Is that contract offer actually a raise? Compare the same gross pay as a 1099 contractor vs a W-2 employee — in plain English. Nothing leaves your browser: all calculations happen on your device.
📋 1099 contractor
- Self-employment tax$14,695
- Federal income tax$12,434
- Effective tax rate26.1%
🏢 W-2 employee
- Employee FICA$7,956
- Federal income tax$14,050
- Effective tax rate21.2%
Show the math
Federal income tax uses the 2026 brackets on (gross − standard deduction). As a 1099 contractor you pay both halves of payroll tax: 15.3% self-employment tax on 92.35% of net earnings (12.4% Social Security up to the $184,500 wage base + 2.9% Medicare, plus 0.9% over $200k/$250k) — but half of it is deductible, which lowers your income tax. As a W-2 employee you pay 7.65% FICA (your employer quietly pays the other half). That’s the whole gap: the extra half of payroll tax, partly offset by the deduction. State taxes, benefits, and business expenses aren’t included.