What is the standard corporate tax rate in the United States for most corporations?

The standard corporate tax rate in the United States for most corporations is 21%. This rate was established by the Tax Cuts and Jobs Act (TCJA) enacted in December 2017. Prior to this legislation, corporate tax rates were structured progressively, with rates varying based on income levels, leading to higher effective tax rates for many companies. The TCJA aimed to simplify the corporate tax system and enhance the competitiveness of U.S. corporations in the global market by reducing the flat rate to 21%.

This lower, single rate applies to the taxable income of corporations, resulting in a more predictable tax liability. The change has had a significant impact on corporate taxation, making the U.S. more attractive for businesses both domestically and internationally.