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Ballpark TaxEst. 2026 · Free tools

1099 vs W-2 offer comparison

A contract rate and a salary are not comparable numbers. This works out what each package is really worth, and the hourly rate you would need to break even.

Difference

Not enough detail yet

Enter both offers to compare what each is actually worth once tax and benefits are counted.

W-2 net value
1099 net value
Breakeven rate
Breakeven gross
Filing status
W-2 salary offered
Health cover the employer pays for, per yearThe premium they cover, not what comes out of your pay.
Employer 401(k) match
Paid days off included
1099 hourly rate offered
Hours you would actually invoiceBillable hours, not hours worked. Unpaid holiday and sick days come out of this number.
Business expenses you would carry
Health premium you would pay yourself
W-2: payroll tax (your half only)
W-2: federal income tax
W-2: employer match added back
W-2 package value
1099: gross billed
1099: self-employment tax (both halves)
1099: federal income tax
1099: health premium you pay
1099 package value

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Common questions

How much more should a 1099 rate be than a W-2 salary?

Commonly 25 to 50% more, but the honest answer depends on the benefits attached to the salary. Employer-paid health cover and a 401(k) match are worth real money, and as a contractor you pay both halves of payroll tax.

What does a W-2 offer include that a rate does not?

Half of Social Security and Medicare, usually health insurance, often a retirement match, paid holiday and sick leave, unemployment cover, and a notice period. Only the first four show up in this calculation.

How do I convert a salary into an hourly rate?

Not by dividing by 2,080. Use the hours you would actually invoice, which is lower once unpaid time off and non-billable work are removed — this calculator asks for that number directly.

What people use next

Estimates based on published federal rules for tax year 2026. State and local tax is not included. This is general information, not advice about your situation.