US S-Corp vs C-Corp Tax Comparison Calculator
Compare after-tax cash to an owner between S-Corp (pass-through) and C-Corp (double taxation) structures for a given business revenue, owner salary, and deductions. Includes assumptions and adjustable tax rates.
- Page updated:
- Jul 14, 2026
- Tool version:
- v1.1.0
Overview
Concise comparison of estimated owner after-tax cash under S-Corp (pass-through) versus C-Corp (corporate tax then dividend tax) federal rules. Adjust the inputs and tax rates to reflect your situation. Does not include state taxes or other special rules.
Core inputs
Results
Owner net — S-Corp
$53,220.00
Owner net — C-Corp
$51,050.00
Difference (S − C)
$2,170.00
Recommendation
Under these assumptions, S-Corp leaves more owner net cash. Consider an S-election if supported by other factors (state taxes, fringe benefits, growth plans).
How to read the result
- What it means
- The displayed value is an estimate based on your inputs. It represents the calculated scenario under current assumptions, not a guaranteed amount.
- Next step
- Use the result as a starting point. Adjust parameters to compare scenarios and validate with a professional when needed.
- Calculation limits
- The model uses simplified formulas and cannot account for all variables in your specific case (local regulations, personal conditions, temporal changes).
Methodology
This calculator models the basic federal-level differences between S-Corp and C-Corp taxation for an owner who receives a salary and distributions.
Key steps: 1) compute taxable business income = revenue - owner salary - business deductions; 2) for C-Corp: apply corporate tax to taxable business income, then apply dividend tax to distributed after-tax profits; 3) for S-Corp: pass business taxable income to owner and tax at the owner's personal rate; 4) in both cases, owner pays income tax and payroll taxes on salary. The tool uses adjustable rates and simple assumptions described in the disclaimer.
Limitations: excludes state corporate and personal taxes, fringe benefits, qualified business income deduction specifics, self-employment tax nuances, AMT, Net Investment Income Tax, and certain credits. Use as an illustrative comparison only.
Glossary+−
- Taxable Company Income
Revenue minus owner salary and business deductions; the amount subject to corporate tax or passed through to owners.
- Corporate Tax
Tax on a C-Corporation's taxable income at the corporate level.
- Pass-Through Income
Business income that flows through to owners of pass-through entities (like S-Corps) and is taxed on the owner's personal return.
- Dividend Tax
Tax on distributions from corporate after-tax profits when paid to shareholders; often taxed at qualified dividend rates.
Key takeaways
This tool provides a simplified federal-level comparison of owner cash under S-Corp vs C-Corp structures. Adjust inputs to reflect your circumstances and consult a tax advisor for a full analysis.
Related calculators
Useful links
Worked examples
Example: $100,000 Revenue, $60,000 Salary, $20,000 Deductions
Using these defaults, S-Corp typically yields higher owner net cash because corporate-level tax plus dividend tax often exceed single-level personal tax on pass-through income for this scenario. Results will vary with different rates and deduction levels.
Interpretation
Using these defaults, S-Corp typically yields higher owner net cash because corporate-level tax plus dividend tax often exceed single-level personal tax on pass-through income for this scenario. Results will vary with different rates and deduction levels.
Frequently asked questions
Does this include state taxes?
No. State corporate and personal taxes are not included. Include state rates separately when comparing structures for your location.
Why do I need to set owner salary separately?
Owner salary affects both payroll taxes and the amount of business profit subject to corporate tax or pass-through tax. For S-Corps, the IRS requires reasonable compensation for owner-employees.
Is this definitive tax advice?
No. This is an illustrative calculator. Consult a qualified tax professional for filing-specific guidance and planning tailored to your facts.
Sources & references
- IRS - S Corporations: https://www.irs.gov/businesses/small-businesses-self-employed/s-corporations
- IRS - Corporations: https://www.irs.gov/businesses/small-businesses-self-employed/corporations
Quality & oversight
- Author
- Ugo Candido, MBA
- Maintained by
- Ugo Candido, MBA
- Page updated
- Jul 14, 2026
- Tool version
- v1.1.0