S-Corp Tax Calculator
An S-Corp can save you thousands in self-employment tax — but only if the numbers work. This calculator shows your exact savings after FICA, salary, distributions, and state taxes.
S-Corp Tax Savings Calculator
Estimate your total tax bill as a sole proprietorship vs. an S-Corp after FICA, salary, distributions, and state taxes
An S-Corp could save about $10,423.13/year, well above typical $1,000–$3,000/year compliance costs.
Disclaimer: Simplified model: employer FICA is deductible, state tax uses your effective rate (some states add S-Corp franchise taxes), federal uses 2026 brackets and ignores QBI, credits, and itemized deductions. The IRS requires a reasonable salary comparable to market wages. Consult a CPA before making an election.
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Frequently Asked Questions
How much can I save with S-Corp taxation?+
S-Corp saves you SE tax (15.3%) on distributions above your reasonable salary. Example: $200k net income, $100k salary → $100k in distributions avoids SE tax → saves about $15,300/year. But you're also paying yourself a salary, so the net savings is the SE tax on the distribution portion.
What is a reasonable salary for S-Corp?+
The IRS requires a "reasonable" salary based on your role, experience, and industry. Paying yourself $20k when you should earn $100k invites an audit. Most tax professionals recommend 40-60% of net income as salary. Too low = IRS risk. Too high = no SE tax savings.
When does S-Corp taxation stop making sense?+
Below $50-60k net income, S-Corp rarely saves enough to justify the extra costs: payroll processing ($500-1,500/year), additional tax return ($500-1,500/year), and state franchise fees. Above $80-100k net income, S-Corp savings usually outweigh the costs significantly.
How much can I save with S-Corp taxation?
S-Corp saves you SE tax (15.3%) on distributions above your reasonable salary. Example: $200k net income, $100k salary → $100k in distributions avoids SE tax → saves about $15,300/year. But you're also paying yourself a salary, so the net savings is the SE tax on the distribution portion.
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Self employment tax in 2026 is 15.3% of your net profit, split between Social Security and Medicare. But you don't owe it on gross income, and smart deductions can shrink it dramatically. Here is exactly how the math works, what the IRS lets you deduct, and how to legally pay less every quarter.
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