1099 vs W-2 Tax Comparison
Compare a 2026 single-filer federal 1099 estimate with a 2026 W-2 federal income and employee payroll-tax estimate.
Quick answer
1099 vs W-2 Tax Comparison helps estimate the result from your inputs in the browser. Use the output as a planning number, then compare it with your records, provider terms, or official guidance before making a final decision.
2026 single-filer federal planning comparison. It excludes state tax, credits, QBI, other income, benefits, insurance, PTO, retirement match, unemployment protection, and worker-classification rules. Verify the complete offer separately.
Calculator
Results update as you type
1099 minus W-2 after-federal gap
2026 single-filer federal comparison assuming no other income or W-2 wages on the contractor side. It excludes state tax, credits, QBI, benefits, PTO, insurance, retirement match, unemployment protection, and worker-classification rules.
Breakdown
Compare like with like
Enter the actual contractor receipts and expenses separately from the offered W-2 wages. Equal headline amounts are not equal economic packages; review benefits and business costs outside this federal baseline.
Formula
The math behind the result
1099 net profit = receipts − business expenses
W-2 federal estimate = income tax + employee Social Security + Medicare
Gap = 1099 amount after modeled federal taxes − W-2 amount after modeled federal taxes
How it works
A clean flow from input to answer
- 1Enter contractor gross receipts and ordinary business expenses separately.
- 2Enter the actual annual wages offered for the employee path.
- 3Review the estimated take-home gap before considering benefits, insurance, retirement match, and state-specific rules.
FAQ
Common questions
Is this a real paycheck calculator?
No. It models 2026 federal income tax and employee payroll-tax components for a single filer. It does not model withholding elections, employer payroll, state tax, credits, or a full paystub.
Why compare 1099 and W-2 this way?
Because many offer decisions start with rough cash-flow math. This gives a fast first pass before a deeper payroll or benefits review.
Does this include state taxes or employer benefits?
No. State taxes, healthcare, retirement match, PTO, unemployment coverage, and workers compensation are outside this simplified comparison.
Verification
Official sources, limits, and fixtures
Verified 2026-08-10
Sources
Current limits
- Single-filer federal baseline assuming no W-2 wages.
- Does not include state tax, credits, QBI, other income, withholding, prior-year safe harbor, or full filing-status coverage.
Known fixtures
Expenses reduce SE base
receipts=40000 expenses=10000
Expected: net profit=30000 before 92.35% adjustment
2026 Social Security cap
net earnings above 184500
Expected: 12.4% component capped at 184500 without W-2 wages