W-2 vs 1099 Calculator 2026 — Compare After-Tax Pay
Compare two separate offers: a W-2 salary and a 1099 contract. Enter contractor revenue or an hourly schedule, business expenses, and optional personal costs to see annual cash remaining.
Federal-only planning estimate for 2026. State and local taxes, QBI, credits, retirement contributions, and other deductions are excluded. Optional personal costs are after-tax cash costs, not tax deductions. This is not a combined W-2 plus 1099 tax return.
Compare your offers
Business expenses reduce 1099 profit before federal income and self-employment tax. This estimate requires expenses no greater than revenue.
Optional personal costs after tax
For insurance or benefits you pay personally. These amounts do not lower taxable income.
Comparison results
Annual cash difference after modeled taxes and costs
$8,652
1099 offer leaves more under these inputs.
| Line item | W-2 | 1099 |
|---|---|---|
| Gross salary / revenue | $90,000 | $120,000 |
| Business expenses | $0 | $10,000 |
| Federal income tax | $10,970 | $13,660 |
| Social Security | $5,580 | $12,597 |
| Medicare | $1,305 | $2,946 |
| Additional Medicare | $0 | $0 |
| Personal after-tax costs | $0 | $0 |
| Annual cash remaining | $72,145 | $80,797 |
1099 net business income: $110,000. Half of regular self-employment tax deducted from 1099 federal taxable income: $7,771. Employer FICA is excluded from W-2 employee costs.
How the comparison works
For W-2 pay, we subtract federal income tax plus the employee share of Social Security and Medicare. For a 1099 offer, we subtract business expenses, federal income tax, and self-employment tax. The 1099 tax base is 92.35% of net business profit; Social Security stops at the 2026 wage base. We then subtract any personal after-tax costs from each offer.
Actual offers can differ in paid time off, insurance, retirement matching, equipment, and job stability. Put measurable personal cash costs in the optional fields and compare non-cash benefits separately.
Rules: IRS Topic 554, Self-Employment Tax, Schedule SE instructions, IRS Topic 560, Additional Medicare Tax, and Form 8959 instructions. See our methodology for the federal brackets and limitations.
Related tools
Frequently asked questions
Does this add my W-2 and 1099 income together?
No. This compares two separate job offers. If you earn W-2 wages and 1099 income in the same year, the shared Social Security wage base and Additional Medicare threshold require a combined calculation that this page does not provide.
Why can the 1099 tax be higher at the same pay?
A W-2 employee pays the employee share of Social Security and Medicare, while an independent contractor generally pays both shares through self-employment tax. The contractor can deduct half of regular self-employment tax when calculating federal income tax.
Are health insurance and other personal costs tax deductions here?
No. Optional personal costs are subtracted after the tax calculation. Business expenses reduce 1099 net profit before the tax calculation. This simplified model does not calculate a self-employed health insurance deduction.
Which taxes are included?
The estimate includes 2026 federal income tax, employee FICA for W-2 wages, and self-employment tax for 1099 profit, including Additional Medicare tax when applicable. It excludes state and local taxes, QBI deductions, credits, and other deductions.