Free tool. No signup required.
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.
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.
Your financial life goes beyond this result.
X1 brings your accounts, businesses, properties, and professional work into one household picture. Start with what matters to you.
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?
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.
Before your next conversation
- 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 to bring to your professional
- 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?