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Washington contractor decision tool

Washington 1099 vs W-2 Calculator

Estimate Washington W-2 and contractor take-home, then solve for the 1099 annual and hourly break-even target.

Washington has no broad individual income tax, but 1099 is not tax-free

Washington does not impose a broad individual income tax on wages, so the state-income-tax layer in a typical W-2 versus 1099 comparison differs from states that tax ordinary income. That does not mean a contractor has no tax burden. Federal income tax, federal self-employment tax and contractor-paid costs still affect the economic comparison.

A Washington contractor may also face business or payroll-related obligations outside the narrow individual-income-tax calculation. The calculator should therefore be read as a scoped planning model, not as a statement that every state or local business obligation is included.

Why the contractor premium can still be meaningful

The W-2 side can include employer payroll-tax sharing, paid time off, health coverage and other benefits. On the 1099 side, some of those costs shift directly to the worker. Business expenses and non-billable time also reduce the value of a headline contractor rate. Use realistic billable hours and actual expected costs before deciding whether the offer is above break-even.