Illinois Self-Employed Taxes: The Complete 2026 Guide
Illinois taxes all personal income — including self-employment profit — at a flat 4.95% rate. Add federal income tax and 15.3% SE tax and most Illinois freelancers land at a 26–34% effective rate. Estimate yours with our [Illinois self-employed tax calculator](https://gigmytax.com/calculators/illinois-self-employed-tax).
The three taxes on Illinois self-employment income
(1) Federal income tax at 10–37% marginal. (2) Self-employment tax at 15.3% on 92.35% of net profit. (3) Illinois state income tax at a flat 4.95% on net taxable income.
Illinois flat rate — the simple math
Take your federal AGI, subtract the Illinois personal exemption (~$2,775 per person for 2026 estimates), and multiply by 4.95%. There are no brackets to memorize.
Personal Property Replacement Tax (PPRT)
Partnerships, S-corps, and trusts owe an additional 1.5% PPRT on Illinois net income. Sole proprietors and single-member LLCs treated as disregarded entities do NOT owe PPRT.
Illinois quarterly estimated tax
IL uses the federal 4/15, 6/15, 9/15, 1/15 schedule. File Form IL-1040-ES. Required if you will owe $1,000+ in IL tax for the year. Underpayment penalty is charged at IRS-plus-1% rate.
Chicago-specific taxes
Chicago does NOT have a city income tax on residents. However, some services owe the Chicago Personal Property Lease Transaction Tax (9%) if you rent equipment, and the Netflix-style Amusement Tax applies to streaming/entertainment services you sell.
Deductions that reduce state AND federal
Business mileage at $0.70/mi, home office, phone %, self-employed health insurance, and Solo 401(k) all lower both federal AGI and Illinois taxable income. See our [1099 deductions checklist](https://gigmytax.com/blog/1099-deductions-checklist).
Worked example: $70k Illinois freelancer
$70k gross − $6k expenses = $64k net. SE tax ≈ $9,046. Federal (single, standard, ½ SE) ≈ $7,700. IL state (4.95% on ~$59k taxable) ≈ $2,920. Total ≈ $19,666 (~28% of gross). Verify: [Illinois calculator](https://gigmytax.com/calculators/illinois-self-employed-tax).
Set-aside for Illinois freelancers
Rule of thumb: 28–30% of every 1099 payout. Use our [set-aside calculator](https://gigmytax.com/calculators/tax-savings-percentage) for your exact number.
Bottom line
Illinois is mid-pack for self-employment tax — friendlier than NY or CA, more expensive than TX or FL. The flat 4.95% rate makes planning easy.
Frequently asked questions
+What is the Illinois self-employment tax rate?
Illinois charges a flat 4.95% state income tax on self-employment profit. On top of that, federal income tax and 15.3% federal SE tax still apply.
+Do Illinois freelancers pay Personal Property Replacement Tax?
Only partnerships, S-corps, and trusts owe PPRT (1.5%). Sole proprietors and disregarded single-member LLCs do not.
+Does Chicago have a city income tax?
No. Chicago has no personal income tax on residents. Certain business transaction taxes (leases, amusements) may still apply depending on your services.
+Do I have to pay IL quarterly estimated tax?
Yes if you will owe $1,000+ in Illinois tax for the year. File Form IL-1040-ES on the federal quarterly schedule.
+How much tax do self-employed Illinoisans pay?
Typically 26–34% of net profit — 15.3% SE + federal 10–24% marginal + IL flat 4.95%.
About the author
Javed Niamat · Founder & Editor, GigTax
Javed Niamat founded GigTax to make self-employment tax math understandable for rideshare drivers, delivery couriers, creators and freelancers. He builds and maintains every calculator on this site and writes the guides that explain the numbers behind them.
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