S-Corporation pass-through — 2025
Wages are subject to FICA; remaining profit passes through without self-employment tax but still faces ordinary income tax at the shareholder level.
Parameters (2025)
Single filer model. State income tax defaults to 0 unless you set the slider (combined state rate 0–13.3% applied to net business profit — illustrative only).
0.0%
IRS expects reasonable compensation; this demo enforces a $40k floor when profits allow.
Estimated net (annual)
$68,336
Effective load 19.6% of net business profit
Breakdown
- Federal income tax$7,484
- Self-employment tax$0
- Payroll (FICA stack)$9,180
- Corporate income tax$0
- Qualified dividend tax$0
- State (slider)$0
- Total$16,664
Quick comparison (same inputs)
| Structure | Net annual | Effective rate |
|---|---|---|
| S-Corporation (pass-through) | $68,336 | 19.6% |
| Sole proprietor (Schedule C) | $67,541 | 20.5% |
| LLC (single-member, default disregarded) | $67,541 | 20.5% |
| C-Corporation | $64,173 | 24.5% |
Sources & limits
Federal rates and brackets should be verified each filing season on IRS.gov, including the self-employment tax computation and QBI rules. State taxes vary by nexus, apportionment, and entity — the slider is purely illustrative and defaults to 0. This page is educational, not individualized tax advice.