What is the tax rate for corporations?

The tax rate for corporations in California depends on their net income. Generally, the tax rate for corporations is 8.84% of net income, with a minimum of $800. However, if the corporation is deemed to be a Large Corporate Filer, the rate increases to 11.84%. The Large Corporate Filer classification is applied to any corporation that has a net income subject to tax of more than $1,000,000. Furthermore, a “water’s edge” tax rate of 9.84% is applied to corporations with foreign income. This rate applies to corporations that have income earned in foreign countries that is not subject to U.S. tax, but is also not exempt from California taxes. Finally, the “separate return” tax rate is applied to members of a corporate group. This is a rate of 9.00% for all taxable income along with a $800 minimum tax. In conclusion, the rate for corporations in California depends on the amount of their net income and can range from 8.84% to 11.84%. Corporations with foreign income are subject to the “water’s edge” rate of 9.84%, and members of corporate groups are subject to the “separate return” rate of 9.00%.

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What is the tax rate for corporations?

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