Self-Employment Tax Intelligence
S-Corp Tax Savings & Reasonable Salary Calculator
Real-time 2025 IRS estimates — see your FICA savings instantly
15.3% SE Tax Rate
$176,100 2025 SS Wage Base
2025 IRS Rates
Step 1 — Net Business Profit
A
Expected Annual Net Profit
Before any owner compensation — your business's net income for the year
Enter your net profit before paying yourself. Typically your Schedule C net profit. Do not include personal salary here.
Step 2 — Reasonable Salary Percentage
B
Reasonable Salary as % of Net Profit
The IRS requires S-Corp owner-employees to pay themselves a reasonable market salary
50%
of net profit
$60,000
annual W-2 salary
30% (min)
100% (all profit as salary)
IRS Guidance: The IRS requires S-Corp owner-employees to receive reasonable
compensation comparable to what you'd pay a third-party for the same work.
Setting salary too low is a major audit red flag. Many CPAs suggest 40–60%.
Sole Prop / LLC
Single-Member LLC
Total FICA / SE Tax
$—
Taxable SE Earnings—
SS Tax (12.4%)—
Medicare (2.9%)—
SE Deduction—
S-Corporation
S-Corp Election
Total FICA (Employer + Employee)
$—
W-2 Salary—
Owner Distribution—
FICA on Salary Only—
Distribution FICA$0 ✓
Full S-Corp Tax Breakdown
2025 IRS rates applied — amounts in USD
Net Business Profit—
S-Corp W-2 Salary 50%
—
Owner Distribution (FICA-free)—
SS Tax on Salary (12.4% × employer + employee)—
Medicare Tax on Salary (2.9%)—
S-Corp Total FICA—
Sole Prop / LLC SE Tax—
Your Estimated FICA Savings
—
FICA Tax Comparison: LLC vs. S-Corp
Visual breakdown — amounts in USD
⚠ Disclaimer: FICA savings estimate only. Does not account for income taxes, QBI deductions, or state S-Corp fees. Not legal or tax advice. Consult a CPA.