S corp tax rate

There is no single S corp tax rate. A corporation that has an S election generally does not pay federal income tax on its profit. The profit passes through to the owners and is taxed at each owner's ordinary bracket. The S corp calculator compares that result with a sole proprietor at a salary you enter.

Payroll tax on the salary

Wages are not self-employment tax. The employee and the S corp each pay 6.2% Social Security, up to the 184,500 wage base for 2026, and 1.45% Medicare with no wage cap. The employer half is a business expense. The employee half comes out of the paycheck. Additional Medicare Tax of 0.9% can apply to the employee above the threshold for the filing status.

What is not a rate

A distribution is not a second income-tax rate. It is the profit left after the salary and the employer payroll tax, and it is still ordinary income. Reasonable compensation is not a published percentage. The reasonable salary page says what the IRS fact sheet actually uses.

Some states charge an entity-level tax or a minimum fee. Those amounts are not in this site's rate file, so this page has no state table. Add the state bill yourself.