What are corporate tax brackets based on in the US?

[Ludovic]

Probably an eminently Googlable problem but I don’t want to wade through tons of documentation.

Are corporate income tax brackets based on sheer amount of modified profit, like citizen’s tax brackets are based on sheer amount of modified income? So, any corporation that makes less than a million bucks in profit might be taxed at %20, but for anything over that million it jumps up to %35 for instance?

Or is it based on something else such as profit margins?

[Freddy_the_Pig]

@Ludovic

Probably an eminently Googlable problem but I don’t want to wade through tons of documentation.

Are corporate income tax brackets based on sheer amount of modified profit, like citizen’s tax brackets are based on sheer amount of modified income? So, any corporation that makes less than a million bucks in profit might be taxed at %20, but for anything over that million it jumps up to %35 for instance?

Or is it based on something else such as profit margins?

See wikipedia (under “federal tax rates”) for a table of US federal corporate income tax rates. The brackets are based on (surprise) “taxable income”. The precise definition of taxable income, I’m sure, fills up hundreds of pages in the tax code, but the basic concept is revenue minus expenses.

[friedo]

@Freddy_the_Pig

See wikipedia (under “federal tax rates”) for a table of US federal corporate income tax rates. The brackets are based on (surprise) “taxable income”. The precise definition of taxable income, I’m sure, fills up hundreds of pages in the tax code, but the basic concept is revenue minus expenses.

Yeah - the precise definitions of “revenue” and “expenses” are rather technical, but corporate income taxes in the US are basically based on the amount of net profit. A company that loses money in a quarter won’t be liable for income tax, even if they have gigantic revenues.