Find the exact dollar amount an S-Corp election would save — or cost — you, based on your real income, salary, and admin costs.
✓ 2026 SS Wage Base Built In✓ 100% Free✓ Private — Data Stays in Your Browser
⚠️ We are not accountants, and this isn't tax or legal advice. "Reasonable salary" for S-Corp purposes is a facts-and-circumstances IRS standard — not a fixed formula — and depends on your industry, role, and services actually performed. Use this tool to get directionally close, then talk to a CPA before you actually elect S-Corp status.
📖 New to S-Corps? Read the Full Guide
How the tax savings actually work, who it's for, and when it's not worth it
📅 Updated for 2026 tax figures: This calculator uses the 2026 Social Security wage base of $184,500 (up from $176,100 in 2025), per the Social Security Administration's official Contribution and Benefit Base. Self-employment and payroll tax rates (15.3% combined: 12.4% Social Security + 2.9% Medicare) are set by the IRS and unchanged from prior years. See the SSA's official wage base page →
Simple
Flat effective tax rate
Advanced
Includes employer payroll tax deduction
📋 Your Numbers
Enter your business income and assumptions
Business Income
22%
S-Corp Assumptions
💡 Advanced mode: the employer-paid half of payroll/SE tax is deductible against your pass-through income, slightly lowering true income tax owed. Applied to both sides for a fair comparison.
Electing S-Corp Status
$0
Total Annual Cost Comparison
Sole Proprietorship$0
S-Corporation$0
Tax (SE/Payroll + Income)
Admin/Friction Costs
⚠️ What this doesn't include: state unemployment insurance (SUTA), workers' comp, one-time LLC-to-S-Corp conversion costs, and any state-specific franchise/entity taxes. If those apply to you, add them into the admin cost fields above for a more accurate picture.