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calculator · income comparison

1099 vs w-2: which is more lucrative?

Compare your take-home income as a 1099 contractor versus a W-2 employee at the same gross rate.

your scenario

$
$

Software, equipment, marketing, etc.

-$10,667.77less take-home as 1099

15.1% less than W-2

as 1099

$59,841.23

SE tax: $12,716.6

Federal: $10,242.17

State: $7,200

as w-2

$70,509

FICA: $7,650

Federal: $13,841

State: $8,000

what we're not accounting for

  • Benefits: W-2 employers often provide health insurance, 401(k) matching, paid time off.
  • Self-employment consistency: 1099 income may vary month-to-month, while W-2 is stable.
  • Quarterly taxes: 1099s require estimated quarterly payments, which we've included above.
  • Deductions: We used business expenses; home office, vehicle, and other deductions could lower 1099 taxable income further.
  • State variations: Some states have different rules for contractors vs. employees.

track all income types effortlessly

teni handles both 1099 and W-2 income tracking, so you know exactly what you're taking home no matter how you earn.

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Disclaimer: This calculator is for educational purposes only and does not constitute tax or legal advice. Please consult with a credentialed tax professional or CPA before making tax decisions.