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Tool 01 of 07

1099 vs W2 Tax Calculator — Compare Take-Home Pay

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.

This free 1099 vs W2 calculator gives you a side-by-side dollar comparison, not just percentages. Enter your gross income once and the W2 vs 1099 tax calculator handles the rest — self-employment tax, the SE deduction, federal and state income tax, employer benefits, and 401k match. Use it when evaluating a job offer, negotiating a contract rate, or deciding whether going 1099 makes financial sense.

How to use this calculator
1

Enter the same gross income for both sides — either the contract amount or the salary offer.

2

Adjust your federal and state effective tax rates, plus the W2 benefits and 401k match value.

3

The comparison updates instantly — see which option puts more money in your pocket.

Your numbers

Live results
$

Enter the same amount for both sides — contract income or salary before taxes.

%

Your effective rate — not marginal. 22% for ~$44k–$95k, 24% for ~$95k–$200k.

%

TX, FL, WA, NV = 0%. CA ≈ 9.3%. NY ≈ 6.85%. Enter 0 if none.

$

What your employer pays for health, dental, vision, and life insurance. Typical: $8,000–$15,000/yr.

%

Percentage of salary your employer matches in 401k. Common: 3–6%. Enter 0 if none.

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 questions
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.