Short answer: With $10,000 of monthly revenue and $3,500 of expenses, it's safe to pay yourself about $4,501 a month, after moving $1,349 a month into a tax account and keeping 10% in the business. That's before state income tax. You're taxed on profit, not on what you transfer (IRS). More in How to Pay Yourself From an LLC (and How Much Is Safe).
Check our math
Here is the result above, step by step, using the numbers already filled in.
- Yearly profit($10,000 − $3,500) × 12 = $78,000
- Self-employment tax$78,000 × 92.35% × 15.3% = $11,021 ($918/mo)
- Income after half of SE tax$78,000 − $5,511 = $72,489
- Standard deduction (single) and 20% business income deduction$72,489 − $16,100 − $11,278 = $45,112 taxable
- Federal income tax$5,165 ($430/mo)
- Kept in the business (10%)$78,000 × 10% = $7,800 ($650/mo)
- Safe yearly pay$78,000 − $16,186 − $7,800 = $54,014
- Safe monthly pay$54,014 ÷ 12 = $4,501
How this calculator works
In a sole proprietorship or single-member LLC, the money you move from the business account to your own is an owner's draw. It isn't a paycheck and isn't taxed when you take it. Instead you owe self-employment tax and income tax on the business's profit for the year, whether you take it out or not, and nobody withholds it for you.
So the safe amount to pay yourself is profit minus the taxes on it, minus a cushion for the business. The calculator works out 2026 self-employment tax (IRS: Self-employment tax (Social Security and Medicare taxes)), federal income tax with the standard deduction and the 20% business income deduction (IRS: 2026 tax inflation adjustments (brackets and standard deduction)), and your state's income tax from its 2026 brackets when you choose it. New York City residents can add the city's income tax.
The tax line tells you how much to move to a separate tax savings account each month. Pay it out as quarterly estimated taxes (IRS: Estimated taxes).
Safe monthly pay by monthly profit
| Monthly profit | Move to taxes each month | Tax rate | Safe monthly pay |
|---|---|---|---|
| $2,000 | $324 | 16% | $1,476 |
| $3,000 | $542 | 18% | $2,158 |
| $4,000 | $773 | 19% | $2,827 |
| $5,000 | $1,003 | 20% | $3,497 |
| $6,500 | $1,349 | 21% | $4,501 |
| $8,000 | $1,762 | 22% | $5,438 |
| $10,000 | $2,372 | 24% | $6,628 |
| $15,000 | $3,922 | 26% | $9,578 |
Single filer, no state income tax, 10% kept in the business, 2026 federal figures.
Worked examples
Single owner in California
$10,000 of revenue and $3,500 of expenses a month, with California income tax.
| Result | |
|---|---|
| Safe monthly pay | $4,273 |
| Move to taxes each month | $1,577 |
| Tax rate | 24% of profit |
Married owner in Texas
Same business, filing jointly, in a state with no income tax.
| Result | |
|---|---|
| Safe monthly pay | $4,651 |
| Move to taxes each month | $1,199 |
| Tax rate | 18% of profit |
Single owner living in New York City
Same business, with New York State and New York City income tax.
| Result | |
|---|---|
| Safe monthly pay | $4,027 |
| Move to taxes each month | $1,823 |
| Tax rate | 28% of profit |
Using your result
Set up two transfers on the same day each month: the tax amount into a savings account you don't touch, and your pay into your personal account. Leave the cushion in the business. When profit changes for a few months in a row, rerun the numbers and adjust both.
Pay the quarterly taxes from the tax account in April, June, September and January. If you end the year with money left in it, it can go toward next year's first payment.
If profit is high enough that self-employment tax hurts, check the S-corp tax calculator. With an S-corp you pay yourself a salary through payroll instead of draws.
What it doesn't cover
- It assumes the business is your only income. A spouse's wages or another job raise your bracket.
- State tax uses 2026 brackets before credits; married couples are estimated from single brackets.
- The business income deduction has extra limits for some service businesses at high incomes.
- Retirement contributions, health insurance and credits aren't included and can lower your tax.
Read more
- How to Pay Yourself From an LLC (and How Much Is Safe)
- S-Corp Reasonable Salary: How Much Should You Pay Yourself?
Frequently asked questions
How much should I pay myself from my LLC?
Your profit minus the taxes on it and a cushion for the business. With $6,500 of monthly profit, that's about $4,501 a month before state tax.
Is an owner's draw taxed?
Not when you take it. You're taxed on the business's profit for the year, whether you draw it or leave it in the business.
How much of my profit should I set aside for taxes?
About 21% of profit with the starting numbers, before state tax. Most owners land between 20% and 35% depending on profit and state.
Do I need to run payroll to pay myself?
Not as a sole proprietor or single-member LLC: you take draws. Payroll becomes required if the LLC elects S-corp taxes.
Does this include state income tax?
Yes, once you choose your state. It uses the state's 2026 brackets before credits; New York City residents can add the city's income tax.
What if my profit changes a lot from month to month?
Use an average of the last three to six months, pay yourself a steady amount from it, and let the cushion absorb the swings. Recalculate when the average moves.
How often should I pay myself?
Many owners pay themselves on the same day each month, after setting aside taxes. A steady amount makes your household budget easier than taking whatever is in the account.
Sources
- IRS: Single-member limited liability companies
- IRS: Self-employment tax (Social Security and Medicare taxes)
- IRS: Estimated taxes
- IRS: 2026 tax inflation adjustments (brackets and standard deduction)
Reviewed against IRS sources: October 2026 · Updated October 2026 · By the NetTakeHome team. Estimates for planning, not tax, legal or financial advice.