1099 vs W-2 Calculator: Same Pay, Different Paycheck (2026)
Enter your 1099 income and the W-2 salary you're comparing it against. You get both take-homes side by side — FICA vs self-employment tax, 2026 federal brackets, QBI, your state — and the 1099 amount that exactly matches the W-2 offer after taxes.
Why the same gross pay nets different paychecks
On a W-2, your employer quietly pays half of your Social Security and Medicare — 7.65% you never see. Go 1099 and both halves land on you: 15.3% self-employment tax on 92.35% of net profit (Social Security capped at $184,500 in 2026, plus 0.9% extra Medicare above $200,000 single / $250,000 married). Nothing is withheld, so the bill arrives as quarterly estimated payments.
But 1099 isn't simply "7.65% worse." You deduct half the SE tax, every legitimate business expense, and — for most freelancers — 20% of qualified business income (§199A). Those three deductions claw back most of the gap.
What tax parity actually looks like in 2026
The 1099 income that matches a W-2 salary after taxes, in this model (single filer, QBI applied, no expenses):
| W-2 salary | Texas — 1099 equivalent | California — 1099 equivalent | New York — 1099 equivalent |
|---|---|---|---|
| $60,000 | $63,154 | $63,111 | $63,084 |
| $90,000 | $92,102 | $91,893 | $91,837 |
| $120,000 | $122,463 | $122,099 | $122,090 |
Surprised it's only 2–5%? That's the QBI deduction doing its job. The catch: these numbers ignore benefits. An employer health plan, a 401(k) match and paid vacation aren't in any tax table — price them into your rate before you accept a 1099 offer at "the same money."
Converting a W-2 salary into a contract rate
Start from tax parity above, then add what you're giving up: your own health premium, the retirement match you'll fund yourself, paid days off (a W-2 year of work is ~230–250 billable days, not 260), gear and software, and unpaid gaps between clients. That — not the tax math — is why experienced contractors quote well above the salary-equivalent hourly number. Use the calculator for the tax floor; negotiate the rest.
Related
Set your quarterly set-aside once you've chosen 1099 · check the state picture in the state-by-state guide · or read every formula on the methodology page.
Frequently asked questions
How much more should I charge on 1099 than a W-2 salary?
For pure tax parity in 2026 the premium is often just 2–5% (see the table above) thanks to the half-SE and QBI deductions. The 1.2–1.5× rules of thumb you hear exist to cover benefits and unpaid time — add those on top of the tax floor this calculator gives you.
Why is my 1099 paycheck taxed more than a W-2 paycheck?
You pay both halves of Social Security/Medicare (15.3% on 92.35% of net profit) and nothing is withheld for you. Offsetting deductions — half the SE tax, expenses, QBI — recover most of the difference by year-end, but the cash-flow feel is very different.
Is it better to be a 1099 contractor or a W-2 employee?
After taxes alone the gap is small in 2026. The real decision is benefits vs freedom: employer health cover, match and paid leave against expense write-offs, bigger retirement contribution room (SEP-IRA / solo 401(k)), rate control and multiple clients. This page settles the tax half with your real numbers.
Does the calculator include employer benefits?
No, and it flags that next to every result. Benefits vary too much to fake with an average — the W-2 column is employee-side taxes only, which makes it conservative in favor of 1099.