S-Corp Tax Savings Calculator
Enter your estimated annual net profit and see how much you could save with an S-Corp election versus standard LLC taxation.
Your business revenue minus all expenses (before taxes and owner salary)
Percentage of profit paid as W-2 salary (IRS requires "reasonable" — typically 40-60%)
Payroll service ($40/mo) + additional CPA fees ($500-$1500/yr)
LLC SE Tax (15.3%)
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S-Corp SE Tax (salary only)
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S-Corp Additional Costs
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Distribution (not SE taxed)
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Important: This is an estimate for educational purposes only. Actual savings depend on your specific tax situation, state taxes, deductions, and what the IRS considers a "reasonable salary" for your industry. Consult a CPA before making the S-Corp election. The 15.3% SE tax rate applies to the first $168,600 (2025); the rate drops to 2.9% above that threshold.