Illinois (IL) Freelance Effective Tax Rate Calculator
Tax year: 2026 · Figures for Tax Year 2026 · Source: IRS
Built and audited by the CalcSumly Engineering Team using official IRS and State Department of Revenue data.
Your Schedule C net profit (revenue minus business expenses).
Retirement contributions (Solo 401(k)/SEP-IRA), self-employed health insurance, and other above-the-line deductions. Leave at $0 to see the baseline effective rate.
Effective tax rate · 2026
28.0%
federal + SE + Illinois state · all-in blended rate
A freelancer earning $80,000 in Illinois pays a combined effective tax rate of 28.0% (22% federal marginal rate).
How your freelance effective tax rate is calculated in Illinois for 2026
As a self-employed person in Illinois, your total tax burden has three components: self-employment tax (SE tax), federal income tax, and Illinois state income tax. Your all-in effective rate is the total of these three divided by your net profit.
Illinois taxes federal AGI minus the Illinois standard deduction. The deductible half of SE tax and above-the-line deductions that reduce federal AGI flow through to reduce Illinois taxable income.
SE tax and federal income tax
SE tax is 15.3% on 92.35% of net profit up to $184,500 (the 2026 Social Security wage base) and 2.9% above that. One-half of SE tax is deductible above the line, reducing federal AGI. Federal income tax is calculated on federal AGI minus the standard deduction, using the 2026 ordinary income brackets.
Effective rate vs marginal rate
The effective rate is total tax divided by net profit. The marginal rate is the bracket that applies to the last taxable dollar. The combined marginal rate adds the SE tax rate on the next dollar of profit (approximately 14.1% under the Social Security wage base) to the federal income tax marginal rate.
Scope and limitations
This calculator models standard deduction filers only. It does not include QBI deduction, Additional Medicare Tax (0.9% over $200,000/$250,000), Alternative Minimum Tax, or Illinois-specific surtaxes or local taxes. Consult a tax professional for a complete picture of your individual tax situation.
Sources
- IRS Schedule SE — Self-Employment Tax (Form 1040)
- IRS Notice 2025-67 — 2026 Social Security Wage Base and FICA Rates
- IRS Rev. Proc. 2025-32 — 2026 Standard Deduction and Tax Bracket Amounts
- IL Dept. of Revenue — Income Tax Rates (4.95% flat rate)
- IL Dept. of Revenue — What is the Illinois exemption allowance? ($2,925 per exemption, 2026)
Frequently asked questions
What is the combined effective tax rate for freelancers?+
Your effective tax rate is the total tax you owe (SE tax + federal income tax + state income tax) divided by your total net self-employment income. This is a blended average across all dollars earned, not the rate on the next dollar. The combined marginal rate on the next dollar is higher than the effective rate because earlier dollars are taxed at lower bracket rates.
What is the difference between effective rate and marginal rate?+
Your marginal rate is the tax you pay on the next dollar earned. Your effective rate is the average rate across all dollars. Always plan quarterly estimated tax using the marginal rate on incremental income, but use the effective rate to understand your overall tax burden and what to set aside.
How much should I set aside for taxes as a freelancer?+
Set aside your all-in effective rate as a percentage of each payment you receive. Add a 5% buffer for unexpected income increases. Quarterly estimated tax payments are due April 15, June 16, September 15, and January 15. The IRS safe-harbor rule: pay 100% of the prior year's tax liability (110% if AGI was above $150,000) to avoid underpayment penalties.
What is the effective tax rate for freelancers in Illinois?+
Illinois taxes net income at a flat 4.95% rate for 2026. The Illinois tax base is federal AGI minus the Illinois standard deduction of $2,775 single / $5,550 MFJ. At $80,000 net profit (single), the Illinois component adds roughly 4.95% of Illinois taxable income to the all-in effective rate. Combined with federal and SE tax, the all-in effective rate for an Illinois freelancer at $80,000 is typically between 24% and 28%.
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