W-2 to 1099 hourly rate in California
California taxes both wages and self-employment profit, and takes state disability insurance from W-2 pay. Both change how much a contractor needs to charge.
What California taxes change
- California income tax runs from 1% to 12.3% across nine brackets. We use the latest published schedules (2025) with the standard deduction of $5,706 for a single filer.
- W-2 employees also pay state disability insurance at 1.3% of wages in 2026. Contractors do not pay it unless they opt in, so it appears only on the W-2 side.
- For state tax we do not subtract half of self-employment tax or apply a QBI deduction on the California return, which keeps the estimate on the cautious side.
Example rates for California
| W-2 salary | W-2 take-home | 1099 rate needed | Yearly revenue |
|---|---|---|---|
| $60,000 | $47,817 | $43.28 | $62,322 |
| $95,000 | $69,685 | $66.28 | $95,445 |
| $150,000 | $101,983 | $103.53 | $149,084 |
Single filer, 20 days off, 40 hours a week, 75% of hours billable (1,440 a year), QBI deduction on, no benefits, no business costs. Change any of these in the calculator.
What this does not cover
- California exemption credits and the extra tax on very high incomes are not modeled.
- Local taxes are not calculated for California. You can enter a manual local rate.
- These are estimates for one job, the standard deduction and no other income. Your own return may differ.
- Retirement savings, an S-corporation election and local taxes outside the ones named are not modeled.
See exactly how every number is built on the methodology page, or run your own numbers in the calculator.
Frequently asked questions
How does California disability insurance affect the rate?
W-2 employees pay state disability insurance of 1.3% of wages in 2026, which lowers their take-home. Contractors do not pay it unless they opt in, so it appears only on the W-2 side of the comparison.
Which California tax schedules does the calculator use?
The latest published schedules, from 2025, with the $5,706 standard deduction for a single filer. We will update them when the 2026 schedules are published.