1099 vs W-2 Take-Home Pay Calculator
Got a contract offer and a salaried offer? Compare what you’d actually keep, and see the contract pay you need to break even.
| W-2 | 1099 | |
| Gross pay | ||
| Business expenses | — | |
| Social Security + Medicare | ||
| Federal income tax | ||
| Benefits | — | |
| Take-home value |
That’s about /hour for 2,080 hours, or more than the salary.
How this is calculated
W-2: we subtract the employee share of Social Security (6.2% up to $184,500) and Medicare (1.45%, plus 0.9% on high wages), and federal income tax after the standard deduction. Then we add the value of benefits.
1099: we subtract business expenses, full self-employment tax (15.3% on 92.35% of profit) and federal income tax after the half-SE-tax deduction, standard deduction and 20% QBI deduction.
Break-even is the contract pay where the 1099 take-home equals the W-2 take-home plus benefits.
Figures for tax year 2026. Full method and sources on our methodology page.
Common questions
How much more should a 1099 contractor charge than a W-2 employee?
Often 20–40% more, depending on benefits. As a contractor you pay both halves of Social Security and Medicare (15.3% instead of 7.65%), and you cover your own health insurance, retirement savings and time off. The break-even figure above shows your number.
Is 1099 or W-2 better for taxes?
Contractors pay more payroll tax but can deduct business expenses and may get the 20% QBI deduction. Employees have tax withheld automatically and usually get benefits. Which is better depends on the pay difference and your expenses.
What should I count as benefits?
What your employer pays toward health insurance, retirement matching, and the value of paid holidays and vacation. For example, a $3,000 401(k) match plus $6,000 of health premiums plus two weeks of paid leave on a $70,000 salary is about $11,700.
Last updated September 28, 2026. This calculator gives an estimate for federal taxes only and isn’t tax advice. State and local taxes aren’t included.