How to use the LLC tax calculator
- Enter the LLC's yearly profit (income minus business expenses) and your ownership share.
- Add any W-2 wages you also earn; they push LLC income into higher brackets.
- Choose your filing status, state income tax rate and your state's LLC fee or franchise tax.
The $80,000 example
| Tax | Amount |
|---|---|
| Self-employment tax | $11,304 |
| Federal income tax (after standard + QBI deduction) | $5,344 |
| State income tax (5%) | $3,717 |
| State LLC fee | $300 |
| Total | $20,665 |
If the same owner also earns $50,000 of W-2 wages, the LLC income is taxed at higher brackets: the tax caused by the LLC rises to about $26,800.
How LLCs are taxed
- Single-member LLC (default): taxed like a sole proprietor on Schedule C.
- Multi-member LLC (default): taxed as a partnership; each member pays tax on their share, reported on a K-1.
- LLC taxed as an S corp: you pay yourself a reasonable salary through payroll and take the rest as distributions; see the S corp tax calculator.
Ways to lower LLC taxes
- Track every business expense: equipment, software, home office, mileage, marketplace fees.
- Retirement plans: a SEP-IRA or solo 401(k) can shelter a large share of profit.
- Self-employed health insurance is deductible.
- The QBI deduction (included here) can deduct up to 20% of qualified business income.
- Consider an S corp election once profit is high and steady.
Pay during the year
There's no withholding on LLC profit, so the IRS expects quarterly estimated payments. The calculator shows the federal amount; our guide to quarterly estimated taxes explains the dates and safe-harbor rules, and the 1099 tax calculator adds withholding and safe harbor. Sellers can see how platform fees and costs reduce taxable profit in how to calculate reseller profit.
Know your profit before tax time
Till is a small business profit planner that splits every sale into costs, a tax set-aside and your share, so quarterly taxes are always covered. Flip does the same for resellers, item by item across platforms. Both have a free demo with sample data.
A 2026 federal estimate with the standard deduction and QBI deduction; state rules vary. Not tax advice.
Frequently asked questions
How is an LLC taxed?
How much tax does an LLC owner pay on $80,000?
Does an LLC lower my taxes?
Do I pay taxes on money I leave in the LLC?
What are state LLC fees?
When should my LLC elect S corp status?
Written by
Finance Specialist & Editor, VaultlyApps
Emma Whitfield writes and edits the VaultlyApps money guides and free calculators. Her focus is US household finance — budgeting on a real paycheck, paying down credit card and student debt, emergency funds and savings goals, renting — and the money side of freelancing and small-business income, from pricing and profit margins to self-employment tax. Every guide is researched against primary sources such as IRS publications and the CFPB, every number is checked in our tested calculators, and tax content is reviewed each year when new IRS figures come out. Emma is not a licensed financial adviser or tax preparer; her work is general education, not personal advice.
Researched against primary US sources, checked against independent calculators and reviewed by a finance expert on our team. Written for US readers — general education, not financial, tax or legal advice. Editorial policy · Disclaimer
