Illinois Self-Employment Tax Calculator 2026
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Illinois has a simple flat 4.95% income tax on all income, including self-employment income. Combined with federal SE tax, the total effective rate is manageable.
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Gross income minus business expenses
Tax Information Notice
This content is for informational and educational purposes only. It does not constitute tax, legal, or financial advice. Tax laws change frequently. Always consult a qualified CPA or Enrolled Agent for your specific situation.
Illinois self-employment tax questions
What is the self-employment tax rate in Illinois?
The self-employment tax rate is 15.3% on net self-employment earnings up to $184,500 for 2026, then 2.9% above that. It is a federal tax, so the rate in Illinois is the same as every other state. Illinois separately taxes that income at 4.95% flat.
Do freelancers in Illinois pay self-employment tax?
Yes. Every freelancer and independent contractor in the US, Illinois included, owes self-employment tax once net self-employment earnings reach $400 for the year. You can deduct half of the SE tax from gross income on your federal return.
Does Illinois have its own self-employment tax?
No. Illinois does not levy a separate self-employment tax. It taxes self-employment income as ordinary income at 4.95% flat, which is a different tax from the federal 15.3% SE tax. Illinois has a simple flat 4.95% income tax on all income, including self-employment income. Combined with federal SE tax, the total effective rate is manageable.
How much of self-employment tax is deductible in Illinois?
Half of your self-employment tax is deductible from gross income on your federal return, which lowers federal income tax but not the SE tax itself. The deduction is federal; Illinois treatment follows its own rules for calculating state taxable income.
Tax Information Notice
This content is for informational and educational purposes only. It does not constitute tax, legal, or financial advice. Tax laws change frequently. Always consult a qualified CPA or Enrolled Agent for your specific situation.