S Corporation Tax Impact Tool

Enter your numbers to compare filing Schedule C as a sole proprietor against electing S corporation status. Every figure updates as you type.

Filing status Single Married filing jointly

Gross income outside the business ($)

Business revenue ($)

Business expenses ($)

Wages paid to other people ($)

Retirement contributions ($)

Reasonable compensation, your salary ($) S corporation only. It is wages to you, taxed as income and payroll.

State tax rate (%)

Enter your numbers above to see the difference.

An estimate for 2025, not advice. It leaves out the qualified business income deduction and the Additional Medicare Tax, both of which can move the answer, and it assumes the standard deduction. Reasonable compensation has to be defensible to the IRS — that is the part worth talking to us about.