1099 vs W-2 Tax Calculator
Compare net pay as a contractor vs employee — including self-employment tax.
Free 1099 vs W-2 Tax Calculator — True Take-Home Comparison
Considering going freelance? Or comparing a contractor offer to a salaried role? The 1099 vs W-2 calculator shows the real tax difference between being a self-employed contractor and a W-2 employee on the same gross income — including self-employment tax (15.3% on the first ~92% of net earnings).
How to use this tool
- 1
Enter gross income for both paths
What you'd earn either way.
- 2
Add 1099 business expenses
Home office, software, mileage — reduces net SE income.
- 3
Compare take-home
W-2 vs 1099 side by side, plus the self-employment tax burden.
Pro tips
- 1099 contractors pay both halves of FICA (15.3%) — W-2 employees only pay half (employer covers the rest).
- A 1099 contractor should charge 25–40% more than the equivalent W-2 rate just to break even.
- Don't forget W-2 benefits — health insurance, 401(k) match, PTO, and disability are worth $15K–$30K/year.
Frequently asked questions
Why does 1099 income cost so much more in tax?
Because you're paying the employer's half of Social Security and Medicare yourself — 7.65% on top of your normal FICA.
Are business expenses really deductible?
Yes — Schedule C lets you deduct ordinary and necessary business expenses, reducing both income tax and SE tax.
What about an S-Corp?
S-Corps can reduce SE tax by splitting earnings into salary + distributions. Worth it once net SE income exceeds ~$60K.
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