W-2 vs 1099 Comparison Calculator
Compare take-home pay as a W-2 employee vs 1099 contractor. Find the equivalent 1099 rate to match your W-2 salary.
W-2 Net Income
$68,500.00
1099 Net Income
$64,894.70
W-2 Advantage
$3,605.30
Break-Even 1099 Rate
$105,509.57/yr
$50.73/hr
W-2 Equivalent Hourly
$48.08/hr
Side-by-Side Comparison
| W-2 | 1099 | |
| Gross Income | $100,000.00 | $100,000.00 |
| FICA / SE Tax | $7,650.00 | $14,129.55 |
| Federal Income Tax | $11,850.00 | $8,975.75 |
| Total Tax | $19,500.00 | $23,105.30 |
| Health Insurance | $6,000.00 | $6,000.00 |
| Retirement | $6,000.00 | $6,000.00 |
| Net Take-Home | $68,500.00 | $64,894.70 |
Hidden Costs of 1099
| Additional SE Tax (vs W-2 FICA) | $6,479.55 |
| Employer FICA You Lose | $7,650.00 |
| No employer health subsidy | Varies |
| No employer 401(k) match | Varies |
| No paid time off / benefits | Varies |
| Quarterly estimated tax payments | Required |
Break-Even 1099 Rate
To match your W-2 take-home of $68,500.00, you would need to earn at least $105,509.57 as a 1099 contractor ($50.73/hr). This accounts for additional SE tax but does not include the value of employer benefits like health insurance subsidies, 401(k) match, or paid time off.
Use the W-2 vs 1099 Comparison Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
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