1099 Hourly Rate Calculator
Calculate the hourly rate you need as a 1099 independent contractor after taxes and business expenses.
1099 income has no employer withholding — you owe self-employment tax plus income tax on net profit. This page uses 32% combined tax and $7k expenses, typical for US contractors billing clients directly.
Market reference
| Metric | Range | Note |
|---|---|---|
| SE tax (US 1099) | 15.3% | on net earnings |
| Quarterly estimates | IRS 1040-ES | avoid penalties |
| Deductions | home office, software | reduce net |
| vs W-2 equivalent | +30–50% hr | rough uplift |
Interactive example — 1099 hourly rate calculator
Defaults match this page's scenario. Adjust numbers to see your rate update instantly.
- Minimum hourly
- $105
- Day rate (8h)
- $837
- Typical project
- $5,025
- Monthly retainer
- $10,878
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Frequently asked questions
What is a 1099 hourly rate?
The gross hourly charge needed so that after tax and expenses you hit your take-home target.
Do 1099 contractors pay more tax than employees?
You pay both employer and employee portions of Social Security/Medicare on net self-employment income.
Should clients pay 1099 contractors more than employees?
Yes — you cover benefits, downtime, and both sides of payroll tax.