About the LLC Tax Calculator
This LLC tax calculator estimates the federal taxes a single-member LLC owner pays for tax year 2026. By default the IRS treats a single-member LLC as a “disregarded entity”: the LLC itself pays no federal income tax, and its profit flows onto the owner’s Schedule C, where it is subject to 15.3% self-employment tax and to ordinary income tax at the owner’s bracket, less the 20% qualified business income (QBI) deduction.
Enter your LLC’s revenue and expenses, any W-2 wages you earn elsewhere and your filing status. The calculator applies the 2026 Social Security wage base of $184,500, the 0.9% Additional Medicare Tax, the deduction for half of SE tax, the QBI deduction (including the SSTB phase-out for service businesses) and the 2026 brackets and standard deduction from IRS Rev. Proc. 2025-32.
Because many owners ask whether electing S corporation status would save money, the calculator also runs the same profit through an S corp: you pay yourself a reasonable salary subject to payroll tax, and the rest flows through free of SE tax. Enter a salary you could defend as reasonable for your role and the extra annual cost of payroll and a corporate return. State income taxes, state LLC fees and franchise taxes are not included.
With the default inputs, the total federal tax on llc profit is $28,461.78. Change any value above to recalculate instantly.
How to use the llc tax calculator
- 1Choose your filing status.
- 2Enter the LLC’s yearly revenue and deductible business expenses.
- 3Add any W-2 wages you earn elsewhere so the brackets and Social Security cap are right.
- 4Turn on SSTB if your LLC provides professional services like consulting, law or health care.
- 5Enter a reasonable salary and extra costs to test an S-corp election.
- 6Compare total tax under both options and set aside the quarterly amount.
Formula and method
For a disregarded single-member LLC, net profit P is subject to self-employment tax: 12.4% Social Security on 92.35% of profit up to the $184,500 wage base (reduced by other W-2 wages), 2.9% Medicare on all of it and 0.9% Additional Medicare above $200,000 ($250,000 joint). Half of the 15.3% part is deducted, then the 2026 standard deduction D and the QBI deduction (20% of profit after that half, capped at 20% of taxable income and phased out above $201,750 / $403,500, fully for SSTBs) are subtracted. The income tax shown is the extra tax your profit adds on top of your wages.
In the S-corp comparison, salary S bears 15.3% payroll tax (employer and employee halves, Social Security capped), the employer half is deductible by the corporation, and the remaining profit less extra costs passes through on a K-1 without SE tax. The QBI deduction uses the K-1 profit with the salary counting as W-2 wages for the wage limit.
- P
- LLC net profit (revenue − expenses)
- W
- W-2 wages from other jobs
- D
- 2026 standard deduction for your filing status
- QBI
- Section 199A qualified business income deduction
Worked examples
$120,000 profit, single owner
Net earnings are 92.35% × $120,000 = $110,820, so SE tax is $16,955.46 and half ($8,477.73) is deductible. Taxable income before QBI is $95,422; 20% of QBI would be $22,304, but the deduction is capped at 20% of taxable income ($19,084). Income tax is about $11,506, for $28,462 in total. With a $60,000 S-corp salary, payroll tax is $9,180, the $53,410 K-1 profit avoids SE tax and the total including $2,000 of costs is about $24,950 — a saving of roughly $3,512.
Married consultant with $250,000 of profit
Social Security tax stops at the $184,500 wage base, so SE tax is $29,573. Joint taxable income of about $203,013 is far below the $403,500 QBI threshold, so the full 20% deduction ($40,603) applies even for a service business. Federal tax is about $54,728; an S corp paying a $100,000 salary would cost about $46,754 including $2,500 of extra costs.
Small LLC where an S corp does not pay
On $40,000 of profit, SE tax is $5,652 and total federal tax about $7,427. An S corp would save SE tax on only $5,705 of K-1 profit, shrink the QBI deduction and add $2,000 of costs, so the election would cost about $1,131 more per year.
Frequently asked questions
How is a single-member LLC taxed?+
By default the IRS disregards a single-member LLC for income tax. Its profit is reported on the owner’s Schedule C and taxed at the owner’s income tax rates, plus 15.3% self-employment tax on 92.35% of profit. The LLC can instead elect to be taxed as an S corporation or C corporation.
Does an LLC pay taxes if it makes no money?+
A disregarded LLC with no profit owes no federal income or self-employment tax, though you still report it on Schedule C. Many states charge annual LLC fees or minimum franchise taxes regardless of profit — for example California’s $800 minimum tax.
When does an S corp election save money?+
An S corp saves self-employment tax on the profit above a reasonable salary, but adds payroll and tax-return costs and can shrink the QBI deduction. It often starts to pay off once profit is comfortably above the salary you would need to pay yourself — commonly somewhere around $50,000–$80,000 of profit or more.
Do LLC owners get the QBI deduction?+
Yes. Single-member LLC owners can usually deduct up to 20% of qualified business income. Above $201,750 of taxable income ($403,500 joint) for 2026, the deduction phases down for service businesses and becomes limited by W-2 wages and business property for others.
How much should an LLC owner set aside for taxes?+
A common rule of thumb is 25%–35% of profit for federal and state taxes combined. This calculator shows your federal share and a quarterly estimated payment; add your state income tax rate on top.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.