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Small Business Tax Savings Calculator

Slide in your numbers, switch on the strategies that fit your business, and watch your estimated 2026 federal and state tax change in real time. See exactly which moves save the most - before the year ends.

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Your business and household

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Turn strategies on and adjust

Elect S-corporation status

Pay yourself a reasonable salary; profit above it avoids the 15.3% self-employment tax.

Saves $7,623
How this works

Fund a Solo 401(k)

Employee deferrals plus an employer contribution, deducted this year.

Saves $7,278
How this works

Deduct health insurance premiums

Self-employed owners can deduct medical, dental, and long-term care premiums.

Contribute to an HSA

Requires a high-deductible health plan; deductible now, tax-free for medical costs.

Home office deduction

Simplified method: $5 per square foot of space used regularly and exclusively for business, up to 300 sq ft.

Saves $156

Business mileage

2026 standard rate: 72.5 cents through June, 76 cents from July 1. Keep a dated log.

Buy needed equipment this year

Section 179 or 100% bonus depreciation lets you deduct the full cost in the year it is placed in service.

Hire your children

Pay reasonable wages for real work. Each child's standard deduction can shelter up to $16,100 of earned income.

Rent your home to your business (Augusta rule)

Up to 14 days of fair-market rent for real business meetings - deductible to the S corp, tax-free to you.

Capture missed business expenses

Phone, internet, software, education, and supplies that were paid personally or never recorded.

How the calculator works

  • 2026 federal brackets and standard deduction (Rev. Proc. 2025-32), with all household income on one joint, single, or head-of-household return.
  • Self-employment tax of 15.3% on 92.35% of profit up to the $184,500 Social Security wage base, 2.9% above it, and the 0.9% additional Medicare tax over $200,000 ($250,000 joint).
  • The 20% qualified business income deduction with the 2026 thresholds ($201,750; $403,500 joint), the wider $75,000 / $150,000 phase-in, the W-2 wage limit, the specified-service phase-out, and the new $400 minimum.
  • S-corp owners pay both halves of payroll tax on their salary; the employer half is deductible. Added S-corp costs are counted as cash you spend.
  • State tax is a flat rate applied to federal taxable income before the QBI deduction. Local taxes, credits, itemized deductions, capital gains, and the alternative minimum tax are not modeled.
  • Strategies are applied in the order shown, so each strategy's savings reflect the ones before it and the amounts add up to the total.

Turn an estimate into a plan

Most of these strategies have deadlines, documentation rules, and interactions with your state return. A CPA can confirm which ones fit, set the right salary and contribution amounts, and put them in place before December 31.

Book a planning consultation Need more detail? Try the Owner Tax Planner See all free calculators

Questions about the calculator

It uses the actual 2026 federal brackets, payroll tax rates, and QBI rules, so it is a good guide to the size of each opportunity. It simplifies state tax and leaves out credits, itemized deductions, and investment income, so treat the result as a starting point for a conversation with a CPA, not a filing number.

Educational estimate, not tax advice.