1099 Tax Calculator Illinois 2025–2026 & What Freelancers Actually Owe in Illinois & Chicago
Illinois is one of the simplest states in the country for 1099 contractors — a flat 4.95% state income tax, no city income tax, and no local surcharges. But Chicago freelancers who incorporate face the 1.5% Personal Property Replacement Tax. Use the calculator above to see your exact federal + state bill. Updated for 2026.
How 1099 taxes work in Illinois
Illinois 1099 contractors face three main tax obligations — plus PPRT if you incorporate:
Federal income tax
Calculated on net profit after deductions at standard federal brackets. Identical for all US taxpayers.
Self-Employment (SE) tax
15.3% on 92.35% of net earnings, covering both halves of Social Security (12.4% up to the $184,500 wage base) and Medicare (2.9% with no cap). As a 1099 contractor, you pay both halves.
Illinois state income tax
A flat 4.95% on taxable income. Illinois does not use brackets. The state also uses a personal exemption instead of a standard deduction. For 2026, the exemption is $2,775 per taxpayer (inflation-adjusted estimate based on IL DOR formula).
Chicago local income tax
None. Chicago does not impose a city income tax on individuals.
Illinois PPRT (Personal Property Replacement Tax)
Applies only to incorporated entities: S-corps at 1.5%, partnerships/LLCs taxed as partnerships at 1.5%, and C-corps at 2.5%. Sole proprietors do not pay PPRT.
A freelancer earning $100,000 in Illinois pays roughly $31,000–$33,000 in total taxes — compared to $38,000–$42,000 in New York City or $29,000 in Texas or Florida. Use the calculator above to see your exact Illinois 1099 tax bill, or read on to understand every layer of what you owe.
What an Illinois 1099 contractor actually owes in 2026
Here is what a freelancer earning different income levels owes in 2026, assuming standard federal deductions and the Illinois personal exemption.
Illinois (statewide):
Net 1099 Income
SE Tax
Federal Income Tax
IL State Tax
Total Tax
Effective Rate
$40,000
$5,652
$2,836
$1,860
$10,348
~26%
$60,000
$8,478
$5,836
$2,970
$17,284
~29%
$80,000
$11,304
$9,836
$3,960
$25,100
~31%
$100,000
$14,130
$14,836
$4,950
$33,916
~34%
$150,000
$16,377
$28,711
$7,425
$52,513
~35%
Estimates assume single filer, federal standard deduction, Illinois personal exemption, no additional business deductions. Use the calculator above for your exact figures.
Chicago vs Illinois: the real cost difference
Chicago freelancers do not pay a city income tax. The only difference comes from PPRT, which applies only if you operate as an S-corp or partnership/LLC.
Structure
IL State Tax
Chicago PPRT
Total State + Local
Extra vs Sole Proprietor
Sole Proprietor
4.95%
0%
4.95%
—
LLC taxed as partnership
4.95%
1.5%
6.45%
+1.5%
S-Corp
4.95%
1.5%
6.45%
+1.5%
Chicago has no city income tax. PPRT is statewide but disproportionately affects Chicago freelancers who incorporate. For a Chicago freelancer earning $100,000: a sole proprietor pays $4,950 in IL tax, while an S-corp or LLC taxed as partnership pays $6,450 combined IL + PPRT. This is still dramatically lower than NYC's combined 9%–10% state + city burden.
Illinois vs other states: the real cost difference
State
State + Local Tax at $100k
Total Tax
vs Illinois
vs Chicago S-Corp
Illinois
~$4,950
~$33,916
—
-$1,500
Chicago (S-Corp)
~$6,450
~$35,416
+$1,500
—
California
~$8,548
~$37,514
+$3,598
+$2,098
New York State
~$6,132
~$35,098
+$1,182
-$318
NYC
~$10,048
~$38,928
+$5,098
+$3,512
Texas
$0
~$28,966
-$4,950
-$6,450
Florida
$0
~$28,966
-$4,950
-$6,450
Illinois is significantly cheaper than NYC or California, but more expensive than Texas or Florida.
Illinois-specific deductions and quirks
Illinois follows most federal deduction rules but has several important differences.
No state standard deduction
Illinois uses a personal exemption instead of a standard deduction. For 2026, the exemption is $2,775 per taxpayer.
Illinois conforms to the federal QBI deduction
Unlike New York, Illinois allows the federal Qualified Business Income (QBI) deduction to reduce your Illinois taxable income. This is a major difference from NY.
SE tax deduction applies at the state level
Illinois allows the federal SE tax deduction (half of SE tax) to carry through to the state return.
Home office deduction
Illinois follows federal home office rules. Chicago freelancers with high rents often benefit from the actual expense method.
Health insurance premiums
Often 100% deductible at both the federal and Illinois state level for self-employed individuals who are not eligible for employer-sponsored coverage.
Quarterly estimated taxes in Illinois
Illinois 1099 contractors must pay federal and Illinois estimated taxes separately throughout the year.
Federal estimated tax deadlines for 2026:
April 15 — Q1 (January–March income)
June 16 — Q2 (April–May income)
September 15 — Q3 (June–August income)
January 15, 2027 — Q4 (September–December income)
Illinois estimated tax deadlines for 2026:
Illinois follows the same schedule — April 15, June 15, September 15, and January 15. File using Form IL-1040-ES. The threshold to pay estimated taxes in Illinois is $500 expected liability. Source: Illinois Department of Revenue, IL-1040-ES instructions.
A safe set-aside rate for Illinois contractors is 30–34% of net income. For Chicago freelancers operating as S-corps or LLCs taxed as partnerships, lean toward 32–36% due to PPRT.
Illinois LLC rules for freelancers
Illinois has several LLC requirements worth understanding.
Formation fee — $150
Illinois LLCs pay a $150 formation fee. Source: Illinois Secretary of State.
Annual report fee — $75
Filed every year with the Secretary of State.
No publication requirement
Unlike New York, Illinois does not require newspaper publication.
S-Corp election in Illinois
Illinois recognizes the federal S-Corp election. However, S-corps owe 1.5% PPRT, which reduces the net benefit of the S-corp structure compared to states like Florida or Texas.
Illinois uses a flat 4.95% income tax. Chicago freelancers do not pay a city income tax. S-corps and LLCs taxed as partnerships owe an additional 1.5% PPRT.
No. Chicago does not impose a city-level income tax on individuals. The only additional layer for Chicago freelancers comes from the statewide PPRT, which applies only to S-corps and LLCs taxed as partnerships.
The Personal Property Replacement Tax is a statewide tax of 1.5% for S-corps and partnerships/LLCs taxed as partnerships. Sole proprietors do not pay PPRT. C-corps pay 2.5%.
Yes. Illinois conforms to federal QBI rules — unlike New York — so the Qualified Business Income deduction reduces your Illinois taxable income as well as your federal taxable income.
30–34% of net income for sole proprietors. 32–36% for S-corps or LLCs taxed as partnerships due to the additional 1.5% PPRT.
Illinois is simpler and cheaper than NYC or California, but more expensive than Texas or Florida. Chicago freelancers who incorporate must factor in the 1.5% PPRT, which reduces the net benefit of the S-Corp structure.
The tables above use standard assumptions. Your actual bill depends on your filing status, deductions, business expenses, and whether you operate as a sole proprietor or LLC/S-corp.
The 1099 tax calculator gives you a precise federal and SE tax breakdown based on your specific income and deductions, updated for 2026 brackets.
If your net profit is over $60,000, also check the LLC tax savings calculatorto see whether the S-Corp election saves you money after accounting for Illinois's PPRT and LLC fees.
Federal estimates based on 2026 IRS tax brackets. Illinois state estimates based on the 2026 flat 4.95% rate and $2,775 personal exemption. PPRT estimates based on Illinois Personal Property Replacement Tax rules. For educational purposes only — consult an Illinois CPA for advice specific to your situation.
ESTIMATES BASED ON 2026 TAX LAW • FOR EDUCATIONAL PURPOSES ONLY