Contractor vs Employee: San Francisco 2026 — Net Income Calculator
See whether going independent actually pays more after tax, social security, and business overheads.
As an Employee
As a Contractor / Freelancer
Enter your rate as if you worked 52 weeks — we'll adjust for time off below.
e.g. 4 weeks off = 4
Going contractor in San Francisco puts $9,269 more in your pocket per year.
| Metric | Employee | Contractor |
|---|---|---|
| Annual Revenue / Gross Salary | $120,000 | $150,000 |
| Unbilled Weeks Adjustment | — | $11,538 |
| Actual Gross Income | $120,000 | $138,462 |
| Business Overheads | — | $4,700 |
| Taxable Income | $120,000 | $133,762 |
| Social Security | $16,380 | $18,258 |
| Income Tax | $13,155 | $15,769 |
| Effective Tax Rate | 24.6% | 25.4% |
| Net Annual Income | $90,465 | $99,734 |
| Net Monthly Income | $7,539 | $8,311 |
To match your employee take-home of $90,465/year, you need to invoice at least $103,095/year as a contractor in San Francisco.
That's roughly $1,983/week or $397/day.
Explore more for San Francisco
Frequently Asked Questions
Is it worth going contractor in San Francisco?
Yes — at a revenue of $150,000/year, a contractor in San Francisco takes home $99,734/year (effective rate: 25.4%), compared to $90,465/year as an employee (effective rate: 24.6%).
What contractor rate do I need to match my employee salary in San Francisco?
To match an employee take-home of $90,465/year in San Francisco, you need to invoice at least $103,095/year as a contractor — roughly $1,983/week or $397/day.
How this calculator works
This calculator compares the net income of a contractor (B2B / freelance) against an employee earning the same gross amount. It applies each country's corporate and personal tax rules, social security, and estimates the break-even invoicing rate a contractor needs to match an employee's take-home pay.
What's included
- Employee income tax and social security
- Contractor / B2B corporate tax and distributions
- Break-even contractor day rate
- Effective tax rate comparison
What's not included
- IR35 / deemed employment rules (UK-specific)
- VAT registration and reclaim
- Business expenses or deductions
- Employer pension contributions
Data sources: Official tax authority publications for each jurisdiction: HMRC (UK), IRS (US), Autoridade Tributária (PT), KVK/Belastingdienst (NL), IRAS (SG). Updated for 2025/26.