1099 vs W-2 Calculator

How this calculator works

A $100,000 W-2 salary and $100,000 in 1099 income are not the same money. The W-2 employee's employer quietly pays half of Social Security and Medicare (7.65%) behind the scenes; the 1099 contractor pays both halves themselves through self-employment tax (15.3%), which is why equal gross pay almost always leaves the contractor with less take-home. This 1099 vs W-2 calculator runs both scenarios with 2026 tax law: enter the gross pay, filing status and a flat state rate, and it shows each side's federal income tax, payroll taxes and take-home pay, plus the number that matters most in negotiations - the break-even multiplier, how much more the 1099 offer must pay to match the W-2.

The multiplier is the practical output. At $100,000, a single filer typically needs the 1099 rate to be about 8–10% higher just to break even on taxes - before accounting for the benefits W-2 workers get (employer health insurance, 401(k) match, paid time off, unemployment insurance). Contractors also deduct business expenses and half of self-employment tax, which narrows the gap slightly, and the calculator accounts for that deduction. Use the break-even gross when comparing a job offer against freelance work, or flip it around: if a client offers a contract rate, divide by the multiplier to see the equivalent W-2 salary. Remember this covers taxes only; add the dollar value of benefits to the W-2 side for the full comparison.