1099 vs. W-2 Take-Home Calculator
The same gross pay produces different take-home pay depending on whether you're paid on a W-2 or a 1099. Contractors owe the full 15.3% self-employment tax, while employees split payroll tax with their employer. Compare both scenarios for 2026 below.
As a W-2 employee
Take-home rate 82%
Take-home $61,593 Tax $13,408
Gross pay $75,000
FICA payroll tax (7.65%) $5,738
Federal income tax $7,670
Texas income tax $0
Take-home pay $61,593
As a 1099 contractor
Take-home rate 79%
Take-home $59,505 Tax $15,495
Gross pay (net profit) $75,000
Self-employment tax (15.3%) $10,597
Federal income tax $4,898
Texas income tax $0
Take-home pay $59,505
At the same gross pay, a W-2 employee takes home
$2,087 more than a 1099 contractor
This is because contractors pay the full 15.3% self-employment tax, while W-2 employees split the 7.65% FICA tax with their employer. Contractors typically need to charge more per hour to make up the difference.
1099 vs. W-2 by state
State income tax changes the size of the gap between contractor and employee take-home pay. Jump to your state:
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