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 Reasonable Salary Calculator
Determine the optimal salary/distribution split for your S-Corp to minimize FICA taxes
Disclaimer: Reasonable salary is based on industry benchmarks. The IRS requires S-Corp owners to pay themselves a reasonable salary before taking distributions. Industry multipliers are estimates — actual reasonable compensation depends on duties, experience, location, and comparable salaries. Consult a tax professional for your specific situation.
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.