This guide presents a straightforward summary of the corporate tax regime in the United States for 2025, including the standard federal corporate tax rate, key surtaxes, and relevant thresholds directly impacting corporations operating in the US.
US Corporate Tax Rate Structure (2025)
For 2025, the US applies a flat federal corporate income tax rate, with certain surtaxes depending on company size and activities. The primary rate and related details are shown below.
| Description | Type | Rate (%) | Currency (USD) |
|---|---|---|---|
| Standard Federal Corporate Tax | Flat | 21% | – |
The flat 21% rate applies to all taxable income of C corporations, regardless of size or sector. There are no published tax brackets for federal corporate income tax as of 2025.
US Corporate Surtaxes and Special Federal Taxes
Additional federal surtaxes may apply in specific circumstances, especially to large or multinational corporations. Three significant additional taxes are summarized below:
| Tax Type | Rate (%) | Trigger Condition | Currency Threshold (USD) |
|---|---|---|---|
| Corporate Alternative Minimum Tax (CAMT) | 15% | Applies to C corporations with average annual adjusted financial statement income (AFSI) over threshold | $1,000,000,000 / $100,000,000 (for US members of a foreign-parented group) |
| Base Erosion and Anti-Abuse Tax (BEAT) | 10%1 | Applies to corporations with average annual gross receipts of at least $500,000,000 and certain base-eroding payments to related foreign persons | $500,000,000 |
| Branch Profits Tax | 30% | On foreign corporation’s US branch earnings and profits not reinvested in branch assets (treaty modifications possible) | – |
1 The BEAT rate is 10% for taxable income earned before January 1, 2026, and 10.5% thereafter.
Assessment Basis
All federal corporate taxes apply to corporate entities. There is no distinction by legal form; the rates above apply to taxable corporate income as defined under US tax law.
Key Points and Provisions
- No Published Holding Periods: There are currently no minimum or maximum holding periods disclosed in the available data for the federal corporate tax regime.
- Flat Rate Structure: The absence of brackets means all C corporations (large and small) face the same baseline 21% rate on taxable profits at the federal level.
- High-Income/Multinational Surtaxes: CAMT and BEAT impact only large corporations meeting defined income or gross receipts thresholds, primarily targeting multinational tax planning structures.
Summary Table: Federal US Corporate Tax Overview (2025)
| Tax Type | Rate (%) | Applicability/Threshold | Currency (USD) |
|---|---|---|---|
| Standard Corporate Tax | 21% | All US corporations | – |
| CAMT (Alternative Minimum Tax) | 15% | AFSI >$1bn / $100m2 | $1,000,000,000 / $100,000,000 |
| BEAT | 10%1 | Gross receipts >=$500m | $500,000,000 |
| Branch Profits Tax (Foreign Corporations) | 30% | Not reinvested US branch earnings | – |
1 BEAT increases to 10.5% after December 31, 2025.
2 $1bn threshold applies generally; $100m for US members of a foreign-parented group.
Pro Tips for Corporate Tax in the United States (2025)
- Monitor annual gross receipts and adjusted financial statement income if you operate a large corporate group, as crossing CAMT or BEAT thresholds can trigger substantial additional tax.
- For foreign corporations with US branches, review relevant tax treaties to potentially reduce the branch profits tax rate below 30%.
- Consistently evaluate your corporation’s payment structures to related foreign entities, as base-eroding payments can increase BEAT exposure if your gross receipts approach $500 million.
- Plan major transactions with the flat rate in mind—no loss of rate reduction for higher profit levels, but awareness of the fixed 21% corporate rate is crucial for modeling after-tax returns.
Official Resources
The US federal corporate tax system for 2025 is characterized by its flat 21% rate and the use of special surtaxes for large, often multinational entities. While standard businesses can plan for a consistent federal rate, those with significant global activity or foreign branches must pay close attention to additional tax triggers. Comprehensive tax planning—especially for corporations nearing surtax thresholds or with international operations—remains essential for efficient, compliant operations within the United States.