Business tax calculator
Federal and state tax for a C corporation, S corporation, partnership or LLC in any state, for 2025 or 2026.
Tax paid by the corporation. Dividends paid to shareholders are taxed again on their returns. Estimates only.
Federal corporate income tax$105,000
| Taxable income | $500,000 |
|---|---|
| Federal tax (21%) | $105,000 |
Sources: IRC section 11 (21% corporate rate)
California business taxes$44,200
| State corporate income tax | $44,200 |
|---|---|
| State total | $44,200 |
- Applies the state rate to the income you enter; apportionment, state adjustments and minimum or franchise taxes are not included.
- Rate taken from the Tax Foundation compilation of state law; check the state corporate return instructions for your year.
Sources: Tax Foundation: state corporate income tax rates 2026 · Tax Foundation: state corporate income tax rates 2025 · Tax Foundation: 2026 state tax changes
How it’s calculated
C corporations pay a flat 21% federal tax on taxable income, plus the state corporate tax for the year chosen, applied as if all income were earned in that state.
Partnerships, LLCs and S corporations pay no federal income tax themselves. Their profit is divided among the owners and taxed on each owner’s return, using the same federal and state rules as our income tax calculator. A one-owner LLC is taxed like a sole proprietorship and an LLC with two or more owners like a partnership, unless it elects corporate treatment. Partners and LLC members who work in the business pay self-employment tax on their share; limited partners do not. S corporation owners are paid a salary, taxed as wages with payroll taxes, and the rest of the profit is not subject to self-employment tax.
Some states also tax the business itself. The calculator includes the California LLC tax and fee, $800 tax on limited partnerships and LLPs, and 1.5% S corporation tax; Tennessee franchise and excise tax; the Illinois replacement tax; the DC unincorporated business and corporate franchise taxes; and the Texas franchise tax, Ohio commercial activity tax and Oregon corporate activity tax. Items it does not cover are listed with each result.
Worked example
A Texas general partnership with $100,000 of profit and two partners who work in the business pays no tax itself in 2026. Each partner owes $7,065 of self-employment tax and $2,667 of federal income tax on a $50,000 share, $19,464 for both.