Enter your W-2 offer. We show the hourly rate a contractor needs to come out equally well off.
Required 1099 rate at different billable percentages.
Many simple tools assume you bill every working hour, ignore the QBI deduction and skip state tax. We include all three and solve for equal take-home after tax, so our number is often higher. Check it yourself below.
Federal 2026: IRS Rev. Proc. 2025-32. Social Security wage base $184,500 (SSA). California uses 2025 schedules (FTB) with 2026 SDI of 1.3% (EDD). New York 2026 from Form IT-2105-I. Texas and Florida have no state income tax. Standard deduction only, one job, no other income. Local taxes are not calculated except NYC and the NY payroll tax. California and New York are conservative: no half self-employment tax deduction on the state return. New York recapture is modeled for incomes up to about $223,400 using the 2025 IT-201 worksheet steps with the 2026 rate of 5.9%, to be re-checked when the 2026 form is published; higher incomes are not modeled. This is an estimate, not tax advice. Verified figures are being finalized before launch.
It takes a W-2 salary and shows the hourly rate you would need as a 1099 contractor to take home the same money after tax and replace the benefits you lose.
Dividing by 2,080 hours is not enough. Work out your after-tax take-home, add the benefits you would pay for yourself, then find the revenue that leaves that amount after self-employment tax and income tax. Divide it by your billable hours. A $95,000 salary is $45.67 an hour by simple division, but about $67.47 an hour as a contractor in Texas with our default assumptions.
Switch the calculator to I have a 1099 rate. Enter your rate, state, filing status and schedule, and it finds the W-2 salary that leaves you with the same take-home after tax and benefits.
It is Social Security (12.4% on profit up to $184,500 in 2026) plus Medicare (2.9%), charged on 92.35% of your net profit. Half of it is deductible when figuring income tax. An extra 0.9% Medicare tax applies above $200,000 for single filers and $250,000 for married filing jointly.
The qualified business income deduction lets many self-employed people deduct up to 20% of their qualified business income from federal taxable income. It is limited to 20% of taxable income and phases out at higher incomes. You can turn it off in the calculator to see the difference.
Generally yes, if you expect to owe at least $1,000. No one withholds tax from contractor income, so you usually pay estimated tax in installments during the year. The calculator shows annual amounts, not payment dates.
Yes. Texas and Florida have no state income tax. California has income tax and 1.3% disability insurance on W-2 wages. New York adds its own brackets, city tax for New York City residents and payroll items.
It is an estimate based on 2026 figures from official sources, checked against independent calculations. It is not tax advice, and a licensed professional has not yet reviewed the methodology. Confirm important decisions with a tax professional.
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