The U.S. federal corporate tax rate of 21% sits 2.1 percentage points below the OECD average of 23.1%. This places the U.S. in the middle tier of developed economies. Specifically, major competitors including Germany (30%), Canada (26.5%), France (25%), and the UK (25%) all impose higher statutory corporate income tax rates than the U.S. federal rate.Conversely, Ireland (12.5%), Singapore (17%), Hungary (9%), and the UAE (9%) maintain lower statutory rates.However, Pillar Two now requires these jurisdictions to collect top-up taxes on large multinational profits to reach the 15% minimum. Consequently, the U.S. federal business tax rate compares favorably at the federal level.The addition of state corporate taxes in high-rate states like Minnesota eliminates that advantage for corporations with significant multi-state operations.