1099 vs W-2
2026 Tax Year1099 vs W-2 Calculator: Which Job Offer Pays More?
Wondering whether to take a W-2 job or a 1099 contract? The tax implications aren't always obvious. As a 1099 contractor you pay higher self-employment taxes, but you also gain access to tax deductions W-2 employees can't use — like the self-employed health insurance deduction and the QBI deduction.
This calculator compares the numbers side by side — salary, hourly rate, healthcare costs, time off, and all applicable taxes — so you can see exactly which option puts more money in your pocket.
Note: Results are estimates for side-by-side comparison only, not a complete tax calculation. Your actual tax obligation depends on many factors outside the scope of this comparison.
Compare Your Offers
Applies to both W-2 and 1099
Business expenses, itemized deductions, etc.
Business expenses, itemized deductions, etc. Applies equally to both sides.
Side-by-Side Comparison
1099 pays more
Difference: $5,078.92 / year
W-2
$73,808.68
leftover after tax & healthcare
1099
$78,887.60
leftover after tax & healthcare
Breakeven Rate
The minimum 1099 rate to match your W-2 offer
$55.78/hr
Your current rate is $4.22/hr above breakeven
Gross Income
Health Insurance Premium
FICA / Self-Employment Tax
Self-Employed Tax Deduction
SE Health Insurance Deduction
Adjusted Gross Income
Income Tax (Federal + California)
Leftover Income
Results are estimates for side-by-side comparison only — not a complete tax calculation. Income tax includes federal and California state tax (2026 brackets). See Methodology below for data sources and limitations.
Gross Income
Health Insurance Cost
Social Security
Medicare
Self-Employment Tax(15.3% on 92.35% of net earnings)
Half-SE Deduction(Above-the-line)
SE Health Insurance Deduction(IRC §162(l))
Adjusted Gross Income
Standard Deduction(Single filer (2025))
QBI Deduction(20% of qualified income)
Federal Taxable Income
Federal Income Tax(Eff. rate: 13.2% / 8.6%)
California State Tax
After-Tax + After-Healthcare
W-2 gross income: $100000.00
W-2 after-tax income (after healthcare): $73808.68
1099 gross income: $112800.00
1099 after-tax income (after healthcare): $78887.60
Breakeven hourly rate: $55.78
Popular State Comparisons
See how 1099 vs W-2 take-home pay differs in the most-searched states. Each page pre-fills the calculator with state-specific tax data.
- CaliforniaHas state taxCompare at $50K · $100K · $150K · $200K · $300K
- TexasNo state taxCompare at $50K · $100K · $150K · $200K · $300K
- New YorkHas state taxCompare at $50K · $100K · $150K · $200K · $300K
- FloridaNo state taxCompare at $50K · $100K · $150K · $200K · $300K
- WashingtonNo state taxCompare at $50K · $100K · $150K · $200K · $300K
- IllinoisHas state taxCompare at $50K · $100K · $150K · $200K · $300K
- PennsylvaniaHas state taxCompare at $50K · $100K · $150K · $200K · $300K
- MassachusettsHas state taxCompare at $50K · $100K · $150K · $200K · $300K
- New JerseyHas state taxCompare at $50K · $100K · $150K · $200K · $300K
- ColoradoHas state taxCompare at $50K · $100K · $150K · $200K · $300K
From the Blog
July 8, 2026
W-2 vs 1099 After Taxes: What's the Real Take-Home Difference?
A deep-dive comparison covering self-employment tax, QBI deduction, state income tax, benefits, and the breakeven hourly rate — with real worked examples.
Read more →