S-corp savings calculator by state
Would electing S-corp taxes for my LLC save money at my profit, salary and state?
How it works
- As a regular LLC or sole proprietor, self-employment tax (15.3%) applies to all profit.
- As an S-corp, you pay yourself a reasonable salary through payroll; Social Security and Medicare apply only to that salary.
- Subtract the S-corp's extra costs: payroll service, a separate tax return and any state or city S-corp tax.
- What's left is the yearly saving. Break-even is roughly your salary plus $15,000–$18,000 of profit.
Worked example
In California, with $120,000 of profit and a $55,000 salary, self-employment tax as an LLC would be about $16,955. As an S-corp, payroll taxes are about $8,457, payroll and tax prep about $1,600, and California's 1.5% tax adds about $87 beyond the $800 an LLC pays anyway. Net saving: about $6,811 a year. Break-even at this salary: about $72,000 of profit.
2026 figures used
| Figure | 2026 | Source |
|---|---|---|
| Self-employment tax | 15.3% | IRS: self-employment tax |
| Social Security wage base | $184,500 | 2026 Social Security wage base |
| Reasonable salary rule | Required before distributions | IRS: S corporation compensation |
| California S-corp tax | 1.5% of net income, $800 minimum | California FTB: S corporations |
| New York City | 8.85% General Corporation Tax on S-corps | NYC General Corporation Tax for S-corps (summary) |
Try it with your own numbers
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For planning, not tax advice. Check with a tax professional for your situation. Figures as of October 2026; updated each January. Source list: nettakehome.com/guides/2026-tax-numbers/