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S-Corp Tax Savings Calculator
See how much payroll tax you could save by electing S-Corp status. Compare the savings with the extra admin work.
Compares self-employment tax vs. payroll taxes on a reasonable salary plus distributions.
Estimate payroll-tax savings from an S-Corp split
Compare self-employment tax (sole prop/LLC) vs payroll taxes on an owner salary (S-Corp). This is a simplified estimate.
Tip: if you leave salary blank, we’ll use 60% of profit as a starting estimate. Then validate with the salary tool.
Payroll + extra tax prep can materially change the net benefit.
Get a complete S-Corp analysis
X1 models your full tax picture. S-Corp savings, QBI optimization, retirement contributions, and state-specific factors.
No credit card required to start
Assumptions and limits
- Compares sole proprietor/LLC self-employment tax to S-Corp payroll taxes on wages plus distributions.
- Uses Social Security wage-base limits and Additional Medicare thresholds for the 2026 payroll-tax year.
- Does not model income tax, state tax, QBI, or wage-base interactions with other W-2 jobs.
- Admin costs (payroll, tax prep, fees) are optional inputs. Real costs vary by provider and state.
Questions to ask your CPA
- At my income level, does S-Corp election make sense after accounting for all costs?
- How do I balance salary for payroll-tax savings vs. salary for QBI and other factors?
- What salary/distribution split would you defend for my role and time commitment?
- Should I wait until next year to elect, or file for late-election relief?
- How do state-specific S-Corp rules change the math?
Decision support
Decide if it’s worth the complexity
Use this estimate to decide if it’s worth doing a real analysis with your CPA.
What this tool is (and isn’t)
This calculator estimates payroll-tax differences between a sole prop/LLC and an S-Corp salary split. It does not replace a full tax projection, and it does not model income tax, state tax, or QBI.
Decision checklist
- Is the savings estimate still positive after admin costs?
- Is the salary defensible for the services performed?
- Would a salary change affect other parts of the return (QBI, retirement, etc.)?
- Do I know the election deadline and effective date I want?
Questions for your advisor
- What salary range would you defend for my role and hours?
- What are my true annual admin costs for payroll and compliance?
- Should we elect this year or next year based on timing?
