S corp salary calculator
Enter your profit and state. The table shows what an LLC taxed as an S corp costs a year at each salary, and the saving against a plain LLC.
$4,232 a year
saved against a plain LLC in California with a $40,000 salary, the site's default for $100,000 of profit. The lowest cost in the table is at $20,000, but the IRS expects a reasonable salary for the work.
California, 2026: $100,000 profit, single filer
| Salary | Of profit | S corp yearly cost | vs plain LLC |
|---|---|---|---|
| $20,000 | 20% | $20,137 | −$7,272 |
| $30,000 | 30% | $21,913 | −$5,496 |
| $40,000 default | 40% | $23,177 | −$4,232 |
| $50,000 | 50% | $24,859 | −$2,550 |
| $60,000 | 60% | $26,929 | −$480 |
| $70,000 | 70% | $29,000 | +$1,591 |
| $80,000 | 80% | $31,069 | +$3,660 |
| $100,000 | 100% | $33,437 | +$6,028 |
Why the lowest salary is not the answer
A lower salary means less Social Security and Medicare tax, so the table mostly favours a small salary. At high profits the QBI deduction's wage limit can make a larger salary cheaper. The IRS requires a reasonable salary for the work you do, judged by what the business would pay someone else for it. A salary set too low can be recharacterised, with back taxes and penalties. How to set a reasonable salary.