S-Corporation Tax Savings Calculator
Compare self-employment tax on a sole proprietorship with payroll tax on an owner salary you choose.
Social Security wage bases follow the year you select. The QBI comparison stops at the taxable-income threshold.
Estimate
$8,484.33
- Sole proprietor self-employment tax
- $21,194.33
- S corporation employee and employer payroll tax
- $10,710.00
- Extra S corporation costs
- $2,000.00
- Employment-tax difference after those costs
- $8,484.33
- QBI deduction, sole proprietor
- $24,660.57
- QBI deduction, S corporation
- $11,709.00
- This estimate is calculated in your browser and is not sent to a server.
- Reasonable compensation is the salary you enter. This comparison does not decide what that salary should be.
- The QBI lines assume material participation and use the section 199A(i) minimum when active qualified business income is large enough.
Limits of this estimate
- The salary is your figure, not a reasonable-compensation determination.
- Above the QBI threshold, the wage limit is not calculated.
- This is educational information, not tax, legal, or accounting advice, and it does not file a return.