Net Profit After Tax Calculator
Calculate business net profit after federal, state, and self-employment taxes for C-Corps and pass-through entities using 2026 tax rates.
Rent, payroll, utilities, marketing, software, etc.
Tax Structure
Your marginal bracket
Enter revenue and expenses, then click calculate.
What This Calculator Does
This calculator determines your business net profit after federal, state, and self-employment taxes. It supports both C-Corporation (flat 21% federal rate) and pass-through entity (LLC, S-Corp, sole proprietorship) tax structures, including the 15.3% self-employment tax applicable to pass-through owners.
The Formula
Revenue minus all business expenses gives pre-tax profit. C-Corps pay a flat 21% federal rate. Pass-through entities pay tax at individual rates (10% to 37%) plus self-employment tax (15.3% on 92.35% of net income, with the Social Security portion capped at $176,100 in 2026). The 20% QBI deduction may reduce pass-through tax further.
Step-by-Step Example
Enter revenue and expenses
Gross revenue: $500,000. COGS: $200,000. Operating expenses: $100,000. Pre-tax profit: $200,000.
Select entity type
Pass-through LLC. Federal marginal rate: 24%. State rate: 5%.
Calculate taxes
Federal: $48,000. State: $10,000. Self-employment tax: $25,456. Total tax: $83,456.
Review net profit
Net profit after tax: $116,544. Effective tax rate: 41.7%. Monthly net: $9,712.
Real-World Use Cases
Entity Structure Decision
Compare C-Corp versus pass-through tax treatment to determine which entity saves more in taxes.
Quarterly Tax Estimation
Calculate estimated quarterly tax payments to avoid IRS underpayment penalties.
Profit Distribution Planning
Determine how much profit is available for owner distributions after setting aside tax obligations.
Common Mistakes to Avoid
Forgetting self-employment tax for pass-through entities. The 15.3% SE tax is in addition to income tax and can add $20,000+ to your tax bill.
Not taking the 20% Qualified Business Income (QBI) deduction for eligible pass-through businesses, which can significantly reduce taxable income.
Comparing C-Corp and pass-through rates without accounting for double taxation. C-Corp profits are taxed at 21%, then dividends are taxed again at the shareholder level.
Not making quarterly estimated tax payments. The IRS charges penalties if you owe more than $1,000 at filing time.
Frequently Asked Questions
Accuracy and Disclaimer
Tax calculations are estimates based on 2026 federal rates. Actual liability depends on your full tax picture including deductions, credits, other income, and state-specific rules. Consult a CPA or tax advisor.
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