Tax
W-2 vs 1099 Taxes
Compare W-2 employee taxes and 1099 contractor taxes in simple terms.
Quick answer
Use this guide as a simple starting point, then compare your numbers with the related TaxMaster calculators below. Calculator results are educational estimates and may differ from your actual tax, payroll, or financial result.
W-2 workers are usually employees. Employers often withhold federal income tax, Social Security, Medicare, and sometimes state income tax from each paycheck.
1099 workers are usually independent contractors. They may need to handle their own tax payments, including income tax and self-employment tax. This can make planning more important.
A 1099 contractor may appear to earn more per hour, but the contractor may also be responsible for taxes, insurance, benefits, retirement savings, equipment, unpaid time, and business expenses.
W-2 employees may have access to employer benefits such as health insurance, retirement plans, paid time off, and unemployment insurance. These benefits can have real value beyond the paycheck amount.
Use the self-employment tax calculator, paycheck calculator, and federal income tax calculator to compare simple scenarios.
Related calculators
Use these calculators to compare the numbers from this guide.
Self-Employment Tax Calculator
Estimate self-employment tax for freelancers and contractors.
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Paycheck Calculator
Estimate take-home pay from salary or wages.
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Federal Income Tax Calculator
Estimate federal income tax using a simple educational model.
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Budget Calculator
Plan monthly income, expenses, and savings.
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Frequently asked questions
Is this article tax advice?
No. TaxMaster articles are for general educational purposes only and are not tax, legal, accounting, payroll, investment, or financial advice.
Why can my actual result be different?
Your actual result may be different because taxes, deductions, credits, filing status, state rules, local taxes, payroll benefits, and personal circumstances can change the final number.
Which calculators should I use with this guide?
Use the related TaxMaster calculators linked on this page, such as the paycheck calculator, federal income tax calculator, state income tax calculator, or other relevant tools.
Important note
This article is for educational purposes only. It is not tax, legal, accounting, payroll, investment, or financial advice. Your actual result may be different depending on your personal situation.
Last updated: June 2026