At a prime minister's questions, where the prime minister again struggled with her voice, keeping her answers brief, the Labour leader began by urging May to back Wednesday evening's motion seeking to rule out no deal, in place after her plan was rejected the previous night.
Corbyn added: "She needs now to show leadership".
"The prime minister's deal has failed, she no longer has the ability to lead", he said.
Another 18 Labour MPs voted against the amendment, highlighting the divisions in the Labour party.
Under a temporary scheme 87% of imports by value would be eligible for zero-tariff access - up from 80% at present.
According to a survey by Conservative Home, support for the beleaguered Prime Minister's Brexit deal has actually doubled among Tory party members. "In the last 24 hours Parliament has decisively rejected both her deal and no deal".
On Wednesday morning the government announced that most imports into the United Kingdom would not attract a tariff in the event of a no-deal Brexit.
Labour MP Jess Phillips said she would support a 21-month extension of the Article 50 oto prolong the withdrawal process.
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The decision to drop all checks to avoid friction at the UK's land border with the European Union will be temporary while longer term solutions are negotiated.
"You'd have to have a supermajority in the House of Commons or two no-confidence votes and I don't think either of those will happen", he said.
He told MPs: 'We either deliver on the result of the referendum, giving people and businesses across the country the certainty they're calling for and move on as a nation, or we enter into a sustained period of uncertainty during which time the government would work with this House to find a way through, but which I fear would do real damage to the public's faith in politics and trust in our democracy'.
He added the Commons needs to listen to the country, including workers and European Union nationals who are fearful for their futures, saying of Mrs May: "She needs now to show leadership". It wasn't as bad as the 230 vote defeat on January 16 - the biggest in British parliamentary history - but still pretty devastating.
Leading Tory Remainers and Brexiteers, including Dominic Grieve and Boris Johnson, have suggested the prime minister's deal is now "finished" and other options must be brought forward.
But Tory former minister Nick Boles said this would amount to a no-deal exit and the European Union would not agree to it.
He referenced the official People's Vote campaign, who have said they do not back the proposal tabled by Independent MP Sarah Wollaston.