Contractor vs Employee: Seattle 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 Seattle puts $11,021 more in your pocket per year.
| Metric | Employee | Contractor |
|---|---|---|
| Annual Revenue / Gross Salary | $100,000 | $130,000 |
| Unbilled Weeks Adjustment | — | $10,000 |
| Actual Gross Income | $100,000 | $120,000 |
| Business Overheads | — | $4,700 |
| Taxable Income | $100,000 | $115,300 |
| Social Security | $7,650 | $8,820 |
| Income Tax | $11,931 | $15,040 |
| Effective Tax Rate | 19.6% | 20.7% |
| Net Annual Income | $80,419 | $91,440 |
| Net Monthly Income | $6,702 | $7,620 |
To match your employee take-home of $80,419/year, you need to invoice at least $92,212/year as a contractor in Seattle.
That's roughly $1,773/week or $355/day.
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Frequently Asked Questions
Is it worth going contractor in Seattle?
Yes — at a revenue of $130,000/year, a contractor in Seattle takes home $91,440/year (effective rate: 20.7%), compared to $80,419/year as an employee (effective rate: 19.6%).
What contractor rate do I need to match my employee salary in Seattle?
To match an employee take-home of $80,419/year in Seattle, you need to invoice at least $92,212/year as a contractor — roughly $1,773/week or $355/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.