United States corporate taxes

The United States has no VAT — states levy retail sales taxes instead — and taxes company profit at a flat federal 21%, with most states adding their own corporate tax. Small businesses usually organise as pass-throughs (S corporations, LLCs) taxed only at the owner level. Companies are formed at state level; the IRS handles federal income and payroll taxes.

Currency USD ($)Tax year Company: calendar or adopted fiscal year · Personal: calendar yearLast reviewed 2026-07-14

21%
Corporate income tax
Federal flat rate; most states add their own
0–11%+
Sales tax
No VAT — combined state + local retail tax
10–37%
Federal income tax
Seven brackets (2026)
0–23.8%
Dividend tax
Qualified dividends, individuals
7.65%
Social Security & Medicare — employer
6.2% + 1.45%; the employee pays the same
0.6%
Federal unemployment (FUTA)
Net rate on the first $7,000 of wages

Company forms & registration

Companies are formed at state level — there is no federal company register. The federal tax ID (EIN) comes from the IRS. There is no minimum share capital.

Main legal forms	LLC, C corporation, S corporation (a tax election)^[6][22]An LLC is taxed as a pass-through by default; the S corporation is a tax status elected with the IRS, not a separate legal form.
S corporation eligibility	≤ 100 shareholders — individuals, certain trusts and estates; no non-resident aliens^[6]Elected with IRS Form 2553, signed by all shareholders; income passes through to the shareholders.
Registers a new employer meets	State Secretary of State (formation) → IRS (EIN, federal taxes) → state revenue & unemployment agencies^[18][22]
Federal tax ID (EIN)	Issued free by the IRS, online^[18]

Other statutory requirements

Ongoing obligations sit mostly at state level and are lighter than in the EU — private companies file no public financial statements.

Registered agent & annual report	Required in the state of formation (e.g. Delaware: report and franchise tax by 1 March)^[22]
Beneficial-owner reporting (BOI)	US-formed companies exempt since March 2025^[21]FinCEN now requires beneficial ownership reports only from foreign companies registered to do business in the US.
Document retention	Tax records 3 years; employment tax records 4 years^[19]Longer in special cases — e.g. 6 years where income is understated by more than 25%.

Corporate income tax

The federal rate is a flat 21%. Most states levy their own corporate income tax on top — rates and bases vary by state, and a few states have none.

Federal rate	21% flat^[1][3]Corporations figure their tax by multiplying taxable income by 21%.
Reduced small-business rate	None — small companies use pass-through forms instead^[6]S corporations, LLCs and partnerships pay no entity-level federal income tax; profit is taxed at the owners’ individual rates.
Qualified business income (QBI) deduction	20% of pass-through business income^[7]For owners of pass-throughs; limits phase in above $201,750 / $403,500 of income (2026). A $400 minimum deduction applies from 2026.
Return & payment	Form 1120 by the 15th day of the 4th month; quarterly estimated payments if tax is $500+^[4]A six-month filing extension is available with Form 7004 — it extends filing, not payment.

Withholding taxes & dividends

Dividends, interest & royalties to non-residents	30% (tax treaties often reduce it)^[17]
Qualified dividends (resident individuals)	0% / 15% / 20% by income^[14][15][7]2026: 0% up to $49,450 of taxable income (single) or $98,900 (joint); 20% above $545,500 / $613,700.
Net investment income tax	3.8% above $200,000 of income ($250,000 joint)^[16]Applies to dividends, interest, capital gains and similar investment income.
Non-qualified dividends	Taxed as ordinary income (10–37%)^[14][8]

Sales tax — no VAT

The US has no VAT or federal sales tax. Most states (and many cities and counties) levy a retail sales tax collected only on the final sale to the consumer — business purchases for resale are exempt with a resale certificate. A handful of states levy no general sales tax at all.

Combined state + local rates	Vary by state and locality; several states have none^[23]Example: California — 7.25% statewide base, up to 11.25% in some cities.
When must a remote seller register?	Physical presence, or economic nexus — commonly $100,000 of in-state sales^[2][24]Since South Dakota v. Wayfair (2018) states may tax out-of-state sellers; South Dakota’s threshold is $100,000, with no transaction-count test since 2023.
Returns	Filed in each state where registered^[24]Each state sets its own registration, rates and filing frequency.
Difference from VAT	Single-stage tax — no input-tax deduction system^[24]Tax is charged once, at retail; B2B resale purchases are exempted via certificates rather than refunded.

Payroll: income tax, Social Security & Medicare

Employers withhold federal (and any state) income tax and pay social contributions matched by the employee. Reporting is quarterly on Form 941, with annual W-2 wage statements. States levy their own unemployment insurance taxes on top of federal FUTA.

Federal income tax	10–37% (seven brackets)^[8]2026: top rate above $640,600 (single); standard deduction $16,100 single / $32,200 joint.
Social Security	6.2% employer + 6.2% employee, on wages up to $184,500 (2026)^[9][10]
Medicare	1.45% + 1.45%, no wage cap^[9]Employees pay an extra 0.9% on wages above $200,000; the employer does not match it.
Federal unemployment (FUTA)	6.0% on the first $7,000; net 0.6% after the state credit^[11]Plus state unemployment insurance (SUTA) — rates vary by state and employer history.
Federal minimum wage	$7.25/hour (since July 2009)^[20]Many states and cities set higher minimum wages; the higher rate applies.
Reporting	Form 941 quarterly; W-2 to employees and the SSA by 31 January^[12][13]

Other taxes companies meet

Beyond income and payroll taxes: local governments levy property taxes on real estate, the federal government levies excise taxes on fuel and certain goods, and a corporate alternative minimum tax applies to the largest corporate groups.

State franchise & annual taxes	Annual state fees — e.g. Delaware: franchise tax from $175 (corporations) or a flat $300 (LLCs)^[22]

Accounting & financial statements

Accounting follows US GAAP (the FASB codification). Unlike the EU, private companies file no public financial statements and face no statutory audit — audits are driven by investors and lenders.

Public companies	Audited annual report (Form 10-K) filed with the SEC^[25]
Tax year	Calendar year or an adopted fiscal year^[4]

Forms & filings

Every recurring return and report a typical company deals with, what triggers it, and where it goes. Registration-time and one-off filings are marked “per event”.

Form	What it is	Who files	Frequency	Deadline	Filed with
`1120`	Corporate income tax return^[4]	C corporations	annual	15th day of the 4th month after year end (15 April)	IRSIRS e-file
`1120-S`	S corporation income tax return^[5]	S corporations	annual	15th day of the 3rd month after year end (15 March)	IRSIRS e-file
`941`	Employer’s quarterly federal tax return^[12]	All employers	quarterly	Last day of the month after each quarter	IRSIRS e-file
`940`	Annual federal unemployment (FUTA) return^[11]	All employers	annual	31 January	IRSIRS e-file
`W-2`	Wage and tax statement^[13]	All employers	annual	31 January (to employees and the SSA)	SSASSA Business Services
`1099-NEC`	Non-employee compensation (contractors)^[13]	Businesses paying independent contractors	annual	31 January (to the IRS and recipients)	IRSIRS e-file
`Sales tax`	State sales tax returns^[24]	Sellers registered in a state	monthly	Set by each state; monthly is common	StateState portals
`Annual report`	State annual report & franchise tax^[22]	All companies	annual	Varies by state (Delaware: 1 March for corporations)	StateState portals

Compliance calendar

The same filings grouped by rhythm — what recurs when.

monthly

Sales taxSet by each state; monthly is common

quarterly

941Last day of the month after each quarter

annual

112015th day of the 4th month after year end (15 April)
1120-S15th day of the 3rd month after year end (15 March)
94031 January
W-231 January (to employees and the SSA)
1099-NEC31 January (to the IRS and recipients)
Annual reportVaries by state (Delaware: 1 March for corporations)

Sources

Numbered references cited throughout this profile. Laws link to consolidated texts in the official register.

26 U.S. Code §11 — tax imposed on corporationsgovinfo.gov (U.S. GPO) · law
South Dakota v. Wayfair, 585 U.S. 162 (2018)Supreme Court of the United States · law
Publication 542 — CorporationsIRS · authority
Instructions for Form 1120IRS · authority
Instructions for Form 1120-SIRS · authority
S corporationsIRS · authority
Rev. Proc. 2025-32 — 2026 inflation adjustments (IRB 2025-45)IRS · authority
2026 tax inflation adjustments — news releaseIRS · authority
Topic 751 — Social Security and Medicare withholding ratesIRS · authority
2026 COLA fact sheet — taxable maximumSocial Security Administration · authority
Topic 759 — Form 940, federal unemployment (FUTA) taxIRS · authority
Topic 758 — Form 941, employer’s quarterly returnIRS · authority
Employment tax due datesIRS · authority
Topic 404 — DividendsIRS · authority
Topic 409 — Capital gains and lossesIRS · authority
Net investment income taxIRS · authority
Withholding on payments to foreign persons (NRA withholding)IRS · authority
Get an employer identification number (EIN)IRS · authority
How long should I keep records?IRS · authority
Federal minimum wageU.S. Department of Labor · authority
Beneficial ownership information reportingFinCEN (U.S. Treasury) · register
Annual report & franchise taxDelaware Division of Corporations · register
California city & county sales & use tax ratesCalifornia CDTFA · authority
Sales & use taxSouth Dakota Department of Revenue · authority
Form 10-K — annual reportU.S. SEC (investor.gov) · authority

This guide is general information, not tax or legal advice. Rates and deadlines change — always verify against the linked laws and official sources, or ask a licensed advisor, before acting.