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1099 vs W-2 True Comparison

See the real take-home pay and true hourly rate for W-2 employment vs 1099 contracting — side by side, with nothing hidden.

15.3%SE tax you don't see
$0Employer benefits on 1099
25-40%Premium you should charge

The problem: A 1099 contractor earning "$50/hour" and a W-2 employee earning "$50/hour" take home wildly different amounts. The 1099 pays double FICA (15.3% vs 7.65%), buys their own health insurance, funds their own retirement, and gets no paid time off. Most comparison tools only handle a single income source — but the reality in 2026 is that millions of workers have BOTH a W-2 day job and 1099 side income.

This tool gives you: the honest truth. Side-by-side take-home, real hourly rates after ALL deductions, the exact break-even 1099 rate to match your W-2, and what your employer actually pays on your behalf. The "DoorDash $25/hr is actually $14/hr" moment.

100% free forever No login required No data leaves your browser Break-even calculator
Filing status
Single
Married Filing Jointly
🏢
W-2 Employment
Your day job — salary, hourly wages, full-time or part-time
W-2 uses 50 working weeks (2 weeks PTO)
💻
1099 Self-Employment
Freelance, consulting, contract work, gig income
1099 uses 52 weeks (no employer PTO)
⚙️
Optional Adjustments
Health insurance, retirement — costs that differ between W-2 and 1099
Take-Home Pay
W-2 Employee
$0
$0/month
1099 Contractor
$0
$0/month
W-2 Real Hourly
$0/hr
After taxes, per actual hour
1099 Real Hourly
$0/hr
After taxes & expenses
Effective Tax Rate
0%
W-2 vs 0% 1099
🔍 The Truth Table
Category W-2 1099
Break-even 1099 hourly rate
$0/hr
To match your W-2 take-home, you need to charge this rate
💡 What your employer actually pays
Where each dollar goes
W-2 Employee
1099 Contractor

Disclaimer: This calculator provides estimates for educational purposes only. It is not tax, legal, or financial advice. Calculations use simplified models — actual liability may differ due to AMT, NIIT, itemized deductions, tax credits, and other factors. W-2 calculations assume employer-provided health insurance and standard FICA withholding. State tax calculations use 2026 approximations and may not reflect all local taxes or surcharges. Always consult a qualified tax professional for advice specific to your situation.

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