Transparent assumptions
The result shows which assumptions were used, including net earnings subject to self-employment tax, salary, distributions, admin costs, and break-even cost.
SCorpMath
Updated for 2026 assumptions
S-Corp Tax Savings Calculator
Estimate potential S-Corp tax savings by comparing self-employment tax under sole proprietor or LLC treatment with S-Corp salary and payroll tax assumptions before you talk to a tax professional.
Educational estimate only. SCorpMath does not provide tax, legal, accounting, payroll, or financial advice.
Example profit
$120K
Example salary
$70K
Rough result
$3.2K
What the estimate compares
- Sole proprietor or disregarded LLC self-employment tax.
- S-Corp salary payroll taxes and estimated distributions.
- Admin costs, break-even signal, and assumption warnings.
Example uses 2026 assumptions, $120,000 profit, $70,000 salary, and $3,000 admin costs. It is not a recommendation.
Rough result
$3,245
Estimated net difference after admin costs, based on your assumptions.
May be worth discussing
Assumptions used
- Net earnings subject to SE tax
- $110,820
- Estimated S-Corp salary
- $70,000
- Estimated distribution before admin costs
- $44,645
- Salary as share of profit
- 58.3%
- Break-even admin cost
- $6,245
This calculator provides a rough educational estimate only. It is not tax, legal, accounting, payroll, or financial advice. Actual results may vary based on your full tax return, reasonable compensation, state rules, QBI, deductions, payroll setup, and other facts.
Built-in guardrails
The calculator warns when salary assumptions are low relative to profit or when admin costs may outweigh the estimated payroll tax difference.
No stored tax data
The MVP calculator runs in your browser. Do not enter sensitive identifiers such as SSN, EIN, tax return data, or personal account information.
How it works
A focused LLC vs S-Corp tax calculator
SCorpMath is built for one early planning question: under the assumptions you enter, how different could the self-employment tax and S-Corp payroll tax picture look? It is intentionally narrower than tax software.
Step 1
Enter net business profit
Start with annual profit after ordinary business expenses, before owner salary. This keeps the estimate focused on the business income being compared.
Step 2
Choose salary and admin cost assumptions
Enter an estimated S-Corp shareholder-employee salary and expected annual admin costs such as payroll, bookkeeping, tax filing, and state compliance.
Step 3
Compare the rough tax difference
SCorpMath compares a simplified self-employment tax estimate with estimated S-Corp payroll taxes, then subtracts admin costs to show a rough net difference.
Calculator assumptions
What an LLC vs S-Corp tax calculator needs to know
A useful S-Corp tax savings estimate is not just one income input. The comparison changes when salary, W-2 wages, admin costs, and payroll tax treatment change.
For a Schedule C-focused version of the same planning question, use the Schedule C vs S-Corp tax calculator.
Net business profit
The calculator starts with profit after ordinary business expenses, before any S-Corp owner salary assumption.
S-Corp salary
Salary drives the S-Corp payroll tax estimate. SCorpMath does not determine whether the amount is reasonable.
Other W-2 wages
Other wages can use part of the Social Security wage base, changing both the baseline and S-Corp payroll tax estimate.
Admin costs
Payroll, bookkeeping, tax filing, state fees, and compliance costs are subtracted before showing a rough net difference.
Methodology
A simplified estimate, not a full tax return
SCorpMath compares a simplified Schedule SE-style self-employment tax estimate with an S-Corp salary and payroll tax estimate. It does not model complete federal income tax, state income tax, QBI, retirement contributions, accountable plans, shareholder basis, or Form 1120-S.
Is this S-Corp tax calculator tax advice?
No. SCorpMath provides a rough educational estimate based on assumptions you enter. It is not tax, legal, accounting, payroll, or financial advice.
Does an S-Corp always save self-employment tax?
No. S-Corp treatment can add payroll, bookkeeping, tax filing, and state compliance costs. Reasonable compensation and your full tax facts can materially change the outcome.
Does this calculator determine a reasonable salary?
No. Reasonable compensation depends on services performed, duties, time, training, experience, comparable pay, and other facts. Discuss salary assumptions with a qualified tax professional.
Is this an S-Corp income tax calculator?
Not exactly. SCorpMath focuses on the self-employment tax and payroll tax difference. It does not calculate complete federal income tax, state income tax, QBI, or a full business tax return.
Can I use this as an LLC vs S-Corp tax calculator?
You can use it for a rough comparison between default sole proprietor or disregarded LLC treatment and an S-Corp salary/distribution assumption. It does not decide whether S-Corp election is appropriate.
Is this an S-Corp vs LLC tax calculator?
It can model a simplified S-Corp vs LLC tax comparison when the LLC is otherwise treated like a sole proprietor or disregarded entity for federal tax purposes. Multi-member LLCs, partnerships, state rules, and special facts may require a different analysis.
Does the calculator include S-Corp payroll tax?
Yes. The S-Corp scenario estimates payroll taxes on the salary assumption you enter and can include employer payroll taxes as an economic cost.
What inputs matter most in an S-Corp tax savings calculator?
The biggest drivers are annual net business profit, shareholder-employee salary, other W-2 wages, filing status, employer payroll tax treatment, and annual admin costs such as payroll, bookkeeping, tax filing, and state compliance.
Why can admin costs erase estimated S-Corp savings?
An S-Corp can add payroll, bookkeeping, business return preparation, state filings, and other compliance costs. A rough gross payroll tax difference should be reduced by those expected costs before the result is discussed.
At what income is an S-Corp worth discussing?
There is no universal income threshold. S-Corp treatment may be worth discussing when expected profit is high enough that the rough payroll tax difference can exceed payroll, bookkeeping, tax filing, state, and compliance costs, but salary support and full tax facts still matter.
Limits
What this S-Corp tax calculator does not include
The calculator is designed for rough education and first-pass planning. It should not be used as a substitute for tax preparation, payroll advice, legal advice, or entity election advice.
- Complete federal income tax or state income tax.
- QBI deduction, retirement plans, health insurance, or accountable plans.
- State franchise, gross receipts, city, or payroll tax rules.
- Eligibility for S-Corp election or Form 2553 late election relief.
- A determination of reasonable compensation.
When S-Corp may not be worth it
A positive gross payroll tax difference is not the same as a good decision. S-Corp treatment may be less compelling when:
- Expected net profit is low relative to payroll and tax filing costs.
- A supportable salary would leave little or no distribution.
- State-level taxes or fees materially reduce the estimated benefit.
- The business owner does not want the added payroll and bookkeeping complexity.
More calculators
More calculators for self-employed business owners
Use narrower calculators to understand self-employment tax, 1099 vs W-2 employment taxes, and S-Corp payroll tax assumptions before relying on a broader S-Corp estimate.
View all calculatorsSchedule C vs S-Corp Tax Calculator
Run a rough sole proprietor to S-Corp tax projection with salary and admin cost assumptions.
Open Schedule C vs S-Corp calculatorSelf-Employment Tax Calculator
Estimate Social Security and Medicare self-employment tax before comparing an S-Corp scenario.
Open self-employment tax calculator1099 vs W-2 Tax Calculator
Compare rough 1099 self-employment tax with W-2 employee Social Security and Medicare tax.
Open 1099 vs W-2 tax calculatorS-Corp Payroll Tax Calculator
Understand how S-Corp salary payroll taxes affect the broader savings estimate.
Open S-Corp payroll tax calculatorState-specific costs
Check state rules before relying on a generic S-Corp estimate
California, Texas, Florida, New York, and Washington each change the LLC vs S-Corp analysis in different ways. Review state-specific costs and reporting rules before treating a calculator result as decision-ready.
Next step
Bring the estimate to a qualified tax professional.
SCorpMath can help you frame the question, but entity election and reasonable compensation decisions should be reviewed with a qualified CPA, EA, tax attorney, or payroll professional.