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A look at the wide range of corporate U.S. tax rates

June 8, 2014

The ability of some major U.S. corporations to avoid domestic taxes by setting up subsidiaries in offshore tax haven countries has gotten a lot of attention of late.

But not every company can pull that off.

A recent New York Times analysis found that for every Apple, with its 14 percent tax rate on $135 billion in earnings (that comes to a tax bill of just less than $19 billion), there's a KeyCorp, with its 150 percent effective tax rate on $1.33 billion in earnings, resulting in $1.99 billion taxes paid.

The newspaper put the corporate tax data into a nifty interactive tool. The bubbles in the image below give you an idea of the range of corporate taxes paid in the United States.

New York Times interactive look at corporate tax rates

Click on the image to go to the Times' website where you can take advantage of the various comparison options, such rolling over the bubbles for pop-up information or searching for a specific company or industry.

When the newspaper's researchers combined earnings and taxes for all S&P 500 companies, they found that the overall effective corporate tax rate was 29.1 percent. That's this week's By the Numbers figure.

Not all escape taxes: But, to paraphrase the popular saying, each company's tax mileage varies.

The differences are particularly notable in the hefty Internal Revenue Service bills paid by three big energy firms.

Exxon handed Uncle Sam $146 billion in taxes on the $395 billion it made, giving it a 37 percent effective tax rate.

Chevron's $85.5 billion tax bill on $220 billion in earnings resulted in a 39 percent tax rate.

And ConocoPhillips had a $58 billion tax bill on almost $79 billion in earnings, for an effective tax rate of 74 percent.

The disparities in the companies' tax situations make very clear the difficulties lawmakers face in trying to enact any type of corporate tax reform.

You also might find these items of interest:

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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