Sole proprietor (Schedule C) — 2025
Schedule C profit drives self-employment tax and federal income tax after the standard deduction and optional QBI modelling.
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%
Estimated net (annual)
$67,541
Effective load 20.5% of net business profit
Breakdown
- Federal income tax$5,449
- Self-employment tax$12,010
- Payroll (FICA stack)$0
- Corporate income tax$0
- Qualified dividend tax$0
- State (slider)$0
- Total$17,459
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.