What are the Business Tax Brackets?

All businesses are taxed on their gross profits. The rate at which each company is taxed depends on their tax bracket. Generally, the higher a company brings in in earnings, the higher a tax bracket it will potentially be placed in. The financial structure of a company can also factor into its tax bracket.

Tax rates and tax brackets for businesses are not set in stone and are subject to being shifted every year. Tax brackets allow a business to see which category they fall into based on the amount of income their businesses generates per year. Each bracket then has its own tax rate. The current tax brackets and their corresponding rates are as follows:

• All annual income up to $50,000: 15 percent


• Annual income from $50,000 to $75,000: 25 percent


• Annual income from $75,000 to $100,000: 34 percent


• Annual income from $100,000 to $335,000: 39 percent


• Annual income from $335,000 to $10 million: 34 percent


• Annual income from $10 million to $15 million: 35 percent


• Annual income from $15 million to $18.33 million: 38 percent


• Annual income over $18.33 million: 35 percent

Corporations

All businesses, regardless of size must pay an amount in taxes based on their revenue. Businesses that are incorporated, however, pay the corporate income tax. While the rates listed above are the same, it is slightly different in that the amount or income taxed is not the actual net income of the corporation, but its gross profits (net income minus expenses).