The 2017 tax reform legislation replaced the graduated corporate tax structure with a flat 21% corporate tax rate.
This new maximum tax rate for corporations is effective for tax years beginning after Dec. 31, 2017.
A corporation with a fiscal year, for example July 01, 2017 to June 30, 2018, will pay what is called a blended tax rate. They will not use the flat 21% tax rate for their entire fiscal year.
To calculate the blended tax rate, these corporations will: