Business Income Tax Calculator

Compare federal tax across entity types: sole proprietor, single-member LLC, S-Corp, and C-Corp. Models SE tax, payroll tax, the 20% QBI pass-through deduction (Section 199A), 21% corporate tax and qualified dividend tax.

Gross business revenue

Total receipts before any deductions.

Deductible business expenses

Cost of goods, supplies, contractors, rent, etc. (excludes owner salary for S-Corp / C-Corp — set below).

Net business income

$170,000

SE / Payroll tax

$24,020

QBI deduction (20%)

$31,598

Federal income tax

$19,068

Total federal tax

$43,088

Effective rate

25.35%

Quarterly estimate

$10,772

Owner take-home

$126,912

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SE Social Security capped at $184,500 (2026). QBI 20% applies to qualified pass-through income (no phaseout modeled). C-Corp uses flat 21%; distributed dividends taxed again at owner level (qualified dividend rate assumed 15%). State tax not included.

Entity comparison at these inputs

Same revenue and expenses across all four structures. S-Corp has the lowest total federal tax.

Entity	SE / Payroll	Income tax	Corporate	Dividend	Total federal	Take-home
Sole Prop	$24,020	$19,068	—	—	$43,088	$126,912
Single-member LLC	$24,020	$19,068	—	—	$43,088	$126,912
S-Corp	$12,240	$24,039	—	—	$36,279	$133,721
C-Corp	$0	$0	$35,700	$10,073	$45,773	$124,228

Sole Prop / Single-member LLC

Pass-through. All net profit hits Schedule C and is subject to full 15.3% SE tax. Eligible for the 20% QBI deduction.

S-Corp

Owner takes a reasonable W-2 salary (FICA applies); remaining profit flows through with no SE tax — the classic self-employment-tax savings play. QBI applies to non-salary profit.

C-Corp

Profits taxed at flat 21% at the entity, then again at the owner's level when distributed as dividends — the "double taxation" trade-off.

Quarterly estimated tax

Most small-business owners must pay estimated tax quarterly (Apr 15, Jun 15, Sep 15, Jan 15). The estimate above splits the annual federal liability into four equal payments.