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.
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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:
Frequently asked questions
What's the real difference between 1099 and W-2 pay? +
As a 1099 contractor, you pay the full 15.3% self-employment tax and get no employer-provided benefits. As a W-2 employee, you split the 7.65% FICA tax with your employer, who also typically covers health insurance, retirement matching, and unemployment insurance on top of your pay.
How much more should I charge as a contractor to match a W-2 salary? +
A common rule of thumb is 20-30% more than an equivalent salary, to cover the extra self-employment tax and the benefits you're not getting — but the real number depends on your tax bracket and what benefits you'd otherwise receive. This calculator shows the exact tax-only gap for your numbers.
Do contractors get any tax breaks employees don't? +
Yes — contractors can deduct half of their self-employment tax, claim the 20% qualified business income (QBI) deduction, and deduct ordinary business expenses (equipment, software, home office, mileage) that W-2 employees generally cannot.
Is 1099 or W-2 better? +
Purely on take-home pay at the same gross amount, W-2 usually wins because of the FICA split. But 1099 work often comes with more flexibility, more deductions, and sometimes higher rates to begin with — the right call depends on your whole situation, not just the tax comparison.
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