S-Corp Tax Calculator for 2026
Free S-Corp Tax Calculator: Estimate Your Savings in 60 Seconds
This S-corp tax calculator shows how much you could potentially save by electing S-Corporation status. Enter your business income, set a reasonable salary, and see your estimated annual savings. Depending on income level and state, savings typically range from $3,000-15,000 per year after compliance costs.
📚 New to S-Corps? Start with our Complete S-Corporation Tax Guide | LLC vs S-Corp Comparison
Calculate Your Potential Savings
Your business profit before owner compensation
State taxes, fees, and PTET elections significantly impact your savings
Industry affects reasonable salary requirements
Typical range: 30-50% of net income based on industry and role
⚠️ IRS requires reasonable compensation. Too low = audit risk.
This affects Social Security tax calculations
Your Estimated Tax Comparison*
⚠️ S-Corp Tax Calculator Disclaimer
This s-corp tax calculator provides general estimates only. Actual tax savings vary based on IRS S-Corporation requirements, reasonable compensation, state taxes, and your specific situation. Results are for educational purposes. Always consult a qualified CPA before making Form 2553 election decisions.
Personalized Analysis
Calculations tailored to your specific income level and industry
Reasonable Salary
Estimates based on IRS guidelines and industry standards
Complete Picture
Includes additional S-Corp costs for realistic comparison
State Considerations
Factors in state tax implications for your location
How This S-Corp Tax Calculator Works
This s-corp tax calculator compares your current LLC/sole proprietorship tax burden against projected S-Corporation taxes. The math is straightforward:
- LLC Self-Employment Tax: 15.3% on all net income (that’s $15,300 on every $100,000)
- Reasonable Salary: What you’d pay someone else to do your job (typically 30-50% of income)
- S-Corp Payroll Taxes: 15.3% only on your W-2 wages, not distributions
- Additional Costs: Payroll service, tax prep, Form 1120-S filing (~$3,500/year)
- State Factors: PTET elections and state fees vary by location
Want to understand the full picture? Our Complete S-Corporation Tax Guide covers everything from how to convert your LLC to health insurance deductions.
LLC vs S-Corp: Break-Even Analysis
See how savings change at different income levels (assumes 40% reasonable salary)
| Net Income | LLC Tax Cost | S-Corp Tax | S-Corp Costs | Net Savings |
|---|---|---|---|---|
| $50,000 | $7,065 | $3,060 | $3,500 | -$505 |
| $75,000 ✓ | $10,597 | $4,590 | $3,500 | +$2,507 |
| $100,000 | $14,130 | $6,120 | $3,500 | +$4,510 |
| $150,000 | $19,420 | $9,180 | $3,500 | +$6,740 |
| $200,000 | $22,952 | $12,240 | $3,500 | +$7,212 |
| $300,000 | $26,775 | $15,147 | $4,000 | +$7,628 |
📊 Key Insight: The $75,000 income mark is typically the break-even point where S-Corp tax savings exceed additional costs. Your specific break-even depends on reasonable salary, state taxes, and business expenses.
When Does S-Corp Election Make Sense?
S-Corp status isn’t right for every business. Here’s when it typically makes sense:
- Net income over $75,000: Below this, compliance costs eat your savings
- Stable, predictable income: Not ideal for highly variable businesses
- You can justify reasonable compensation: IRS watches this closely
- You’re okay with payroll: Running payroll is non-negotiable for S-Corps
- You don’t need the flexibility of LLC: Some investors and situations require LLC structure
Not sure? Our complete LLC vs S-Corp comparison walks through the decision in detail. Or schedule a free consultation for personalized guidance.
S-Corp Tax Calculator: Frequently Asked Questions
How accurate is this S-corp tax calculator?
This S-corp tax calculator provides estimates based on 2026 federal tax rates (15.3% self-employment tax, $176,100 Social Security wage base) and typical compliance costs of $3,500-5,000/year. Actual savings depend on your state taxes, reasonable salary determination, and individual circumstances. Use these numbers as a starting point for discussion with a CPA, not a final answer.
What is reasonable salary for S-Corp owners?
Reasonable salary is what you’d pay someone else to do your job. The IRS considers your duties, experience, hours worked, and comparable wages in your industry. S-Corp owners typically pay 30-50% of net income as salary. Setting salary too low increases audit risk. Setting it too high reduces your tax savings. Our complete reasonable compensation guide explains how to document and support your salary determination.
At what income should I consider S-Corp?
$75,000-80,000 net income is the typical break-even point. Below this, S-Corp compliance costs ($3,500-5,000/year for payroll, tax prep, and state fees) often exceed your tax savings. At $100,000 net income, expect $4,000-6,000 in annual savings after costs. See our LLC vs S-Corp comparison for detailed break-even analysis.
What are the annual costs of running an S-Corp?
Expect $3,500-5,000 per year in additional costs: payroll service ($600-1,800), Form 1120-S tax preparation ($800-2,000), state fees ($100-800), and quarterly payroll filings. Some states charge additional franchise taxes or S-Corp fees. Learn more about S-Corp filing requirements.
Does S-Corp affect my QBI deduction?
Yes. The 20% QBI deduction (Section 199A) is calculated on your S-Corp income after W-2 wages. A lower salary means more QBI deduction. But salary affects other factors too. For high earners (over $232,100 single / $464,200 married), W-2 wages become a limiting factor. S-Corp optimization requires balancing these competing factors.
How do I convert my LLC to S-Corp?
File IRS Form 2553 by March 15 for current-year election (or within 75 days of forming your LLC). Your LLC stays an LLC legally but gets taxed as an S-Corp. No state filing changes needed in most states. Our LLC to S-Corp conversion guide walks through the process step by step.
Can I take health insurance as an S-Corp?
Yes, with specific rules. S-Corp pays or reimburses your premiums. The amount gets added to your W-2 Box 1 (but not Boxes 3 or 5). You then deduct it on your personal return Line 16. Net effect: pre-tax treatment for health insurance. See our S-Corp health insurance rules for W-2 reporting details.
Get Professional S-Corp Analysis
Ready for a detailed analysis of your specific situation? Our CPAs can provide personalized guidance on S-Corporation election and tax optimization strategies.
Schedule Professional ConsultationS-Corp Tax Calculator Limitations
This s-corp tax calculator makes several assumptions that may not apply to your situation:
- Assumes single owner (multiple owners affect calculations)
- Uses industry averages for reasonable salary per IRS guidelines
- Estimates typical S-Corp costs (actual vary by provider and state)
- Doesn’t account for all state-specific rules or QBI deduction complexities
- Excludes impact of other W-2 income sources
- Doesn’t calculate federal/state income tax effects
This s-corp tax calculator provides hypothetical estimates that may not reflect your actual tax situation. Tax laws change frequently. Professional consultation is essential for accurate analysis.
More S-Corp Resources
Get the complete picture with our S-Corporation article series:
- Complete S-Corporation Tax Guide – Everything you need to know about S-Corp taxation
- LLC vs S-Corp Comparison – Detailed breakdown of when each structure makes sense
- Reasonable Compensation Guide – How to set and defend your S-Corp salary
- Converting LLC to S-Corp – Step-by-step Form 2553 process
- S-Corp Deadlines & Filing – Key dates and compliance requirements
- How to Start an S-Corp – Formation process from scratch