💰 Finance
W-2 vs 1099 Calculator
Compare take-home pay as an employee versus independent contractor — and find the 1099 rate that equals your W-2 salary.
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⚠️ Estimates based on 2024 federal tax rates. Texas has no state income tax. Does not account for all deductions or personal tax situations. Consult a tax professional.
Key differences: W-2 vs 1099
As a W-2 employee, your employer pays half of FICA taxes (7.65%). As a 1099 contractor, you pay the full self-employment tax (15.3%) — but you can deduct half of it and your business expenses.
The 20% QBI deduction (Section 199A) may also apply to 1099 income for qualifying businesses, reducing taxable income further.
SE Tax = net 1099 income × 15.3% (up to SS wage base)
SE Tax Deduction = SE Tax × 50%
Taxable 1099 Income = gross − expenses − SE deduction − standard deduction
SE Tax Deduction = SE Tax × 50%
Taxable 1099 Income = gross − expenses − SE deduction − standard deduction