What is the 2026 C-Corp tax rate?

The federal C-Corporation tax rate is a flat 21%. State corporate tax rates range from 0% (Wyoming, South Dakota) to 11.5% (New Jersey). The combined federal and state rate for most states is 25% to 30%.

What is the self-employment tax?

Self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare) on 92.35% of net self-employment income. The Social Security portion is capped at $176,100 in 2026. Half of SE tax is deductible from income.

Should I elect S-Corp status?

S-Corp election can reduce self-employment tax by allowing owners to pay themselves a reasonable salary (subject to FICA) while taking remaining profits as distributions (not subject to SE tax). This typically saves money when profits exceed $50,000 to $75,000.

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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.

Revenue and Expenses

Annual Gross Revenue ($)

Cost of Goods Sold ($)

Operating Expenses ($)

Rent, payroll, utilities, marketing, software, etc.

Other Expenses ($)

Tax Structure

Federal Rate (%)

Your marginal bracket

State Rate (%)

Profit Summary

Enter revenue and expenses, then click calculate.

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Introduction

This Net Profit After Tax is designed for professionals who need accurate and reliable calculations in their daily work. Whether you are planning finances, managing projects, or making critical business decisions, having the right numbers at your fingertips is essential. This tool provides instant results based on proven formulas, saving you time and reducing the risk of manual calculation errors. By using this calculator, you can focus on analysis and decision-making rather than spending time on complex computations. The interface is straightforward and designed for practical use, ensuring that you get the information you need quickly and efficiently.

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

Net Profit After Tax = Gross Revenue - Expenses - Federal Tax - State Tax - Self-Employment Tax

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.

Conclusion

This calculator provides a reliable way to perform essential calculations for your professional needs. The results are based on standard formulas and should be used as estimates for planning and analysis purposes. For critical decisions, especially those involving financial, legal, or medical matters, it is always advisable to verify results with a qualified professional. Use this tool as part of your broader decision-making process, and explore related calculators on this platform to support your comprehensive planning needs. Regular use of accurate calculation tools helps ensure consistency and precision in your professional work.