Ohio needs a special state path

Ohio cannot be treated safely as a single generic flat percentage in this project. The audited engine separates business and nonbusiness income where the model requires it and applies the dedicated 2026 Ohio path before producing the state tax estimate. That distinction matters especially for a W-2 versus sole-proprietor 1099 comparison because the two sides can have different state tax bases.

The state calculation does not attempt to represent every municipal or school-district tax. Those local obligations can vary by location, so the statewide calculator remains a planning estimate with an explicit scope rather than pretending one Ohio number covers every locality.

Break-even is more useful than a rule-of-thumb premium

Enter the W-2 salary, contractor offer, expenses, health insurance and realistic billable hours. The solver calculates the contractor gross needed to match the W-2 estimated take-home under the current model. If the offer falls short, the counter-offer target shows the minimum annual and hourly amount needed to reach break-even. You can then decide whether to add a further margin for benefits, downtime or contract risk.