2025/26 tax years · all 50 states + DC

1099 vs W-2 Calculator

As a 1099 contractor you pay 7.65% more in payroll taxes than a W-2 employee at the same income. Pick your state to see the real numbers.

15.3%
SE tax for 1099 contractors
7.65%
FICA for W-2 employees
25–30%
higher rate needed to break even

No state income tax

highest take-home
Alaska 0% Florida 0% Nevada 0% New Hampshire 0% South Dakota 0% Tennessee 0% Texas 0% Washington 0% Wyoming 0%

Flat rate states

Arizona 2.50% Colorado 4.40% Georgia 5.39% Idaho 5.70% Illinois 4.95% Indiana 3.00% Iowa 3.80% Kentucky 4.00% Louisiana 3.00% Michigan 4.25% Mississippi 4.40% North Carolina 4.25% Pennsylvania 3.07% Utah 4.55%

Progressive tax states

Alabama up to 5.0% Arkansas up to 3.9% California up to 13.3% Connecticut up to 7.0% Delaware up to 6.6% Hawaii up to 11.0% Kansas up to 5.6% Maine up to 7.1% Maryland up to 5.8% Massachusetts up to 9.0% Minnesota up to 9.8% Missouri up to 4.7% Montana up to 5.9% Nebraska up to 5.2% New Jersey up to 10.8% New Mexico up to 5.9% New York up to 10.9% North Dakota up to 2.5% Ohio up to 3.5% Oklahoma up to 4.8% Oregon up to 9.9% Rhode Island up to 6.0% South Carolina up to 6.2% Vermont up to 8.8% Virginia up to 5.8% West Virginia up to 4.8% Wisconsin up to 7.6% Washington DC up to 10.8%

Why the 1099 tax bill is higher

When you're a W-2 employee, your employer pays half of your payroll taxes — 7.65% of your salary — invisibly, on top of your wages. As a 1099 contractor, that cost shifts to you. You pay the full 15.3% self-employment tax yourself.

The silver lining: half your SE tax is deductible, which reduces your federal and state income tax bill. But it doesn't fully offset the difference.

What rate should you charge as a contractor?

To take home the same amount as a W-2 employee, a 1099 contractor typically needs to charge 25–30% more — before factoring in benefits like health insurance, paid time off, and 401(k) matching, which can add another 20–30%.

Pick your state and use the break-even calculator to see the exact number for your income level.

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