5 Free Calculators
Understand your real take-home pay. Compare 1099 vs W2, calculate your 2026 tax bracket, and break down every paycheck deduction.
The gap between an offered salary and the money that reaches your account is larger than most people expect, and it is not one deduction — it is a stack of them. Federal income tax, Social Security at 6.2%, Medicare at 1.45%, state and sometimes local income tax, health insurance premiums, and retirement contributions each take a slice before you see anything.
For a typical US salaried employee, take-home lands somewhere between 65% and 80% of gross, driven mostly by which state you live in and what benefits you elect. That range is wide enough that comparing two job offers on gross salary alone can point you at the worse one.
| Factor | Typical impact on take-home |
|---|---|
| State income tax | 0% (TX, FL, WA and others) to over 13% (CA top bracket) |
| Filing status | Married filing jointly widens the brackets substantially |
| 401(k) contribution | Reduces taxable income dollar for dollar (traditional) |
| Health premiums | Usually pre-tax, lowering taxable income as well as pay |
| Self-employment | Adds the employer half of FICA — 15.3% total instead of 7.65% |
| Pay frequency | Does not change annual tax; does change per-cheque withholding |
Being "in the 24% bracket" does not mean you pay 24% of your income in tax. US brackets are marginal, so each portion of income is taxed at its own rate: the first tranche at 10%, the next at 12%, and so on. Only the dollars above the bracket threshold are taxed at 24%.
This is why a raise can never leave you worse off — a persistent myth, but arithmetically impossible under a marginal system. Your effective rate, meaning total tax divided by total income, is always well below your top marginal rate. The tax bracket calculator shows both figures so the difference is concrete.
A $50/hour contract is not equivalent to a $104,000 salary. As a 1099 contractor you pay both halves of FICA (15.3% rather than 7.65%), fund your own health insurance and retirement, take unpaid time off, and absorb unbilled hours spent finding work. A common rule of thumb is that a contract rate needs to be roughly 25–35% above the equivalent salaried hourly rate just to break even on total compensation.
The 1099 vs W2 calculator works this through with your actual numbers, including the deductions available to contractors that partially offset the difference.
Run both through the after-tax paycheck calculator with the correct state for each. A $95,000 offer in Texas and a $105,000 offer in California can land within a few hundred dollars of each other in take-home pay — before you account for cost of living.
Will a raise push me into a higher bracket and cost me money?
No. Only the income above the new bracket threshold is taxed at the higher rate — everything below it continues to be taxed exactly as before. Earning more always leaves you with more after tax. The one real exception involves benefit cliffs for income-tested programmes, which is a separate issue from tax brackets.
Why does my paycheck differ from the calculator's estimate?
Usually because of employer-specific deductions the calculator cannot know about: health, dental and vision premiums, HSA or FSA contributions, life insurance, union dues, parking, or a 401(k) match structure. Local and city taxes also vary. Compare against a real pay stub and add your specific pre-tax deductions to close the gap.
How much more should I charge as a contractor?
Roughly 25–35% above the equivalent W2 hourly rate is a common starting point, covering the extra 7.65% in self-employment tax, health insurance, retirement contributions, and unpaid time off. If you also carry significant unbilled time between contracts or expensive liability insurance, the premium needs to be higher.
Is bi-weekly pay better than semi-monthly?
Annual pay is identical; the rhythm differs. Bi-weekly means 26 cheques a year, so two months contain three paydays — which feels like a bonus but is just the same salary distributed differently. Semi-monthly means 24 larger cheques that align neatly with monthly bills. Neither changes your tax liability.
Should I choose a traditional or Roth 401(k)?
Traditional reduces your taxable income now and is taxed on withdrawal; Roth is funded with after-tax dollars and withdrawn tax-free. The deciding question is whether your tax rate in retirement will be higher or lower than today. Early-career earners in low brackets often favour Roth; high earners near their peak often favour traditional.
Do these calculators use current tax brackets?
They use published federal brackets and standard deduction figures for the current tax year, plus state rates where applicable. Tax law changes and individual situations vary widely — treat the output as a well-informed estimate for planning, and consult a tax professional for filing decisions.
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