S Corporation Tax Calculator
Enter business income and the owner W-2 salary to see the salary, distribution, payroll tax, federal income tax, qualified business income deduction, and supported state tax in one breakdown. Turn on comparison mode to run the same income through three entity treatments.
Estimate federal, state, and entity tax
The calculator uses federal figures for the selected year and the confirmed state rule shown in the result. Every tax component stays visible so you can follow the estimate.
Salary carries payroll tax, while the remaining profit is a distribution.
Salary and distribution split
This scenario treats $0 as salary and $0 as distribution. The calculator does not decide whether a salary is reasonable.
| Gross household income in the estimate | $0 |
| Standard deduction | -$16,100 |
| Federal taxable income | $0 |
| State income tax estimate | $0 |
| Estimated total tax | $0 |
| Effective rate | 0% |
Entity comparison
When no owner wage is entered, the comparison uses 50 percent of business income as the salary assumption for the corporation views. Change the wage field to test a different assumption.
| Treatment | Income tax | Employment tax | Corporate and dividend tax | Total |
|---|---|---|---|---|
| Sole proprietor or single member LLC | $0 | $0 | $0 | $0 |
| S corporation | $0 | $0 | $0 | $0 |
| C corporation | $0 | $0 | $0 | $0 |
Method notes
Tennessee has no state income tax on earned income. The Hall income tax was repealed beginning in 2021.
The estimate applies the 20 percent deduction below the threshold, includes the 2026 minimum deduction when qualified business income is at least $1,000, then phases the calculated deduction across the published range. Actual limits depend on material participation, business type, wages, property, and other facts.
The dividend layer uses a 15 percent planning rate. The actual rate can be 0 percent, 15 percent, or 20 percent, and other taxes can apply.
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Use this result with the bookkeeping by industry guides and software comparisons that fit your business. GlacialBooks features explain how the underlying records stay current, and current pricing shows the path from a free tool into the product.
Salary and distribution
The entered salary carries combined employer and employee payroll tax in this planning view. Business income above that salary is shown as an S corporation distribution. The calculator does not decide whether the salary is reasonable, since that depends on the work and facts.
What the estimate leaves out
The result does not include credits, alternative minimum tax, net investment income tax, every state adjustment, local income tax, retirement contributions, health insurance deductions, losses, basis limits, or every qualified business income limitation. Those omissions are shown near the result rather than hidden.
Data that can be audited
Federal brackets, deductions, Social Security wage base, Medicare thresholds, qualified business income thresholds, and corporation rates live in a versioned file with official sources and review dates. State rules live in a separate versioned file, and an unavailable state is excluded instead of filled with a guessed rate.
Frequently asked questions
Is the lowest entity total always the best choice?
No. Entity choice also affects legal administration, payroll, benefits, financing, state filings, reasonable compensation, and how money moves to owners.
How does the S corporation view treat salary?
The entered owner wage carries combined payroll tax. Remaining business income is shown as a distribution that does not carry self employment tax in this planning model.
Is the qualified business income deduction always 20 percent?
No. The deduction is subject to taxable income, business type, wage and property limits, and published phaseout ranges. This estimator shows its planning method and can be lower than 20 percent.
Sources
Reviewed 2026-07-18.
Related guidance
Sole proprietor versus S corporation benchmark
Review modeled federal tax at several income levels before changing the assumptions.
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