The same money, two tax lives: what a W-2 salary and a 1099 contract actually net in 2026 after every tax layer — and the contractor rate that truly matches a salary.
Break-even 1099 gross: $107,528 (+7.5% over the salary).
| Federal income tax | $13,170 |
| FICA (your 7.65% half) | $7,650 |
| State income tax | $0 |
Plus, invisibly: the employer pays the other 7.65% FICA, unemployment insurance, and usually benefits.
| Self-employment tax (both halves) | $14,130 |
| Federal income tax | $11,616 |
| State income tax | $0 |
No employer half, no withholding — quarterly estimates instead, and no benefits unless you buy them.
This page prices taxes exactly; it deliberately does not invent a value for health insurance, retirement matching, paid leave or unemployment cover. For most employees those are worth 15–30% on top of salary — a contractor rate that merely matches the tax break-even is still a pay cut.
Method note: benefits excluded by design and labelled, per this page's model.
The contractor pays both halves of FICA as SE tax — but on 92.35% of profit, and half of it is deductible, which is why the true break-even premium lands near +7.5% rather than the full 15.3%.
Source: IRS Schedule SE (2026).
For taxes alone, about 7–8% at typical incomes — this calculator finds your exact figure. For taxes plus replacing benefits, most advisors start at 20–30%.
Classification is not a choice: it follows the actual working relationship (IRS common-law rules). This page compares offers where each classification is legitimately on the table.
Yes — business-expense deductions, the half-SE deduction (modelled), and potentially the §199A QBI deduction (not modelled; it can narrow the gap further).
1099 vs W-2 for 2026: at the same $100,000 in Texas, the W-2 keeps $79,180 and the 1099 keeps $74,255 — the contractor rate must reach about $107,528 (+7.5%) just to break even, before lost benefits. Any state, any income.
100% free · No sign-up · No daily limits · No watermarks · Processed in your browser — files never leave your device
A tax-exact comparison of W-2 salary and 1099 contractor income for 2026: both nets at the same amount, and the contractor gross that truly breaks even.
In Texas on $100,000 (single): the W-2 keeps $79,180, the 1099 keeps about $73,900, and the break-even contractor gross is about $107,500.
The gap is the employer half of FICA, softened by the 92.35% base and the half-SE deduction — which is why it lands near 7.5%, not 15.3%.
It is the floor for taxes alone. A rate that also replaces benefits is usually 20–30% above the salary.
No — classification follows the working relationship under IRS rules.
What is missing, broken, or could be better on this tool? Tell us — we read every suggestion.
✅ Thanks — your suggestion has been received. Suggestions like yours shape what we build next.