C Corporation vs S Corporation: tax comparison 2026
Compare the tax burden of the two legal forms with your own numbers, using each calculator below.
| C Corporation | S Corporation | |
|---|---|---|
| Description | Federal corporate tax 21% + dividend taxation (double taxation). | Pass-through: FICA only on the "reasonable salary", distributions FICA-exempt. QBI 20%. |
Official sources
- Internal Revenue Service (IRS) — Corporate & personal income tax