S-Corp Tax Savings Calculator
See how much you could save in self-employment taxes by electing S-corp status. Based on 2026 tax rates, all 50 states. Takes about 30 seconds.
Key Takeaways
- An S-corp election lets you split business income into a reasonable salary (subject to payroll tax) and distributions (not subject to self-employment tax).
- The math typically works once net profit clears about $50,000 to $80,000, after the cost of payroll, additional tax prep, and state fees ($1,000 to $3,000 a year).
- Reasonable compensation is what you would pay someone else to do your job. Setting it too low invites IRS scrutiny; setting it too high erases the savings.
- This calculator uses 2026 estimated federal brackets, the Social Security wage base of $176,100, and your state's top income-tax rate.
- An S-corp election does not change federal income tax on profits already in your pocket. The savings come from removing the self-employment tax on the distribution portion.
- Idaho residents pay a flat 5.3% on the same taxable income, so the federal model carries cleanly into Idaho. Other states layer in their own brackets.
Your Business Numbers
Not sure? A rough estimate works. Your CPA can refine it.
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$0 / year
The IRS requires a "reasonable salary." This is a conservative default; your CPA should confirm the right number.
Estimated Annual Tax Savings
$0
By splitting income between salary and distributions as an S-corp
| Sole Proprietor | S-Corp | |
|---|---|---|
| SE / Payroll tax ? | – | – |
| Federal income tax ? | – | – |
| State income tax (ID) | – | – |
| Estimated total tax | – | – |
| Estimated annual savings | – |
A note on this estimate: This calculator uses your inputs and standard 2026 tax rates. It does not account for all deductions, credits, or your specific state's progressive brackets. S-corp elections also carry administrative costs, typically $1,000–$3,000/year for payroll processing and additional filing fees. Your net savings should be weighed against those costs. A conversation with a CPA turns this estimate into a real number.
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