WhichPays

1099 vs W-2 Salary Comparison

Compare job offers after federal tax, state tax, FICA, self-employment tax, and the QBI deduction — find your breakeven hourly rate.

Compare Your Offers

$
$/hr

Default: 40 hrs/week

Default: 52 weeks/year

Breakeven Hourly Rate

The minimum 1099 rate to match your W-2 offer

$46.83/hr

Side-by-Side Comparison

1099 pays more

Difference: $22,751.63 per year

W-2

$70,460.08

1099

$93,211.71

Tax Breakdown

Gross Income
W-2$95,000.00
1099$135,200.00
Federal Income Tax
W-2$12,514.00
1099$14,388.12
FICA / Self-Employment Tax
W-2$7,267.50
1099$19,103.15
California State Tax
W-2$4,758.42
1099$8,497.02
QBI Deduction
W-2N/A
1099-$22,129.68
Total Tax
W-2$24,539.92
1099$41,988.29
After-Tax Income
W-2$70,460.08
1099$93,211.71

Qualified Business Income (QBI) deduction: up to 20% of 1099 net business income — a tax advantage unique to independent contractors.

W-2 gross income: $95000.00

W-2 after-tax income: $70460.08

1099 gross income: $135200.00

1099 after-tax income: $93211.71

Breakeven hourly rate: $46.83