Business Tax Rates - 2019
C Corporation Tax Rate
The Tax Cuts and Jobs Act of 2017 changed the top corporate tax rate from 35% to one flat rate of 21%. This rate will be effective for corporations whose tax year begins after January 1, 2018, and it is a permanent change.
Self-Employment Tax For Sole Proprietors
On Schedule SE for 2019, self-employment tax of 15.3% applies to earnings of up to $132,900. The 15.3% rate equals 12.4% for Social Security (6.2% employee share and 6.2% employer share) plus 2.9% for Medicare. If net earnings exceed $132,900, the 2.9% Medicare rate applies to the entire amount. One half of the self-employment tax may be claimed as an above-the-line deduction on Schedule 1 of Form 1040 (as an adjustment to gross income).