2026 . S-corp planning

S-Corp Salary vs Sole Prop Calculator

Estimate how much payroll tax an S-corp election could save versus paying self-employment tax on all of your profit.

Net business profit for 2026 ($)

Reasonable salary you would pay yourself ($)

Sole proprietor vs S-corp, 2026

Sole prop self-employment tax

S-corp payroll tax on salary

Estimated annual payroll-tax savings

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This is a planning estimate. An S-corp pays Social Security and Medicare tax only on a reasonable salary, while distributions above that salary avoid it. The IRS requires the salary to be reasonable for your work. Real savings are reduced by payroll service costs and a separate business return (often 1,000 to 2,000 dollars per year). The 2026 Social Security wage base is 184,500 dollars. Estimates only, not tax advice. Phone 689-331-5723.