S-Corp vs LLC Tax Savings Calculator by State
The S-Corp election saves on federal payroll tax — but each state adds its own entity fees and income taxes that affect the net result. Choose your state for a calculation tailored to your state's exact rules.
California
State income tax + 1.5% S-Corp entity tax
Texas
No state income tax
Florida
No state income tax
Illinois
State income tax + 1.5% S-Corp entity tax
How state taxes affect the S-Corp decision
The federal payroll-tax saving from an S-Corp election is the same regardless of your state: only the W-2 salary portion faces FICA instead of your full net income. But states differ significantly in how they treat S-Corps at the entity level:
- No income-tax states (Texas, Florida) add no state income tax to either scenario. The S-Corp advantage is pure federal FICA savings minus state LLC fees.
- Flat-tax states (Illinois) apply the same rate to both scenarios, but Illinois S-Corps owe a 1.5% Personal Property Replacement Tax at the entity level — a cost that LLCs avoid.
- Progressive-tax, entity-fee states (California) add both progressive income tax and a per-entity S-Corp franchise tax (greater of $800 or 1.5% of net income in CA). The S-Corp saves federally but costs more at the state entity level.
Pick your state above to see the exact numbers for your situation. This tool uses a default of $80,000 net income and 40% reasonable salary — adjust both in the calculator to match your actual figures.