1099 vs W-2 Calculator

Same gross salary, very different paychecks. As a contractor you pay both halves of FICA — about 7.65% more than a W-2 employee. Enter your numbers to see the real gap, then account for the benefits you'd lose.

Gross income

Same number compared side-by-side for 1099 and W-2

Business expenses (1099 only)

Deductible expenses reduce your 1099 net profit and tax

Filing status

State

W-2 benefits value

What your employer covers — set to $0 to ignore each item

Health insurance (annual employer contribution)

401k match (annual employer contribution)

Paid time off (days)

⚠️ Estimates only. Tax rates updated for 2026. Consult a CPA for advice specific to your situation.

1099 take-home

$51,935

48.1% effective rate

W-2 take-home

$69,436

30.6% effective rate

W-2 total value (cash + benefits)

Cash take-home$69,436

+ Health insurance$6,000

+ 401k match$3,000

+ PTO value (15 days)$5,769

Adjusted W-2 value$84,205

Tax comparison

1099W-2

FICA / SE tax$28,259$7,650

Federal income tax$10,505$13,614

State income tax$9,300$9,300

Total tax$48,065$30,564

Break-even 1099 rate

$175,589

You need to earn $75,589 more as a 1099 contractor to match this W-2 package including benefits.

The W-2 is worth more after benefits. At $100,000, the 1099 take-home is $32,270 less per year than this W-2 package once benefits are factored in.

The key driver: contractors pay both halves of FICA (~15.3% SE tax vs ~7.65% for W-2 employees). Business expenses and the SE deduction narrow the gap.