Free tools / S Corp Tax Savings Calculator
Free toolS Corp Tax Savings Calculator
If your business makes a solid profit, electing S corp status can cut your total tax. Compare a standard LLC with an S corp using 2026 federal rates, including the Section 199A (QBI) deduction.
Example: $100k profit, $50k salary, married
Estimates for general information only, not tax advice. Your actual numbers depend on your full situation.
Estimated yearly savings
$0
Standard LLC
S corporation
Keep in mind: an S corp costs more to run than a standard LLC (payroll service, a separate business tax return, state fees and state unemployment tax). The savings shown are before those costs.
Talk to us about an S corp →What this calculator counts
Standard LLC: 15.3% self-employment tax on 92.35% of profit (Social Security up to the 2026 wage base of $184,500, Medicare on all of it, plus the 0.9% additional Medicare tax above $200,000 single / $250,000 joint). Half of the self-employment tax is deducted before income tax.
S corp: employee and employer Social Security and Medicare on your salary only, the 0.9% additional Medicare tax where it applies, and federal unemployment tax (FUTA) on the first $7,000. The employer share is deducted from the business profit that passes through to you.
Section 199A (QBI) deduction: up to 20% of qualified business income, limited to 20% of taxable income. In an S corp your salary is not QBI, so the deduction is usually smaller. Above $201,775 taxable income ($403,550 joint) the deduction is limited by W-2 wages, and for professional service businesses it phases out over the next $75,000 ($150,000 joint).
Federal income tax uses 2026 brackets and the standard deduction. Not included: the extra cost of running an S corp, itemized deductions, credits, health insurance and retirement contributions, and state income tax. Washington has no personal income tax, but other states treat S corps differently.
Three steps, about a minute
Swipe to see more →
Enter your profit
Use your expected net profit for the year, after business expenses.
Set a reasonable salary
What you'd pay someone else to do your job. The IRS expects it to be realistic.
Compare the totals
See total federal tax as a standard LLC and as an S corp, side by side.
What counts as a reasonable salary?
Roughly what you would pay someone else to do the work you do, based on your duties, hours, experience and industry. Setting it too low to save payroll tax is a common audit trigger, so we help clients set and document a defensible number.
When do I have to elect S corp status?
File Form 2553 within 2 months and 15 days of the start of the tax year you want it to apply to. For most businesses that means by March 15. If you missed it, the IRS often grants late election relief, and we can file for it.
Do I need to form a new company?
No. Your existing LLC simply elects to be taxed as an S corporation. It keeps the same name, EIN and liability protection; only the way it's taxed changes.
Why does the QBI deduction get smaller with an S corp?
The Section 199A deduction is 20% of qualified business income, and the salary you pay yourself is not QBI. So moving profit into salary trims the deduction a little. The calculator includes this.
Want a full S corp analysis, including your state, health insurance and retirement plan? That's part of our tax planning.
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Open tool →Ready to get started?
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