1099 vs W-2 Calculator: Contractor or Employee
Compare a 1099 contract with a W-2 job in 2026: take-home pay after taxes, benefits, paid days off and the 1099 hourly rate that matches the salary.
Federal taxes for 2026. As a 1099 contractor you pay both halves of FICA, buy your own health insurance and retirement savings, and are paid only for the hours you work; the W-2 salary already covers paid days off. State taxes are not included.
What it does
A W-2 employee has taxes withheld, the employer pays half of FICA and usually adds health insurance, a 401(k) match and paid time off. A 1099 contractor is paid more per hour but pays all of that alone. The calculator compares the take-home value of both offers and finds the hourly rate where they are equal.
How to use it
- Choose your filing status and type the W-2 salary, the health insurance, the 401(k) match and the paid days off.
- Type the 1099 hourly rate, the hours per year and the expenses you would have.
- See which offer is worth more and the 1099 rate that matches the W-2 job.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
Is 1099 or W-2 better?
An 80,000 W-2 job with 600 a month of health insurance, a 4% match and 15 paid days off is worth 75,510 after federal tax. At 50 an hour for 1,960 hours, the 1099 job leaves 74,855: 655 less.
What 1099 rate equals a W-2 salary?
In the example, 50.48 an hour, 1.31 times the W-2 hourly pay of 38.46. A common rule is to ask for 1.25 to 1.4 times.
What do 1099 contractors pay that employees do not?
The employer half of Social Security and Medicare, 7.65% of pay, plus health insurance, retirement savings and unpaid time off. In exchange they deduct business expenses and get the 20% QBI deduction.
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