Freelance Hourly Rate to Salary Calculator (1099 vs W-2)

1099 hourly rate to take-home pay with 15.3% SE tax

This tool applies US self-employment rules (Form 1099): revenue minus expenses, then 15.3% self-employment tax on 92.35% of net profit, then income tax at the rate you enter. At $75 an hour, 30 hours a week and 48 weeks, about $63,200 a year remains, or $44 net per billed hour.

Formula used

1. Annual revenue = hourly rate × billable hours per week (60 at most) × (52 − unpaid weeks).
2. Net profit = revenue − tools and overhead × 12 (health insurance is not a business expense).
3. Self-employment tax = 12.4% × the lower of (profit × 92.35%) and $184,500, plus 2.9% × profit × 92.35%.
4. Income tax = (profit − health insurance × 12 − half of the SE tax) × the rate you enter.
5. Take-home = profit − health insurance − SE tax − income tax. The W-2 equivalent shown is revenue × 0.72.

Worked example

$75 an hour, 30 billable hours, 4 weeks off: 48 weeks and $108,000 of revenue. After $3,600 of tools, profit is $104,400. SE tax comes to $14,751.25 and income tax at 22% on $90,424.38 (profit minus $6,600 of health insurance and half the SE tax) to $19,893.36. Once health insurance is paid, that leaves $63,155.39 a year ($5,262.95 a month), or $43.86 net per billed hour. The W-2 equivalent shown is $77,760.

Assumptions and limits

• The 12.4% Social Security portion stops at the $184,500 wage base (2026); above it, only the 2.9% Medicare portion continues.
• The 0.9% Additional Medicare Tax is ignored.
• Health insurance is not part of the SE tax base: the self-employed health insurance deduction only lowers income tax.
• One flat income tax rate, with no standard deduction and no QBI deduction.

This is an estimate and does not replace advice from a tax professional.

Sources and dates: 12.4% Social Security and 2.9% Medicare on 92.35% of net earnings, half of the tax deductible, Additional Medicare Tax above $200,000 for single filers (IRS Tax Topic 554, reviewed 24/09/2026); Social Security wage base of $184,500 for 2026 earnings, up from $176,100 in 2025 (SSA 2026 COLA fact sheet, effective 1 January 2026) (checked on 14/10/2026).

Frequently Asked Questions

How much self-employment tax on $100,000 of profit?

The tax applies to 92.35% of profit, $92,350, at 15.3%: $14,129.55. Half of it, $7,064.78, is deducted when computing income subject to federal tax. That is exactly what the tool computes below the Social Security wage base.

Does the tool apply the 2026 Social Security wage base?

Yes. In 2026 the 12.4% portion only applies to the first $184,500 of net earnings (92.35% of profit); above that, the tool only adds the 2.9% Medicare portion. At $300,000 of profit, SE tax is $30,912.45, about $11,476 less than 15.3% on all profit.

Why is the W-2 equivalent 72% of revenue?

It is a fixed ratio in the tool: an employer pays half of FICA, part of health insurance, paid time off and often a 401(k) match, so a salary can be lower than a contractor's billings. With $108,000 billed, the tool shows $77,760. The ratio is a rule of thumb, not an official figure.

How much do I keep per billed hour at $75 an hour?

With 30 billable hours a week, 48 weeks, $850 of monthly costs and a 22% tax rate, you keep $43.86 net per billed hour, 58% of the rate. Non-billable hours (sales, bookkeeping) are unpaid and lower the return per hour actually worked even further.

Is this tool really free?

Yes, all tools on Kristools are 100% free and accessible without registration.

Is my data protected?

Yes. All processing is performed directly and securely inside your browser. No personal data is sent to our servers.