# § 11. Tax imposed
**(a)** **Corporations in general** A tax is hereby imposed for each taxable year on the taxable income of every corporation.
**(b)** **Amount of tax** The amount of the tax imposed by subsection (a) shall be 21 percent of taxable income.
**(c)** **Exceptions** Subsection (a) shall not apply to a corporation subject to a tax imposed by—
**(1)** section 594 (relating to mutual savings banks conducting life insurance business),
**(2)** subchapter L (sec. 801 and following, relating to insurance companies), or
**(3)** subchapter M (sec. 851 and following, relating to regulated investment companies and real estate investment trusts).
**(d)** **Foreign corporations** In the case of a foreign corporation, the taxes imposed by subsection (a) and section 55 shall apply only as provided by section 882.
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**Source Credit**: (Aug. 16, 1954, ch. 736, 68A Stat. 11; Mar. 30, 1955, ch. 18, § 2, 69 Stat. 14; Mar. 29, 1956, ch. 115, § 2, 70 Stat. 66; Pub. L. 85–12, § 2, Mar. 29, 1957, 71 Stat. 9; Pub. L. 85–475, § 2, June 30, 1958, 72 Stat. 259; Pub. L. 86–75, § 2, June 30, 1959, 73 Stat. 157; Pub. L. 86–564, title II, § 201, June 30, 1960, 74 Stat. 290; Pub. L. 86–779, § 10(d), Sept. 14, 1960, 74 Stat. 1009; Pub. L. 87–72, § 2, June 30, 1961, 75 Stat. 193; Pub. L. 87–508, § 2, June 28, 1962, 76 Stat. 114; Pub. L. 88–52, § 2, June 29, 1963, 77 Stat. 72; Pub. L. 88–272, title I, § 121, Feb. 26, 1964, 78 Stat. 25; Pub. L. 89–809, title I, § 104(b)(2), Nov. 13, 1966, 80 Stat. 1557; Pub. L. 91–172, title IV, § 401(b)(2)(B), Dec. 30, 1969, 83 Stat. 602; Pub. L. 94–12, title III, § 303(a), (b), Mar. 29, 1975, 89 Stat. 44; Pub. L. 94–164, § 4(a)–(c), Dec. 23, 1975, 89 Stat. 973, 974; Pub. L. 94–455, title IX, § 901(a), Oct. 4, 1976, 90 Stat. 1606; Pub. L. 95–30, title II, § 201(1), (2), May 23, 1977, 91 Stat. 141; Pub. L. 95–600, title III, § 301(a), Nov. 6, 1978, 92 Stat. 2820; Pub. L. 97–34, title II, § 231(a), Aug. 13, 1981, 95 Stat. 249; Pub. L. 98–369, div. A, title I, § 66(a), July 18, 1984, 98 Stat. 585; Pub. L. 99–514, title VI, § 601(a), Oct. 22, 1986, 100 Stat. 2249; Pub. L. 100–203, title X, § 10224(a), Dec. 22, 1987, 101 Stat. 1330–412; Pub. L. 100–647, title I, § 1007(g)(13)(B), Nov. 10, 1988, 102 Stat. 3436; Pub. L. 103–66, title XIII, § 13221(a), (b), Aug. 10, 1993, 107 Stat. 477; Pub. L. 115–97, title I, §§ 12001(b)(11), 13001(a), Dec. 22, 2017, 131 Stat. 2094, 2096; Pub. L. 117–169, title I, § 10101(a)(4)(C), Aug. 16, 2022, 136 Stat. 1822.)
## Editorial Notes
### Amendments
2022—Subsec. (d). substituted “the taxes imposed by subsection (a) and section 55” for “the tax imposed by subsection (a)”.
2017—Subsec. (b). , amended subsec. (b) generally. Prior to amendment, text read as follows:
“(1) .—The amount of the tax imposed by subsection (a) shall be the sum of—
“(A) 15 percent of so much of the taxable income as does not exceed $50,000,
“(B) 25 percent of so much of the taxable income as exceeds $50,000 but does not exceed $75,000,
“(C) 34 percent of so much of the taxable income as exceeds $75,000 but does not exceed $10,000,000, and
“(D) 35 percent of so much of the taxable income as exceeds $10,000,000.
In the case of a corporation which has taxable income in excess of $100,000 for any taxable year, the amount of tax determined under the preceding sentence for such taxable year shall be increased by the lesser of (i) 5 percent of such excess, or (ii) $11,750. In the case of a corporation which has taxable income in excess of $15,000,000, the amount of the tax determined under the foregoing provisions of this paragraph shall be increased by an additional amount equal to the lesser of (i) 3 percent of such excess, or (ii) $100,000.
“(2) .—Notwithstanding paragraph (1), the amount of the tax imposed by subsection (a) on the taxable income of a qualified personal service corporation (as defined in section 448(d)(2)) shall be equal to 35 percent of the taxable income.”
Subsec. (d). , substituted “the tax imposed by subsection (a)” for “the taxes imposed by subsection (a) and section 55”.
1993—Subsec. (b)(1). , inserted at end of closing provisions “In the case of a corporation which has taxable income in excess of $15,000,000, the amount of the tax determined under the foregoing provisions of this paragraph shall be increased by an additional amount equal to the lesser of (i) 3 percent of such excess, or (ii) $100,000.”
Subsec. (b)(1)(C), (D). , (2), added subpars. (C) and (D) and struck out former subpar. (C) which read as follows: “34 percent of so much of the taxable income as exceeds $75,000.”
Subsec. (b)(2). , substituted “35 percent” for “34 percent”.
1988—Subsec. (d). substituted “the taxes imposed by subsection (a) and section 55” for “the tax imposed by subsection (a)”.
1987—Subsec. (b). amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “The amount of the tax imposed by subsection (a) shall be the sum of—
“(1) 15 percent of so much of the taxable income as does not exceed $50,000,
“(2) 25 percent of so much of the taxable income as exceeds $50,000 but does not exceed $75,000, and
“(3) 34 percent of so much of the taxable income as exceeds $75,000.
In the case of a corporation which has taxable income in excess of $100,000 for any taxable year, the amount of tax determined under the preceding sentence for such taxable year shall be increased by the lesser of (A) 5 percent of such excess, or (B) $11,750.”
1986—Subsec. (b). amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “The amount of the tax imposed by subsection (a) shall be the sum of—
“(1) 15 percent (16 percent for taxable years beginning in 1982) of so much of the taxable income as does not exceed $25,000;
“(2) 18 percent (19 percent for taxable years beginning in 1982) of so much of the taxable income as exceeds $25,000 but does not exceed $50,000;
“(3) 30 percent of so much of the taxable income as exceeds $50,000 but does not exceed $75,000;
“(4) 40 percent of so much of the taxable income as exceeds $75,000 but does not exceed $100,000; plus
“(5) 46 percent of so much of the taxable income as exceeds $100,000.
In the case of a corporation with taxable income in excess of $1,000,000 for any taxable year, the amount of tax determined under the preceding sentence for such taxable year shall be increased by the lesser of (A) 5 percent of such excess, or (B) $20,250.”
1984—Subsec. (b). inserted “In the case of a corporation with taxable income in excess of $1,000,000 for any taxable year, the amount of tax determined under the preceding sentence for such taxable year shall be increased by the lesser of (A) 5 percent of such excess, or (B) $20,250.”
1981—Subsec. (b)(1). , substituted “15 percent (16 percent for taxable years beginning in 1982)” for “17 percent”.
Subsec. (b)(2). , substituted “18 percent (19 percent for taxable years beginning in 1982)” for “20 percent”.
1978— reduced corporate tax rates by substituting provisions imposing a five-step tax rate structure on corporate taxable income for provisions using a normal tax and surtax approach to the taxation of corporate taxable income.
1977—Subsec. (b)(1). , substituted “” for “”.
Subsec. (b)(2). , substituted “” for “” in provisions preceding subpar. (A).
Subsec. (d)(1). , substituted “” for “”.
Subsec. (d)(2). , substituted “” for “”.
1976—Subsec. (a). reenacted subsec. (a) without change.
Subsec. (b). , among other changes, substituted “, 22 percent” for “, 22 percent” and “after and before ” for “after and before ” and struck out provisions relating to the six-month application of the general rule.
Subsec. (c). struck out provisions relating to the special rule for 1976 for calendar year taxpayers.
Subsec. (d). , among other changes, substituted provisions relating to surtax exemption of $25,000 for a taxable year ending , or $50,000 for a taxable year ending after , and before , for provisions relating to surtax exemption of $50,000 for any taxable year and struck out provisions relating to six-month application of the general rule.
1975—Subsec. (b). redesignated existing pars. (1) and (2) as pars. (1)(A) and (1)(B), and in par. (1)(A) as so redesignated substituted “after ” for “before or after ”, and in par. (1)(B) as so redesignated substituted “” for “”, and added par. (2).
, reduced the normal tax for a taxable year ending after , and before , to 20 percent of so much of the taxable income as does not exceed $25,000 plus 22 percent of so much of the taxable income as exceeds $25,000.
Subsec. (c). designated existing provisions as par. (1), struck out special percentages for taxable years beginning before , and after and before , and added par. (2).
Subsec. (d). designated existing provisions as par. (1), substituted “$50,000” for “$25,000”, inserted reference to , and added par. (2).
, substituted “$50,000” for “$25,000”.
1969—Subsec. (d). substituted “section 1561 or 1564” for “section 1561”.
1966—Subsec. (e)(4). , struck out par. (4) which made reference to section 881(a) (relating to foreign corporations not engaged in business in United States).
Subsec. (f). , added subsec. (f).
1964—Subsec. (b). applied the 30 percent tax to years beginning before instead of in par. (1), and in par. (2), reduced the rate from 25 percent to 22 percent, and applied it to years beginning after , instead of .
Subsec. (c). increased the percentage from 22 to 28 for taxable years beginning after , and before , and to 26 percent for taxable years beginning after . The surtax exemption previously carried in subsec. (c), is now stated in subsec. (d).
Subsecs. (d), (e). added subsec. (d) and redesignated former subsec. (d) as (e).
1963—Subsec. (b). substituted “” for “” and “” for “” wherever appearing.
1962—Subsec. (b). substituted “” for “” and “” for “” wherever appearing.
1961—Subsec. (b). substituted “” for “” and “” for “” wherever appearing.
1960—Subsec. (b). substituted “” for “” and “” for “” wherever appearing.
Subsec. (d)(3). inserted “and real estate investment trusts” after “regulated investment companies”.
1959—Subsec. (b). substituted “” for “” and “” for “” wherever appearing.
1958—Subsec. (b). substituted “” for “” and “” for “” wherever appearing.
1957—Subsec. (b). substituted “” for “” and “” for “” wherever appearing.
1956—Subsec. (b). Act , substituted “” for “” and “” for “” wherever appearing.
1955—Subsec. (b). Act , substituted “” for “” and “” for “” wherever appearing.
## Statutory Notes and Related Subsidiaries
### Effective Date of 2022 Amendment
> “The amendments made by this section [enacting
>
> and amending this section and sections 12, 38, 53, 55, 59, 860E, 882, 897, 6425, and 6655 of this title] shall apply to taxable years beginning after
>
> .”
, , , provided that:
### Effective Date of 2017 Amendment
> “The amendments made by this section [amending this section and sections 12, 38, 53, 55, 56, 58, 59, 168, 847, 848, 882, 897, 911, 962, 1561, 6425, and 6655 of this title] shall apply to taxable years beginning after
>
> .”
, , , provided that:
> **“(1)** **In general.—** Except as otherwise provided in this subsection, the amendments made by subsections (a) and (b) [amending this section and sections 12, 280C, 453A, 527, 535, 594, 691, 801, 831, 832, 834, 852, 857, 860E, 882, 904, 1374, 1381, 1445, 1446, 1561, 6425, 6655, 7518, and 7874 of this title and repealing sections 1201 and 1551 of this title] shall apply to taxable years beginning after December 31, 2017.
>
> **“(2)** **Withholding.—** The amendments made by subsection (b)(3) [amending sections 1445 and 1446 of this title] shall apply to distributions made after December 31, 2017.
>
> **“(3)** **Certain transfers.—** The amendments made by subsection (b)(6) [amending section 1561 of this title] shall apply to transfers made after December 31, 2017.”
, , , provided that:
### Effective Date of 1993 Amendment
> “The amendments made by this section [amending this section and sections 852, 1201, and 1445 of this title] shall apply to taxable years beginning on or after
>
> ; except that the amendment made by subsection (c)(3) [amending
>
> ] shall take effect on the date of the enactment of this Act [
>
> ].”
, , , provided that:
### Effective Date of 1988 Amendment
Amendment by effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, , to which such amendment relates, see , set out as a note under .
### Effective Date of 1987 Amendment
> “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after
>
> .”
, , , provided that:
### Effective Date of 1986 Amendment
> **“(1)** **In general.—** The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning on or after July 1, 1987.
>
> **“(2)** **Cross reference.—** July 1, 1987
>
> “For treatment of taxable years which include , see section 15 of the Internal Revenue Code of 1986.”
, , , provided that:
### Effective Date of 1984 Amendment
> **“(1)** **In general.—** The amendments made by this section [amending this section and section 1561 of this title] shall apply to taxable years beginning after December 31, 1983.
>
> **“(2)** **Amendments not treated as changed in rate of tax.—** The amendments made by this subsection [probably should be “section”] shall not be treated as a change in a rate of tax for purposes of section 21 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954].”
, , , as amended by , , , provided that:
### Effective Date of 1981 Amendment
> “The amendments made by subsection (a) [amending this section] shall apply to taxable years beginning after
>
> .”
, , , provided that:
### Effective Date of 1978 Amendment
> “The amendments made by this section [amending this section and sections 12, 57, 244, 247, 511, 527, 528, 802, 821, 826, 852, 857, 882, 907, 922, 962, 1351, 1551, 1561, 6154, and 6655 of this title] shall apply to taxable years beginning after
>
> .”
, , , provided that:
### Effective Date of 1976 Amendment
> “The amendment made by subsection (a) [amending this section] shall take effect on
>
> . The amendments made by subsection (b) [amending
>
> ] shall apply to taxable years ending after
>
> . The amendments made by subsection (c) [amending sections 21, 1561, and 6154 of this title] shall apply to taxable years ending after
>
> .”
, , , provided that:
### Effective and Termination Dates of 1975 Amendment
> “The amendments made by subsections (b), (c), and (d) [amending this section and sections 21, 962, and 1561 of this title] apply to taxable years beginning after
>
> . The amendment made by subsection (c) [amending this section] ceases to apply for taxable years beginning after
>
> .”
, , , provided that:
> “The amendments made by section 303 [amending this section and sections 12, 962, and 1561 of this title and enacting provisions set out as a note under this section] shall apply to taxable years ending after
>
> . The amendments made by subsections (b) and (c) of such section [amending this section and sections 12, 962, and 1561 of this title and enacting provisions set out as a note under this section] shall cease to apply for taxable years ending after
>
> .”
, , , provided that:
### Effective Date of 1969 Amendment
Amendment by applicable with respect to taxable years beginning after , see , set out as a note under .
### Effective Date of 1966 Amendment
> “The amendments made by this section (other than subsection (k)) [enacting section 6683 to this title and amending this section and sections 245, 301, 512, 542, 543, 545, 819, 821, 822, 831, 832, 841, 842, 881, 882, 884, 952, 953, 1249, 1442, and 6016 of this title] shall apply with respect to taxable years beginning after
>
> . The amendment made by subsection (k) [amending
>
> ] shall apply with respect to sales or exchanges occurring after
>
> .”
, , , provided that:
### Effective Date of 1964 Amendment
Amendment by , except for purposes of , effective with respect to taxable years beginning after , see , set out as a note under .
### Effective Date of 1960 Amendment
Amendment by applicable with respect to taxable years of real estate investment trusts beginning after , see , set out as an Effective Date note under .
### Allocation of 1975 Taxable Income Among Component Members of Controlled Group of Corporations
> “In applying subsection (b)(2) of section 11 [former subsec. (b)(2) of this section], the first $25,000 of taxable income and the second $25,000 of taxable income shall each be allocated among the component members of a controlled group of corporations in the same manner as the surtax exemption is allocated.”
, , , provided in part that: