1099 vs W-2

2026 Tax Year

1099 vs W-2 Calculator: Which Job Offer Pays More?

Wondering whether to take a W-2 job or a 1099 contract? The tax implications aren't always obvious. As a 1099 contractor you pay higher self-employment taxes, but you also gain access to tax deductions W-2 employees can't use — like the self-employed health insurance deduction and the QBI deduction.

This calculator compares the numbers side by side — salary, hourly rate, healthcare costs, time off, and all applicable taxes — so you can see exactly which option puts more money in your pocket.

Note: Results are estimates for side-by-side comparison only, not a complete tax calculation. Your actual tax obligation depends on many factors outside the scope of this comparison.

Compare Your Offers

W-2 Offer
$
$/mo

Your portion (employer subsidizes the rest)

1099 Offer
$/hr
$/mo

Self-purchased (no employer subsidy)

Work Schedule

Vacation + holidays + sick

Days off reduce 1099 income (no work = no pay). W-2 salary is unaffected.

$

Business expenses, itemized deductions, etc. Applies equally to both sides.

Side-by-Side Comparison

1099 pays more

Difference: $5,078.92 / year

W-2

$73,808.68

leftover after tax & healthcare

1099

$78,887.60

leftover after tax & healthcare

Breakeven Rate

The minimum 1099 rate to match your W-2 offer

$55.78/hr

Your current rate is $4.22/hr above breakeven

Gross Income

W-2$100,000.00
1099$112,800.00

Health Insurance Premium

W-2−$1,800.00
1099−$6,000.00

FICA / Self-Employment Tax

W-2−$7,512.30
1099−$15,938.13

Self-Employed Tax Deduction

W-2
1099+$7,969.07

SE Health Insurance Deduction

W-2
1099+$6,000.00

Adjusted Gross Income

W-2$98,200.00
1099$98,830.93

Income Tax (Federal + California)

W-2−$16,879.02
1099−$11,974.27

Leftover Income

W-2$73,808.68
1099$78,887.60

Results are estimates for side-by-side comparison only — not a complete tax calculation. Income tax includes federal and California state tax (2026 brackets). See Methodology below for data sources and limitations.

Gross Income

W-2 $100,000.001099 $112,800.00

Health Insurance Cost

W-2 −$1,800.001099 −$6,000.00

Social Security

W-2 −$7,512.301099

Medicare

W-2 Included above1099

Self-Employment Tax(15.3% on 92.35% of net earnings)

W-2 1099 −$15,938.13

Half-SE Deduction(Above-the-line)

W-2 1099 +$7,969.07

SE Health Insurance Deduction(IRC §162(l))

W-2 1099 +$6,000.00

Adjusted Gross Income

W-2 $98,200.001099 $98,830.93

Standard Deduction(Single filer (2025))

W-2 −$15,0001099 −$15,000

QBI Deduction(20% of qualified income)

W-2 N/A1099 −$16,766.19

Federal Taxable Income

W-2 $83,200.001099 $67,064.74

Federal Income Tax(Eff. rate: 13.2% / 8.6%)

W-2 −$13,218.001099 −$9,668.24

California State Tax

W-2 −$3,661.021099 −$2,306.03

After-Tax + After-Healthcare

W-2 $73,808.681099 $78,887.60

W-2 gross income: $100000.00

W-2 after-tax income (after healthcare): $73808.68

1099 gross income: $112800.00

1099 after-tax income (after healthcare): $78887.60

Breakeven hourly rate: $55.78

Popular State Comparisons

See how 1099 vs W-2 take-home pay differs in the most-searched states. Each page pre-fills the calculator with state-specific tax data.

View all 51 states →

From the Blog

July 8, 2026

W-2 vs 1099 After Taxes: What's the Real Take-Home Difference?

A deep-dive comparison covering self-employment tax, QBI deduction, state income tax, benefits, and the breakeven hourly rate — with real worked examples.

Read more →