Thrivelance Tools
See how the same income compares as a 1099 contractor versus a W-2 employee. We estimate take-home pay after federal tax for each, and work out the 1099 rate you'd need to match a salary once self-employment tax is covered. 2025 tax year.
Figures update as you type. Both are federal estimates using the standard deduction.
W-2 take-home
$80,000
After employee FICA + income tax.
1099 take-home
$74,000
After self-employment + income tax.
Difference
W-2 +$6,000
Gap in take-home at this income.
1099 rate to match W-2
$108,000
Charge this to net the same.
A W-2 employee splits Social Security and Medicare with their employer, paying just 7.65%. A 1099 contractor is both employer and employee, so they owe the full 15.3% self-employment tax — though half of it is deductible against income tax.
To take home what a salaried employee does, a contractor must cover the extra payroll tax plus benefits they fund themselves. The “rate to match” figure is the starting point — then add health insurance, retirement, and unpaid time off.
Contractors can deduct legitimate business costs — software, equipment, home office, mileage — which lowers taxable profit. Enter them above to see the effect on your 1099 take-home and tax.
For the full breakdown of the contractor side, use the Self-Employment Tax Calculator, then plan payments with the Quarterly Tax Calculator. Worried about classification? Try the Misclassification Risk Checker.
Common questions about this calculator.
A W-2 employee pays half of FICA (7.65%) while the employer pays the other half. A 1099 contractor pays the full 15.3% self-employment tax on net profit, though half of it is deductible against income tax.
Enough to cover the extra payroll tax and the benefits an employer would otherwise provide. The calculator's 'rate to match' figure covers the tax gap; add health insurance, retirement, and unpaid time off on top.
Yes. Contractors can deduct legitimate business expenses, which lowers taxable profit and self-employment tax. Enter your expected expenses to see the effect on 1099 take-home.
It's a federal estimate using 2025 brackets and the standard deduction. It excludes state tax, credits, the QBI deduction, and benefit values. Use it for comparison and confirm with a tax professional.
