Free tool · United States
How much could an S-Corp save you?
Most US owners overpay self-employment tax. Enter your numbers below to see the difference — no email required.
S-Corp tax savings estimator
🇺🇸 US federal estimate$
$
Net business profit$160,000
The IRS requires S-Corp owners to pay themselves a "reasonable salary" (typically 40–60% of profit). Only this portion is taxed for Social Security & Medicare.
As a sole proprietor
$24,480
SE tax
As an S-Corp
$12,816
SE tax + costs
Estimated net savings
$11,664
per year, after typical S-Corp running costs
Estimate only — based on 2026 federal SE tax. Excludes state taxes and the QBI deduction. Not tax advice.