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S Corp Tax Savings Calculator

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  • S Corp Tax Savings Calculator

Would electing S corp status save your LLC money in 2026? Enter your profit and a reasonable salary to compare self-employment tax with S corp payroll tax, after your extra costs.

Example values are filled in. Change them to match your business.

$
Income minus business expenses, before paying yourself.
$
What a business would pay someone else to do your job. The IRS requires this before owner payouts.
$
Your estimate for a payroll service and Form 1120-S preparation.
$
Used for the New Jersey S corporation minimum tax ($375 to $1,500 a year).

Estimated yearly difference

Payroll tax only, using 2026 rates. Income tax is not included.

Self-employment tax as an LLC on $100,000 profit$14,130
Payroll tax on a $60,000 S corp salary$9,180
Gross payroll tax difference$4,950
Your extra S corp costs-$1,500
New Jersey S corp minimum tax-$563
Estimated net difference$2,887

After your costs, the estimated saving is about $2,887 a year. Worth a closer look.

  • Your QBI deduction usually gets smaller, because your salary isn’t qualified business income. That can offset part of the saving.
  • Unemployment taxes on your salary and the 0.9% Additional Medicare Tax on high earnings aren’t included.
  • To be an S corp from January 1, 2027, file Form 2553 by March 15, 2027.
Get a free review of your numbersGet a free review of your numbersHow the math works

How this calculator works

  • As an LLC, self-employment tax applies to 92.35% of your profit: 12.4% Social Security up to the 2026 wage base, plus 2.9% Medicare.
  • As an S corp, you pay yourself a reasonable salary through payroll. The salary carries the same 15.3% payroll tax, split between you and the business. Profit left over isn’t subject to self-employment tax.
  • Costs include payroll and the separate Form 1120-S return. In New Jersey, S corps also pay a yearly minimum tax based on New Jersey gross receipts.

The salary must be reasonable for the work you do, so a very low salary can backfire. Read our guide to LLC vs S corp taxes for a worked example, and our Form 2553 guide for how and when to elect.

Sources

An estimate for planning, not tax advice. Asquaire Financials is not a CPA firm.