All 51 jurisdictions
Where you operate changes the answer more than most people expect
The federal saving is the same everywhere. What differs is what your state charges the corporation on top — and in a handful of places, whether it acknowledges the election at all. Break-even figures below assume a single filer with no other income and roughly $1,860 of annual payroll and filing cost.
Does not recognise the federal election
These jurisdictions tax the corporation as though you had never filed Form 2553, which usually outweighs the federal saving entirely.
- District of Columbia
- New Hampshire
- Tennessee
- New York City
Recognises it, but charges the entity anyway
The election works, but a percentage of corporate net income is taken before anything reaches your return.
| State | Top income tax | Entity tax | Breaks even at |
|---|---|---|---|
| Alabama | 5.00% | $100 min | $42,000 |
| Alaska | None | — | $41,000 |
| Arizona | 2.50% | — | $40,000 |
| Arkansas | 3.90% | $150 min | $44,500 |
| California | 12.30% | 1.50% | $43,000 |
| Colorado | 4.40% | — | $39,500 |
| Connecticut | 6.99% | $250 min | $46,500 |
| Delaware | 6.60% | $175 min | $37,000 |
| District of ColumbiaNo S status | 10.75% | 8.25% | $47,000 |
| Florida | None | — | $41,500 |
| Georgia | 5.09% | — | $39,500 |
| Hawaii | 11.00% | — | $39,000 |
| Idaho | 5.30% | — | $39,000 |
| Illinois | 4.95% | 1.50% | $45,500 |
| Indiana | 2.95% | — | $40,000 |
| Iowa | 3.80% | — | $40,000 |
| Kansas | 5.58% | — | $39,500 |
| Kentucky | 3.50% | $175 min | $44,500 |
| Louisiana | 3.00% | — | $40,000 |
| Maine | 7.15% | — | $39,500 |
| Maryland | 5.75% | — | $40,500 |
| Massachusetts | 9.00% | $456 min | $50,000 |
| Michigan | 4.25% | — | $39,500 |
| Minnesota | 9.85% | — | $39,000 |
| Mississippi | 4.00% | — | $39,500 |
| Missouri | 4.70% | — | $39,500 |
| Montana | 5.90% | — | $39,500 |
| Nebraska | 5.01% | — | $39,500 |
| Nevada | None | — | $42,000 |
| New HampshireNo S status | None | 7.50% | $66,000 |
| New Jersey | 10.75% | $375 min | $49,500 |
| New Mexico | 5.90% | — | $39,500 |
| New York | 10.90% | $25 min | $40,000 |
| North Carolina | 3.99% | $200 min | $46,000 |
| North Dakota | 2.50% | — | $41,000 |
| Ohio | 2.75% | — | $40,000 |
| Oklahoma | 4.75% | — | $39,500 |
| Oregon | 9.90% | $150 min | $42,500 |
| Pennsylvania | 3.07% | — | $40,000 |
| Rhode Island | 5.99% | $400 min | $50,000 |
| South Carolina | 6.20% | $25 min | $39,500 |
| South Dakota | None | — | $41,000 |
| TennesseeNo S status | None | 6.50% | $55,000 |
| Texas | None | — | $40,500 |
| Utah | 4.50% | — | $39,500 |
| Vermont | 8.75% | $250 min | $47,000 |
| Virginia | 5.75% | — | $39,500 |
| Washington | None | — | $41,000 |
| West Virginia | 4.82% | — | $40,000 |
| Wisconsin | 7.65% | — | $39,500 |
| Wyoming | None | — | $41,000 |
Top income tax is the highest marginal individual rate. Entity tax is what the state charges an S corporation directly. Break-even is the net profit at which electing begins to save money under the default assumptions above; your own figure will differ, so open a state and run it.