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1099 vs W-2 Comparison Calculator

Compare take-home pay as a 1099 contractor vs a W-2 employee.

Updated for the 2026 tax year · Last data update May 19, 2026
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Same gross pay compared as a W-2 employee vs a 1099 contractor (federal only).

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How to Use

  1. Enter the headline annual pay.
  2. Select your filing status.
  3. Compare estimated take-home pay as a W-2 employee vs a 1099 contractor.

Calculation Method

W-2: employee FICA of 7.65% plus federal income tax. 1099: self-employment tax (with about half deductible before income tax) plus federal income tax. We then compare take-home pay. State tax, benefits and business deductions are excluded.

Data source: IRS Schedule SE and 2026 Revenue Procedure.

Examples

\$100,000, single

W-2 pays 7.65% FICA; 1099 pays full SE tax but deducts half.

W-2 usually nets more

Frequently Asked Questions

Contractors pay both halves of FICA (the self-employment tax). Employees only pay the employee half; the employer pays the rest.

Not necessarily. Contractors can deduct business expenses and may negotiate higher rates. This tool compares taxes only.

A common rule of thumb is to add roughly 25–30% on top of an equivalent salary to cover self-employment tax and lost benefits.

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Disclaimer

This calculator provides estimates for informational and educational purposes only. SmartTaxCalcs does not provide tax advice. Your actual tax liability may differ based on your specific situation, recent law changes, and circumstances not modeled here (e.g., AMT, NIIT, special credits). We strongly recommend consulting a qualified tax professional (CPA, Enrolled Agent, or tax attorney) before filing or making financial decisions.

Data source: IRS Revenue Procedure / state Departments of Revenue. Last data update: May 19, 2026.

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