Three states have their own calculator, because the state rate alone would be wrong: Maryland (every county adds a local rate) · Indiana (all 92 counties charge one) · New York (a recapture applies above $107,650)

IRS · Form 2553 · Verified

S-Corp vs LLC Tax Calculator

A sole trader pays employment tax on all of the profit. An S-corp pays it only on the salary, and the rest comes out as a distribution. This compares the two on the salary you choose — and shows where the saving stops.

Prepared for the 2026 tax year.

The rules for the 2026 tax year are published during 2025 and 2026 — the adjusted figures first, the explaining publications as the year goes on — and the return they govern is filed in 2027.

Your result

Tax year 2026

Enter your profit and the salary you would set, then press Compare the two.

How each side is worked out

What comes next? The salary you set decides more than your payroll tax. It also caps what you can put into retirement on the corporate side. The SEP IRA Contribution Calculator gives the maximum contribution on that salary, and the rate the IRS actually applies.

Where these figures come from

Wage base: $184,500 ·
Maximum Social Security: $11,439 · SSA, for earnings in 2026
FICA, each side: 6.2% Social Security + 1.45% Medicare
Self-employment tax: 15.3% on 92.35% · IRC §1401, §1402(a)(12)
Additional Medicare: 0.9% · IRC §1401(b)(2) · one threshold per return
FUTA: 6.0% on $7,000, less the 5.4% credit → 0.6%
Reasonable compensation: Pub. 15 / Form 1120-S instructions — no figure published
Verified: 2 October 2026

S-Corp vs LLC Tax Calculator

Your result

Where these figures come from

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