QBI Salary Optimizer (S-corp)
Above the income threshold, your 20% QBI deduction (ยง199A) is capped at 50% of the W-2 wages your S-corp pays. Raising your salary lifts that cap โ€” but the extra wages come out of your pass-through profit (shrinking the QBI base) and cost payroll tax. Slide your salary to find the balance point that maximizes what you keep.

Your numbers

The salary that maximizes your deduction

Best owner salary
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Deduction vs. payroll tax as your salary rises

QBI deduction Payroll tax Net benefit
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Educational only โ€” not tax, legal, or financial advice. ScanMyTaxes is a software tool, not a tax preparer or advisor, and does not prepare or file returns. Every figure here is an estimate based on the information you enter; results are not guaranteed and depend on your specific situation. The "best" salary shown balances the QBI deduction against payroll tax โ€” but your salary must still be defensible as reasonable compensation for the work you do, which is the most common thing the IRS challenges; the optimizer will not enforce that floor for you. Payroll tax is estimated as Social Security (up to the $184,500 wage base) plus Medicare and the 0.9% surtax; the deductible employer half is credited back at your rate. Confirm the exact salary with your CPA before changing payroll. Using this tool does not create a client relationship.