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Would an S-corp election save you taxes?

Enter your profit and a reasonable salary. We compare the self-employment tax you pay now with the payroll tax you would pay as an S-corp.

Your business

01 / NUMBERS
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Reasonable salary = what you would pay someone else to do your job. The IRS scrutinizes low salaries in S-corps — a common guideline is 40–60% of profit, but it depends on your role and industry.

Distributions (profit − salary)$0

Details

02 / CONTEXT
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Payroll service, extra tax filings, and bookkeeping usually run about $1,500–$3,000 a year.

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Is the S-corp election worth it?

Enter your annual profit and a reasonable salary to see the estimated payroll-tax difference.

Last reviewed: October 2026.

What’s next?

Honed Money provides calculators and educational information for general purposes only. It is not financial, tax, legal, investment, or insurance advice. Estimates are based on the information you enter and the assumptions shown. Actual results will vary. For taxes, retirement, and government benefits, verify with IRS.gov, SSA.gov, or VA.gov. We don’t sell financial products and aren’t paid for calculator results. Use at your own risk.