1099 vs W-2 calculator
Got a contractor offer and a salaried offer? See which one leaves more in your pocket, and what the 1099 needs to pay to be worth it.
Which leaves you more
-
by $0 a year, after federal tax.
- FICA (7.65 %) $0
- Income tax $0
- Benefits $0
- SE tax (15.3 %) $0
- Income tax $0
- Expenses $0
Federal tax only, standard deduction, no other income. A 1099 contract usually has no paid time off, so price that in too.
What the calculator compares
- W-2: salary minus 7.65 % FICA and federal income tax, plus the value of benefits you would not get on a 1099.
- 1099: pay minus business expenses, 15.3 % self-employment tax on 92.35 % of profit, and federal income tax after the deduction for half of SE tax and the 20 % QBI deduction.
Want the full picture first? Read 1099 vs W-2: what changes for you, or work out just your tax with the self-employment tax calculator.
Questions
How much more should a 1099 job pay than a W-2 job?
It depends mostly on benefits. At a $60,000 salary with no benefits, about 5 % more covers the extra tax. With $7,000 of employer benefits and $3,000 of business expenses, it takes about 25 % more. Use the break-even figure in the calculator for your own numbers, and add something for unpaid time off.
Why do I pay more Social Security and Medicare on a 1099?
An employee pays 7.65 % and the employer pays another 7.65 %. A 1099 contractor is both, so the self-employment tax is 15.3 % of 92.35 % of profit. Half of it is deductible, which softens the hit a little.
Is 1099 income taxed at a higher income tax rate?
No. The income tax brackets are the same. The difference is the self-employment tax on top, and that business expenses and the 20 % QBI deduction can lower your taxable income.
What does the break-even number mean?
It is the yearly 1099 pay that leaves you the same cash, after federal tax and your business expenses, as the W-2 salary plus the value of its benefits.
Sources
Last updated November 3, 2026. Figures for tax year 2026 from IRS and SSA sources.