832 to document their entity classification election. Limited liability companies generally file as partnerships or disregarded entities, but if an LLC elects to be treated as a corporation, it must file Form 1120.
Use Form 1120, U.S. Corporation Income Tax Return, to report the income, gains, losses, deductions, credits, and to figure the income tax liability of a corporation.
2022 Instructions for Form 1120, U.S. Corporation Income Tax Return (IRS)
The filing deadline, and the extension
Corporations must file their income tax return by the 15th day of the 4th month following the end of their tax year. This general rule applies to all corporations, including new corporations filing short-period returns and dissolved corporations, though each has specific timing requirements based on their particular circumstances. Corporations with fiscal tax years ending June 30 receive different treatment and must file by the 15th day of the 3rd month after their tax year ends. If the due date falls on a Saturday, Sunday, or legal holiday, corporations can file on the next business day without penalty. The IRS allows corporations to request an automatic extension of time to file by submitting Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns, by the regular due date of the return. Private delivery services designated by the IRS can also be used to meet the timely mailing as timely filing rule.
Generally, a corporation must file its income tax return by the 15th day of the 4th month after the end of its tax year. A new corporation filing a short-period return must generally file by the 15th day of the 4th month after the short period ends. A corporation that has dissolved must generally file by the 15th day of the 4th month after the date it dissolved.
2022 Instructions for Form 1120, U.S. Corporation Income Tax Return (IRS)
Corporations pay the tax in four installments
Corporations must make installment payments of estimated tax throughout the year if they expect their total tax liability for the year, after subtracting applicable credits, to be $500 or more. These installment payments are due on the 15th day of the 4th, 6th, 9th, and 12th months of the tax year. If any of these dates falls on a Saturday, Sunday, or legal holiday, the payment is due on the next regular business day. Corporations must use electronic funds transfer to make these estimated tax payments. If a corporation's actual tax liability differs from what it originally estimated, it may need to refigure its required installments, and underpayment of earlier installments can result in penalty charges. Corporations that overpay their estimated tax can request a quick refund by filing Form 4466. A corporation that fails to make estimated tax payments when due may face an underpayment penalty for the period of underpayment, particularly if its tax liability reaches $500 or more and it did not pay at least the smaller of its current year tax or prior year tax.
Generally, the following rules apply to the corporation's payments of estimated tax. • The corporation must make installment payments of estimated tax if it expects its total tax for the year (less applicable credits) to be $500 or more. • The installments are due by the 15th day of the 4th, 6th, 9th, and 12th months of the tax year.
2022 Instructions for Form 1120, U.S. Corporation Income Tax Return (IRS)
Personal service corporations pay at the same rate
Personal service corporations are subject to special rules regarding their definition and tax year requirements. A personal service corporation is defined as a corporation whose principal activity during the testing period involves performing personal services in specific professional fields including accounting, actuarial science, architecture, consulting, engineering, health, law, and the performing arts. The testing period for determining whether a corporation qualifies as a personal service corporation is generally the prior tax year, unless the corporation is newly formed. These personal services must be substantially performed by employee-owners of the corporation. Personal service corporations face restrictions on their choice of tax year and must generally use a calendar tax year. However, exceptions exist if the corporation elects an alternative tax year structure that ends with reference to the calendar year, establishes a valid business purpose for a different tax year with IRS approval, or makes an election under section 444 to use a tax year other than a calendar year. When making a section 444 election, the corporation's deductions for certain payments to employee-owners may be limited under specific provisions of the tax code.
If the corporation is a personal service corporation, check Item A, box 3. A personal service corporation is a corporation whose principal activity for the testing period is the performance of personal services. The testing period for a tax year is generally the prior tax year unless the corporation has just been formed. Personal services include any activity performed in the fields of accounting, actuarial science, architecture, consulting, engineering, health, law, and the performing arts. The services must be substantially performed by employee-owners.
2022 Instructions for Form 1120, U.S. Corporation Income Tax Return (IRS)
What filing late costs
Corporations that fail to file their tax return by the due date, including any approved extensions, face significant financial penalties. The penalty is calculated as 5% of the unpaid tax amount for each month or portion of a month that the return remains late, with the total penalty capped at a maximum of 25% of the unpaid tax. For returns that are more than 60 days late, there is a minimum penalty of the smaller of the total tax due or $450. This minimum penalty ensures that even substantially overdue returns face a meaningful consequence regardless of the tax amount owed. However, the penalty will not be imposed if the corporation can demonstrate that the failure to file on time resulted from reasonable cause rather than willful neglect. This reasonable cause exception provides relief for corporations facing legitimate circumstances that prevented timely filing, though the burden of proof rests with the corporation to establish such cause to the satisfaction of the IRS.
A corporation that does not file its tax return by the due date, including extensions, may be penalized 5% of the unpaid tax for each month or part of a month the return is late, up to a maximum of 25% of the unpaid tax. The minimum penalty for a return that is more than 60 days late is the smaller of the tax due or $450. The penalty will not be imposed if the corporation can show that the failure to file on time was due to reasonable cause.
2022 Instructions for Form 1120, U.S. Corporation Income Tax Return (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
2022 Instructions for Form 1120 (IRS)
- Rate
Multiply taxable income (page 1, line 30) by 21%. Enter this amount on line 2.