Self-Employment Tax Calculator
Estimate self-employment tax (Social Security + Medicare), federal income tax, and state tax as an independent contractor. Includes a side-by-side S-Corp comparison so you can see if electing S-Corp status would actually save you money.
Materials, tools, vehicle, insurance, etc.
W-2 wages, interest, etc.
0 if you live in TX, FL, NV, WA, etc.
SEP-IRA / Solo 401(k) — reduces taxable income
Your Tax Estimate (Sole Prop / Single-Member LLC)
Net Profit
$110,000
Schedule C
Self-Employment Tax
$15,543
SS + Medicare
Federal Income Tax
$14,104
2025 brackets
State Income Tax
$0
0% rate
Total Tax Owed
$29,647
27.0% effective
Take-Home Pay
$80,353
$6,696/month
Quarterly Payment
$7,412
Apr/Jun/Sep/Jan
Should You Elect S-Corp Status?
An S-Corp election can save self-employment tax once your net profit exceeds roughly $50K–$80K. You pay yourself a “reasonable salary” (subject to FICA), and the rest comes through as distributions that aren't subject to SE tax. The tradeoff: you owe payroll filings, an extra tax return (Form 1120-S), and roughly $1,500–$2,500/yr in extra admin.
IRS requires this match what you'd pay an employee doing your role — typically 40–60% of net profit. Too low triggers audits.
Sole Prop / LLC
| SE Tax | $15,543 |
| Federal Income Tax | $14,104 |
| State Tax | $0 |
| Take-Home | $80,353 |
S-Corp Election
| FICA on Salary | $9,180 |
| Federal Income Tax | $15,814 |
| State Tax | $0 |
| Extra Admin | $1,500 |
| Take-Home | $83,506 |
S-Corp wins by $3,153/year. At your income, electing S-Corp status would put roughly $3,153 extra in your pocket after admin costs. Talk to a CPA before filing Form 2553 — the salary must be defensible.
How to Use This Calculator
Enter your gross business income and deductible expenses. The calculator computes your sole-proprietor / single-member LLC tax bill using 2025 brackets, then runs a side-by-side S-Corp scenario based on the ‘reasonable salary’ you'd pay yourself. The S-Corp comparison estimates the FICA savings minus the extra admin cost so you know if the election is worth it.
Formula Used
SE Base = Net Profit × 92.35%. SE Tax = (12.4% Social Security up to $176,100 cap) + (2.9% Medicare). S-Corp FICA = 15.3% on W-2 salary only; distributions are NOT subject to SE tax. S-Corp Savings = Sole Prop Take-Home − S-Corp Take-Home − ~$1,500/yr admin overhead.
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Disclaimer
This calculator is for estimation purposes only. Results may vary based on local conditions, materials, and building codes. Always consult a licensed professional before making decisions based on these calculations. MyContractorTools is not responsible for any errors or omissions.