1099 vs W2 Calculator

Find out how much a 1099 rate needs to equal your W2 salary — and which puts more money in your pocket.

Your Compensation

W2 Annual Salary

1099 Annual Rate / Contract Value

Filing Status

State Income Tax Rate

W2 Benefits (employer-provided value)

Employer Health Insurance Value

Employer 401k Match (annual)

Other Benefits (PTO value, etc.)

1099 Business Expenses (deductible)

Self-paid Health Insurance

Self-Employed Retirement (SEP-IRA etc.)

Business Expenses (annual)

Comparison

Item	W2 Employee	1099 Contractor

W2 Net Take-Home

—

after tax + including benefits

1099 Net Take-Home

—

after all taxes + expenses

1099 Breakeven Rate: To match your W2 total compensation, your 1099 rate should be at least —

Self-Employment Tax: As a 1099 contractor, you pay both the employee and employer portions of FICA (Social Security + Medicare) — 15.3% on net self-employment income. W2 employees only pay the employee half (7.65%); employers pay the other half.

SE Tax Deduction: You can deduct 50% of self-employment tax from gross income, which reduces your federal income tax.

QBI Deduction: Most self-employed individuals qualify for the 20% Qualified Business Income deduction (Section 199A), further reducing taxable income.

Federal income tax brackets (2026, single): 10% (up to $11,600), 12% ($11,601–$47,150), 22% ($47,151–$100,525), 24% ($100,526–$191,950), 32%+.

⚠️ Tax calculations are simplified estimates using 2026 standard deductions. Actual tax depends on deductions, credits, state rules, and other income. Consult a CPA or tax professional.