2026 · live calculation

1099 vs W-2 Calculator

A contractor rate must cover both halves of FICA (self-employment tax) and benefits. Compare realistic net outcomes side by side.

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Frequently asked questions

Why do contractors pay more tax at the same income?

Self-employed workers pay both the employee and employer halves of Social Security and Medicare (15.3% total, the SE tax), though half of it is deductible.

What rate should I charge as a 1099?

A common heuristic is W-2 hourly × 1.25–1.4 to cover SE tax, benefits, unpaid time and risk.

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