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SE vs S-Corp

Compare self-employment tax with an S-Corp salary and distribution mix.

Tax year
Filing status
The total money you bring in from your business before taking out any expenses.
Under IRS rules, a business expense must be both:
Ordinary — common and accepted in your industry
Necessary — helpful and appropriate for your business

These expenses must be directly related to operating your business and must NOT be personal in nature.
Enter the amount you would pay yourself as a reasonable salary if you were taxed as an S-Corporation.

Pro-Tip: Think about the amount it would cost to hire someone to do the work you perform.

S-Corp payroll tax applies to salary. Remaining profit can be taken as a distribution.

Important disclaimers

  • This calculator is provided for informational and educational purposes only and does not constitute tax, legal, accounting, or financial advice.
  • Results are estimates based solely on the information entered and assumptions used by the calculator. Actual tax savings and liabilities may vary.
  • This calculator does not determine whether an S-Corporation election is appropriate or available for your specific situation. Eligibility, reasonable compensation, deductions, credits, and other tax considerations may materially affect the results.
  • Certain states and localities impose additional taxes, fees, or filing requirements on S-Corporations, including but not limited to CA, NH, NYC, Portland, and Philadelphia.
  • Additional costs should be considered when evaluating an S-Corporation, including formation/election costs, payroll, bookkeeping, tax preparation, advisory services, and state or local filing fees.

What's Next?

Key Notes

  • Review your projections with a qualified tax advisor to confirm this election makes sense for your situation.
  • An S-Corp election is not a DIY move — proper structuring and compliance require experienced professional guidance.
  • These figures are estimates only, based on the information you entered.

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