1099 vs W2 Calculator 2026

A $100K 1099 offer is NOT the same as a $100K W2 salary. As a contractor, you pay more taxes and lose benefits. Use this calculator to find the real difference.

W2 Employee

Full-time salaried position

$
$
$

1099 Contractor

Independent contractor position

$
$
$
%

Side-by-Side Comparison

Gross Income
Self-Employment Tax
Federal Income Tax
State Income Tax
Benefits Value
Business Expenses
Take-Home Pay
1099 pays you more / less per year

Why a 1099 Offer Needs to Pay More

As a W2 employee, your employer pays half of your Social Security and Medicare taxes (7.65%), provides benefits like health insurance and a 401(k) match, and gives you paid vacation. As a 1099 contractor, you pay all of that yourself.

A simple rule of thumb: a 1099 rate needs to be roughly 25–35% higher than a comparable W2 salary to result in the same take-home pay — and sometimes more, depending on benefits and your state taxes.

Quick Rule of Thumb

If a W2 job pays $80,000/year, you'd need roughly $105,000–$110,000 as a 1099 contractor just to break even after taxes and the cost of your own health insurance.