CALCULATOR
1099 Net Profit Estimator
Self-employment income hits different than W-2. Self-employment tax, retirement contributions, and the QBI deduction all change the math. Plug in your numbers and see what actually lands in your bank account, plus a same-gross W-2 comparison so the 1099 vs W-2 question gets a real answer.
Uses 2026 federal brackets, 2026 SE tax rates, simplified state rates. QBI assumes full eligibility under the income threshold. Educational only, not tax advice.
Your 1099 Income
Deductible Schedule C expenses
Max calculated below
Annual premium (deductible)
Why 1099 Income Hits Different
On a W-2, your employer pays half of FICA (7.65%). On a 1099, you pay both halves yourself, that's the 15.3% self-employment tax. The first $168,600 of net SE earnings (2026) gets the full 12.4% Social Security portion; everything gets the 2.9% Medicare portion. There's an additional 0.9% Medicare surcharge above $200k single / $250k MFJ.
Three things make 1099 better than the surface math suggests. The QBI deduction lets pass-through business owners deduct 20% of qualified business income (full benefit under $241,950 single / $483,900 MFJ in 2026). Self-employed retirement accounts (Solo 401(k), SEP-IRA) allow far higher contributions than a typical W-2 401(k), up to $69,000 combined for 2026. And business expenses are deductible at the top of the math, before SE tax even applies.
The W-2 vs 1099 question often comes down to: does the 1099 pay enough to cover the extra 7.65% in SE tax, the cost of buying your own health insurance, and the missing employer 401(k) match. Generally a 1099 needs to pay 25-30% more gross than a W-2 to come out roughly equal. Pair this with the account maximizer to see the full retirement contribution waterfall, or the budget calculator to plan around a quarterly-tax payment schedule.