S corp tax calculator.
See what an S corp election could save on self-employment tax, after payroll costs and state tax, using your own profit and salary.
Before you elect.
The savings above are only part of the answer.
QBI deduction
Salary reduces qualified business income, which can lower the 20% QBI deduction.
Retirement limits
Solo 401(k) employer contributions are based on salary, so a low salary can cap them.
Timing
Form 2553 is due by March 15 for a calendar year. Late-election relief is often available.
About this calculator.
How is the savings worked out?
It compares self-employment tax on your profit as a sole proprietor or default LLC (15.3% on 92.35% of profit, with Social Security capped at the 2026 wage base of $184,500) with payroll tax on the salary you would pay yourself as an S corp, plus the extra costs and state entity tax you enter.
What does it leave out?
Income tax effects: the deduction for half of self-employment tax, the qualified business income deduction, retirement contribution limits, the additional 0.9% Medicare tax and state income tax. These can move the answer either way, which is why we model the full return before recommending an election.
What salary should I enter?
A reasonable salary: roughly what you would have to pay someone else to do your job. Setting it too low is the most common S corp audit issue.
Let’s check the whole return.
We will model the election with your income tax, QBI and retirement plans included, then handle the paperwork if it makes sense.