Illinois Self-Employment Tax Calculator

Calculate your self-employment tax, federal income tax, and Illinois state income tax as a freelancer or 1099 contractor. Illinois has a flat income tax rate of 4.

Annual Tax Breakdown

1099 Income
$85,000
Business Expenses
-$10,000
Net Profit
$75,000
Net Earnings (92.35%)(SE tax base)
$69,263
Social Security (12.4%)
-$8,589
Medicare (2.9%+)
-$2,009
Total SE Tax
-$10,597
SE Deduction (50%)(reduces income tax)
$5,299
Federal Income Tax
-$6,794
State Income Tax
-$3,713
Total Tax Owed
$21,104

Summary

Total Income
$75,000
Total Taxes
-$21,104
After-Tax Income
$53,896
Effective Tax Rate(on total income)
28.1%

Quarterly Estimated Payments

Q1 (Jan-Mar)Due April 15
$5,276
Q2 (Apr-May)Due June 15
$5,276
Q3 (Jun-Aug)Due September 15
$5,276
Q4 (Sep-Dec)Due January 15 (next year)
$5,276
Each Quarterly Payment
$5,276

Tax Breakdown

See your complete freelancer financial picture

Your estimated quarterly tax payment is $5,276. Model your freelance income alongside expenses, savings, and investments in the full simulator.

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Illinois Tax Overview for Freelancers

Illinois has a flat income tax rate of 4.95%. While the rate is moderate, property taxes in Illinois are among the highest in the nation. Self-employed individuals in Illinois pay federal self-employment tax (15.3%) plus federal income tax, and Illinois state income tax on their net self-employment earnings.

Flat 4.95% rateVery high property taxesNo tax on retirement incomeMajor financial hub in Chicago

Self-Employment Taxes in Illinois

If you work as a freelancer or independent contractor in Illinois, your tax situation involves multiple layers: federal self-employment tax, federal income tax, and Illinois state income tax. Understanding how each component works helps you plan your quarterly estimated payments and maximize your deductions.

Illinois Income Tax for Freelancers

Illinois has a flat income tax rate of 4.95%. While the rate is moderate, property taxes in Illinois are among the highest in the nation.

Cost of Living for Freelancers in Illinois

Illinois' cost of living is near the national average overall, but property taxes are 2-3x the national average. As a freelancer in Illinois, your effective earnings depend not just on your tax rate but also on what your after-tax income can buy. Consider local costs for housing, coworking spaces, and daily expenses when setting your rates.

Financial Tips for Illinois Freelancers

  • Illinois' 4.95% flat rate is straightforward but watch out for very high property taxes
  • Chicago offers competitive salaries in finance, tech, and healthcare
  • Illinois does not tax retirement income including Social Security, pensions, and 401(k) distributions
  • Consider that Illinois' high property taxes offset some of the benefit of the moderate income tax

Key Illinois Tax Features

  • Flat 4.95% rate
  • Very high property taxes
  • No tax on retirement income
  • Major financial hub in Chicago

Model Your Illinois Freelance Finances Over Time

This calculator shows your Illinois tax bill. Trajectoryy's full simulator models your freelance income alongside expenses, savings, investments, and more — month by month for years into the future.

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Compare Illinois with Other States

Wisconsin7.65% top rateIndiana3.05% top rateIowa5.7% top rateCalifornia13.3% top rateTexasNo income taxFloridaNo income tax

Frequently Asked Questions

How is self-employment tax calculated in Illinois?
Self-employed workers in Illinois pay federal self-employment tax (15.3% on 92.35% of net earnings), federal income tax, and Illinois state income tax. Illinois has a flat income tax rate of 4.95%. While the rate is moderate, property taxes in Illinois are among the highest in the nation.
How much will I owe in quarterly taxes as a freelancer in Illinois?
Your quarterly estimated tax payment in Illinois depends on your total tax liability — including SE tax, federal income tax, and Illinois state income tax. Use the calculator above to estimate your quarterly payments. As a general rule, freelancers should set aside 25-35% of their net income for taxes.
What business deductions are available for Illinois freelancers?
Freelancers in Illinois can deduct the same federal business expenses as in any state: home office, equipment, software, health insurance, vehicle expenses, and more. These deductions also reduce your Illinois state taxable income, providing additional state tax savings.
Does Illinois have any special taxes for self-employed workers?
Illinois does not have a separate self-employment tax. However, your net self-employment income is subject to Illinois's regular income tax (4.95% top rate) in addition to federal self-employment tax and federal income tax.
Should I form an LLC or S-Corp as a freelancer in Illinois?
The decision to form an LLC or S-Corp in Illinois depends on your income level. Generally, if your net self-employment income exceeds $50,000-$60,000, an S-Corp election may save you money by allowing you to pay yourself a reasonable salary (subject to FICA/Medicare) while taking the rest as distributions (not subject to SE tax). Consult a Illinois tax professional for advice specific to your situation.

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