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tool / 01 1099 vs W2 Take-Home Calculator
See exactly how much you keep as a contractor vs employee at the same gross income — after SE tax, income tax, and the real value of benefits.
Your numbers
The total contract income (1099) or salary (W2) before any deductions. Enter the same number for both sides of the comparison.
$
Your effective federal rate — not marginal. 22% brackets covers roughly $44k–$95k. Use 24% for $95k–$200k. Check IRS tax tables for precision.
%
TX, FL, WA, NV = 0%. CA ≈ 9.3%. NY ≈ 6.85%. See your state's revenue department for your actual rate.
%
What your employer pays toward health, dental, vision, and life insurance. Typical employer contribution: $8,000–$15,000/yr. Check your offer letter.
$
Percentage of salary your employer matches in 401k. Common range: 3–6%. Enter 0 if none or if comparing equally for simplicity.
%
1099 contractor
$—
annual take-home
SE tax —
Income tax —
W2 employee
$—
total comp value
FICA —
Benefits + 401k —
difference
Enter your numbers to see the comparison.
breakdown
1099
W2
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frequently asked
Why is 1099 take-home lower than W2 at the same gross?
As a W2 employee, your employer pays half of FICA taxes (7.65%). As a 1099 contractor you pay both halves — called self-employment (SE) tax — totaling 15.3% on 92.35% of your net income. That gap is the core cost of being self-employed.
What is the SE tax deduction?
The IRS lets 1099 contractors deduct 50% of their SE tax from gross income before calculating federal income tax. This calculator applies that deduction automatically, which is why the federal tax figure for 1099 is slightly lower despite the SE tax burden.
Should I include health insurance I pay myself as a 1099?
Yes — self-employed health insurance premiums are fully deductible if you are not eligible for employer coverage. For a clean comparison, enter the annual value of the employer plan you would have on W2 in the "Annual W2 benefits value" field.
Does this calculator handle state taxes correctly?
It applies your entered state rate to gross income as a flat estimate. Some states have complex bracket structures, deductions for SE tax, or no income tax at all. Treat the result as a reasonable estimate, not a tax filing.