Tax calculator · 2026
1099 vs W-2, from both sides
Compare what a worker keeps after federal taxes and what the same engagement costs an employer. See both breakeven points in one free calculator.
- 2026 rules
- All 50 states + DC
- Free · no signup
On $90,000 gross · effective tax 19.8%
Why equal gross pay is not equal value
A contractor pays the full 15.3% self-employment tax instead of an employee's 7.65% FICA, so at equal gross pay a 1099 worker generally keeps less. To net the same take-home, they have to bill more.
The worker breakeven estimates the contract needed to match W-2 take-home. The employer breakeven is different: it loads the W-2 salary with payroll taxes, benefits, workers' compensation, and overhead.
Choose the comparison you need
Convert a salary directly with the equivalent 1099 rate calculator, or model the full employer bill in the hiring cost calculator.
For the non-financial trade-offs, read the complete W-2 versus 1099 cost analysis and review the worker-classification risk guide.
Common questions
1099 vs W-2 tax FAQ
Does a 1099 contractor pay more tax than a W-2 employee?
On the same gross pay, yes. A W-2 employee pays 7.65% FICA and the employer pays the other 7.65%. A 1099 contractor pays both halves as self-employment tax (15.3% on 92.35% of net profit), though they can deduct half of it before income tax. That is why a contractor has to bill more than a salary to take home the same amount.
What is the breakeven 1099 rate?
Two breakevens matter. For the worker, it is the contract amount that nets the same take-home as a W-2 salary (always higher than the salary). For the employer, it is the contract that equals the fully-loaded W-2 cost. This tool shows both.
What payroll taxes does an employer pay on a W-2 in 2026?
6.2% Social Security on the first $184,500, 1.45% Medicare on all wages, 0.6% FUTA on the first $7,000, plus the state's unemployment insurance.
How accurate is the take-home estimate?
The worker side is an estimate. It uses official 2026 federal brackets and the standard deduction, but excludes state income tax, the QBI deduction, and credits. The employer side uses official federal rules and editable state planning defaults.
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