2024 Corporate Tax Rate
The 2024 Corporate Tax Rate is 21%.
Effective 2024-01-01Source: 2024 Instructions for Form 1120 (IRS)Verified 2026-08-29
Compared with 2023
Every figure on this page is unchanged from 2023.
| Item | 2023 | 2024 | Change |
|---|---|---|---|
| Rate | 21% | 21% | +0% (+0.0%) |
Who it applies to
C corporations filing U.S. federal income tax returns for tax year 2024.
What changed this year, and why
The federal corporate income tax rate for 2024 is 21%. This is a flat rate applied to a corporation's taxable income. The rate remained unchanged from 2023, when it was also 21%. Corporations report and calculate this tax on IRS Form 1120.
Common questions
- What is the corporate tax rate for 2024?
- The federal corporate income tax rate for 2024 is 21%. This flat rate is applied to a corporation's taxable income on IRS Form 1120.
- Has the corporate tax rate changed from 2023 to 2024?
- No. The corporate tax rate was 21% in 2023 and remains 21% in 2024.
Every amount on this page is a published figure rather than yours. The Corporate income tax calculator takes the number you enter and works it out against them, showing which published figure it used.
Which entities pay this rate, including an LLC that elects it
Every domestic corporation that conducts business, has income, or exists under state law but has not formally dissolved must file Form 1120, unless it qualifies for one of the special returns listed by the IRS. This includes C corporations, S corporations that were previously C corporations and still owe LIFO recapture tax, and certain other entities. A limited liability company (LLC) with more than one owner is ordinarily treated as a partnership and files Form 1065, while a single-member LLC is disregarded and reports on its owner's return. However, an LLC that files Form 8832, Entity Classification Election, to elect to be treated as an association taxable as a corporation must instead file Form 1120 and attach a copy of Form 8832 to that return. Once classified as a corporation, the LLC pays tax at the same flat 21% rate that applies to all other corporations filing Form 1120.
Limited liability companies (LLC). If an entity with more than one owner was formed as an LLC under state law, it is generally treated as a partnership for federal income tax purposes and files Form 1065, U.S. Return of Partnership Income. Generally, a single-member LLC is disregarded as an entity separate from its owner and reports its income and deductions on its owner's federal income tax return. The LLC can file a Form 1120 only if it has filed Form 8832 to elect to be treated as an association taxable as a corporation.
2024 Instructions for Form 1120, U.S. Corporation Income Tax Return (IRS)
The filing deadline, and the extension
A corporation must generally file its income tax return by the 15th day of the 4th month after the end of its tax year. A corporation with a fiscal year ending June 30 has an earlier deadline: the 15th day of the 3rd month after the end of its tax year. If the due date falls on a Saturday, Sunday, or legal holiday, the corporation may file on the next business day. A corporation that cannot meet the deadline may file Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns, to get more time. The corporation must file Form 7004 by the regular due date of the return. An extension grants extra time to submit the return but does not extend the time to pay any tax owed. Interest accrues on unpaid tax from the original due date. The corporation computes its tax by multiplying taxable income by the 21% rate and must pay what it owes by the original deadline.
File Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns, to request an extension of time to file. Generally, the corporation must file Form 7004 by the regular due date of the return.
2024 Instructions for Form 1120, U.S. Corporation Income Tax Return (IRS)
Corporations pay the tax in four installments
Corporations must pay estimated tax in four installments throughout the year if they expect their 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. If any of those 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 all installment payments. If a corporation discovers after depositing estimated tax that its liability will be more or less than originally estimated, it may need to refigure its required installments. If earlier installments were underpaid, the corporation may owe an estimated tax penalty. If the corporation overpaid estimated tax, it may be able to get a quick refund of overpayment by filing Form 4466. The 21% corporate tax rate is used to figure the total tax on which the installment amounts are based.
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.
2024 Instructions for Form 1120, U.S. Corporation Income Tax Return (IRS)
Personal service corporations pay at the same rate
A personal service corporation is defined as a corporation whose principal activity during 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 activities 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. A personal service corporation is subject to the same 21% corporate tax rate as any other C corporation. The corporation's taxable income is multiplied by 21% to determine its income tax liability. A personal service corporation must use a calendar tax year unless it qualifies for one of the exceptions, such as electing a different year under section 444 or establishing a business purpose for a fiscal year and obtaining IRS approval.
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.
2024 Instructions for Form 1120, U.S. Corporation Income Tax Return (IRS)
What filing late costs
A corporation that does not file its return by the due date, including any extension, is subject to a late filing penalty. The penalty is 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 penalty accumulates each month until the cap is reached. A minimum penalty applies to any return required to be filed in 2025 that is more than 60 days late: it is the smaller of the tax due or $510. The penalty will not be imposed if the corporation can show that the failure to file on time was due to reasonable cause. In addition to the late filing penalty, a corporation that does not pay its tax when due may be penalized for late payment. Interest accrues on unpaid tax and penalties from the original due date until the date of payment, at a rate determined under section 6621. The corporation's income tax is computed at the 21% rate, and all penalties are calculated based on the resulting unpaid tax.
Late filing of return. 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 tax return required to be filed in 2025 that is more than 60 days late is the smaller of the tax due or $510.
2024 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.
2024 Instructions for Form 1120 (IRS)
- Rate
Line 1a. Income tax. Multiply taxable income (page 1, line 30) by 21% (0.21). Enter this amount on line 1a.