Is an S corp worth it? The answer by profit and state (2026)
An S corp election saves Social Security and Medicare tax on the profit above your salary, and costs money to run. Whether it pays depends on profit, the salary you take and your state. The table shows the middle-state saving at each profit level.
| Profit | States where it pays | Middle-state saving | Texas |
|---|---|---|---|
| $40,000 | 1 of 51 | $0 | −$1,208 |
| $50,000 | 32 of 51 | $140 | $137 |
| $60,000 | 50 of 51 | $1,482 | $1,482 |
| $75,000 | 51 of 51 | $3,426 | $3,500 |
| $100,000 | 51 of 51 | $4,561 | $4,536 |
| $125,000 | 51 of 51 | $5,947 | $5,921 |
| $150,000 | 51 of 51 | $7,437 | $7,210 |
| $200,000 | 51 of 51 | $10,089 | $9,706 |
| $250,000 | 51 of 51 | $9,911 | $9,310 |
| $300,000 | 51 of 51 | $19,220 | $18,780 |
Default salary (40% of profit, at least $30,000 where profit allows), single filer, $1,800 a year of payroll and return costs.