1099 vs W-2 Calculator
Compare net take-home pay between a 1099 contractor and a W-2 employee at the same gross salary.
Built on real 2024 IRS tax brackets, the 15.3% SECA tax, and state tax for all 50 states.
Your situation
Compare W-2 vs. 1099 net take-home at the same gross pay.
Why this matters: A 1099 contractor pays the full 15.3% self-employment tax (both halves of Social Security + Medicare). A W-2 employee pays only 7.65% — the employer pays the other half. Add lost health insurance and 401k matching, and the same gross pay leaves a 1099 worker with meaningfully less take-home cash.
W-2 take-home
$58,357
1099 take-home
$48,292
W-2 employee breakdown
Gross salary$80,000
FICA (7.65%)− $6,120
Federal income tax− $9,441
State tax (9.3%)− $6,082
Net take-home cash$58,357
+ Employer benefits value$8,000
Total compensation value$66,357
1099 contractor breakdown
Gross 1099 revenue$80,000
Business expenses− $3,000
Self-paid health− $7,200
Retirement contribution− $0
Self-employment tax (15.3%)− $10,880
Federal income tax− $6,000
State tax (9.3%)− $4,628
Net take-home cash$48,292
The verdict
Cash gap (W-2 − 1099)$10,064
True gap incl. benefits$18,064
1099 gross needed to match W-2$109,925
1099 take-home as % of W-282.8%
Rule of thumb: to be financially neutral, a 1099 rate should be roughly 25–35% higher than the equivalent W-2 salary. That covers the extra 7.65% employer FICA, lost benefits, and unpaid time off.
Related calculators
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