S Corp Tax Savings Calculator (2026)
Enter your profit and a reasonable salary to see whether an S corp election would lower your total tax in 2026, after the cost of running payroll and filing a separate return.
After payroll tax, income tax, QBI and the added costs you entered.
| Breakdown | Default LLC | S corp |
|---|---|---|
| Self-employment / payroll tax | $16,955 | $9,180 |
| Additional Medicare tax | $0 | $0 |
| QBI deduction | $19,084 | $11,082 |
| Federal income tax | $11,506 | $14,122 |
| State income tax (est.) | $3,817 | $4,411 |
| Added S corp costs | — | $2,000 |
| Total | $32,279 | $29,714 |
2026 federal figures: standard deduction, Social Security wage base $184,500, §199A thresholds and phase-ins. State tax is a flat estimate on taxable income; some states (such as California and New York City) treat S corps differently. Doesn't model itemized deductions, credits, retirement contributions or reasonable-compensation risk. Educational estimate, not tax advice.
What the calculator does.
- Default LLC: self-employment tax at 15.3% on 92.35% of profit up to the $184,500 wage base, then income tax after half of SE tax, the standard deduction and QBI.
- S corp: employer and employee FICA on your salary, income tax on salary plus distributions, and QBI on distributions with your salary counting toward the W-2 wage limit.
- Both sides apply the 2026 §199A thresholds ($201,750 single, $403,500 joint) and phase-in ranges, including the specified service business rules.
Common questions
What salary should I enter?
A reasonable salary for the work you do: what you'd pay someone else for the same role. Many owners start from salary survey data. Entering an unrealistically low salary will overstate the savings.
Why does the answer change so much above $200,000?
Above the §199A threshold, the QBI deduction is limited to 50% of W-2 wages paid. A sole proprietor with no employees can lose it, while an S corp owner's own salary counts as wages.
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