Free tool
1099 vs W-2 calculator
Comparing a contract offer with a salaried one? Enter both and see what you actually keep, plus the hourly 1099 rate that matches the W-2 offer.
Federal figures for tax year 2026: self-employment tax of 15.3% on 92.35% of net profit (12.4% Social Security up to the $184,500 wage base, 2.9% Medicare), half of self-employment tax deducted from income, standard deduction of $16,100 single, $32,200 married filing jointly, $24,150 head of household, the 20% qualified business income deduction, and 2026 federal brackets. State income tax is not included. Estimates only; confirm with a tax professional. Figures should be verified against the final IRS inflation adjustments before relying on them.
FAQ
Questions, answered
Why do people say a 1099 rate should be 25% to 30% higher?
Because the contractor pays the employer's half of payroll tax (7.65%), buys their own benefits, gets no paid time off, and carries the gaps between contracts. The calculator above makes the tax part exact; the benefits and downtime are your inputs.
Can I deduct health insurance as a 1099 contractor?
Yes, self-employed health insurance premiums are deductible from income (not from self-employment tax). Add them to expenses above for a closer estimate.
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