If you’re self-employed and netting above $100,000, you may be overpaying in self-employment tax. Use this calculator to see if an S-Corp election for 2026 could put money back in your pocket.
Try the Calculator ↓Select your profession and adjust your annual net income to see your estimated savings.
As a sole proprietor, you pay 15.3% in self-employment tax (Social Security + Medicare) on all your net income. That adds up fast.
With an S-Corp, you pay yourself a reasonable salary (subject to payroll tax) and take remaining profit as distributions—which are not subject to self-employment tax.
After accounting for S-Corp costs (payroll, additional return, etc.) and the reduced Section 199A QBI deduction that comes with lower pass-through income, many business owners still save thousands per year.
Important: This calculator provides estimates for the 2026 tax year for educational purposes only. Actual savings depend on your specific situation, including state taxes, retirement plan contributions, and other factors. The QBI deduction estimate uses 2026 federal thresholds per Rev. Proc. 2025-32 and OBBBA provisions. “Reasonable salary” is determined by IRS guidelines based on industry, role, experience, and geography—not a fixed formula. Consult with a tax professional before making any entity election decisions.
A 30-minute conversation is all it takes. We’ll review your specific situation and give you a clear answer.
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