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W-2 vs 1099 Calculator

Estimate and compare take-home pay as a W-2 employee vs a 1099 contractor using a simplified model and a tax rate you provide.

Informational only (simplified estimate)

This tool uses a simplified U.S.-focused model and a tax rate estimate you provide. It does not account for all tax rules or benefits.

  • Income tax is estimated using your effective rate % (no federal/state tables).
  • Payroll taxes are estimated without wage-base caps or additional Medicare tax.
  • Not tax or legal advice.

Your inputs

Adjust inputs to compare scenarios.

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Tax estimate

Effective income tax rate % applied to taxable income (income tax only; payroll taxes are estimated separately).

W-2 scenario

Salary and optional employer benefits value (health, match, etc.).

1099 scenario

Gross revenue and deductible business expenses.

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Frequently Asked Questions

Is this calculator tax advice?

No. This calculator is for informational purposes only and is not tax or legal advice. It uses a simplified model and a tax rate estimate you provide.

What does “effective income tax rate %” mean?

It’s an estimate of your combined income tax rate (often federal + state + local) applied to taxable income. Because tax rules vary widely, this tool asks you to provide your own estimate.

Does this include deductions, credits, or QBI?

No. This MVP does not model deductions, credits, QBI, retirement plan nuances, or other scenarios. Use the result as a rough planning estimate.

Why does 1099 show higher payroll tax?

In the U.S., contractors often pay an estimated self-employment tax that covers both the employee and employer share of Social Security and Medicare. This tool does not model wage-base caps or additional Medicare tax.

What should I do with the break-even number?

It’s a rough estimate of the 1099 gross amount you might need (before expenses) to match the W-2 take-home estimate, given your inputs. Use it as a starting point for negotiation.

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