Tax calculator · 2026
1099 vs W-2, from both sides
One number rarely tells the whole story. Switch perspectives to see what a worker keeps after taxes as a W-2 employee versus a 1099 contractor, and what the same hire costs an employer once payroll taxes are added. The breakeven shows where the two meet.
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 keeps less. To net the same take-home, they have to bill more — and for an employer, the equivalent 1099 rate is the fully-loaded cost of the W-2 hire.
See the full hiring cost calculator, the cost-focused which-is-cheaper analysis, or your state's payroll-tax page.
W-2 take-home paySingle
/yr
On $90,000 gross · effective tax 19.8%
W-2 take-home
$72,145
1099 take-home
$67,712
At the same $90,000 gross a 1099 keeps $4,433 less (full self-employment tax). To match W-2 take-home, bill $96,775.
Perspective
$
Filing status
Estimate · federal only · excludes state tax, QBI & credits
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 $176,100, 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 projected 2026 federal brackets and the standard deduction and models self-employment tax correctly, but it excludes state income tax, the QBI deduction, and credits. The employer side uses exact IRS and state rates.