Compare total compensation between a W-2 job and 1099 contract — including benefits, taxes, and take-home.
A 1099 contractor pays 15.3% SE tax and covers their own benefits, while a W-2 employee has half their FICA paid by the employer. Enter both offers to compare true take-home pay.
FreeToolHub W-2 vs 1099 Calculator is a free browser-based tool that compares take-home pay between employee and contractor status, no signup.
Tax brackets, standard deductions, and SS wage base are based on IRS inflation-adjusted figures for the 2025 tax year (Rev. Proc. 2024-40). 2026 tax year figures will be updated when IRS releases them. State income tax rates are simplified (flat/representative rates). This calculator is for estimation only — consult a tax professional for filing.
About this tool
$80K salary or $100K contract? See what you actually keep after taxes. Free, 2026 accurate.
What Is the W-2 vs 1099 Calculator?
The W-2 vs 1099 Calculator helps you compare two job offers on an apples-to-apples basis: a W-2 employee salary and a 1099 contractor rate. It factors in federal and state income tax, self-employment tax, health insurance, retirement contributions, and the value of paid leave to show your true take-home pay under each classification.
Who Should Use This Tool?
This calculator is for freelancers, consultants, gig workers, independent contractors, and anyone deciding between a job offer as a W-2 employee and a 1099 contract. It helps you evaluate whether a contract rate justifies the extra costs of self-employment tax and benefits you must now pay yourself.
How Does This Tool Work?
The calculator estimates W-2 net pay using 2026 federal and state tax brackets, standard deduction, and FICA (employee pays 7.65%). For 1099, it adds self-employment tax (15.3%), estimates health insurance costs (monthly premiums minus possible QSEHRA reimbursement), retirement account contributions (SEP-IRA or Solo 401(k)), and subtracts the value of paid leave (W-2 only). The result shows how much each option leaves in your pocket after taxes, benefits, and expenses.
Which Costs More: $75,000 W-2 or $100,000 1099 in California?
Scenario: Choosing between a $75,000 W-2 salary or a $100,000 1099 contract in California:
Frequently asked
Is a $100,000 1099 contract better than a $75,000 W-2 salary?
Not necessarily. After SE tax, health insurance, and retirement contributions, the $75,000 W-2 may leave you with more take-home pay than a $100,000 1099. Use this calculator to compare net income, including the value of paid leave and benefits.
What is the SE tax rate in 2026?
Self-employment tax is 15.3%: 12.4% for Social Security (capped at $176,100 in earnings) and 2.9% for Medicare (no cap, plus 0.9% for high earners above $200,000 single / $250,000 married). This is double the 7.65% FICA an employee pays.
Do 1099 contractors get retirement benefits?
No. Contractors must contribute to their own retirement accounts. You can deduct SEP-IRA contributions up to $69,000 or Solo 401(k) up to $69,000 in 2026. The calculator includes deductions for these contributions.
How much does health insurance cost for a 1099 contractor?
Individual health insurance typically costs $400-800 per month depending on age, plan, and state. You can deduct 100% of health insurance premiums above-the-line as a self-employed person, but this is factored into net income, not AGI.
Can I deduct home office and car expenses as a 1099 worker?
Yes. You can deduct the business portion of home office (up to $1,500 using $5/sq ft or actual expenses), internet, phone, and car (67¢/mile in 2026). These deductions reduce your net business income before SE tax and income tax.
Do I need a business license to be a 1099 contractor?
It depends on your city, county, and profession. Many jurisdictions require a business license regardless of size. Check with your local government.
What are the W-2 advantages?
W-2 employees receive employer-paid health insurance, paid leave (sick and vacation), retirement matching, and workers compensation protection. The employer covers 7.65% FICA and also pays unemployment insurance.
How do I calculate the equivalent W-2 salary for a 1099 rate?
Take your 1099 rate and adjust for SE tax (divide by ~1.13), health insurance, retirement, and paid leave. This calculator automates this process using your state and salary information.
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