How Etsy Taxes Work in Illinois
Illinois has a flat 4.95% state income tax rate. Etsy workers in Illinois must file IL-1040-ES for quarterly state estimated payments. Note: Illinois does not conform to some federal deductions.
SE Tax
15.3%
Federal (all states)
Federal Tax
10–37%
Based on income
IL State Tax
4.95%
Illinois rate
2026 Quarterly Tax Deadlines for Illinois
| Quarter | Due Date | Federal (1040-ES) | IL State |
|---|
| NOWQ1 2026 | April 15, 2026 | ✓ Required | Required |
| Q2 2026 | June 16, 2026 | ✓ Required | Required |
| Q3 2026 | September 15, 2026 | ✓ Required | Required |
| Q4 2026 | January 15, 2027 | ✓ Required | Required |
Top Tax Deductions for Etsy Workers in Illinois
FAQ — Etsy Taxes in Illinois 2026
Q: How much is Etsy tax in Illinois?
In Illinois, Etsy workers pay 15.3% self-employment tax, federal income tax (10–37%), plus 4.95% Illinois state income tax. On $50,000 net income, expect to owe approximately $17,000–$22,000 total.
Q: Do I need to make quarterly payments in Illinois?
Yes. In Illinois, you must make both federal quarterly estimated payments (IRS Form 1040-ES) and Illinois state quarterly payments if you expect to owe $1,000 or more.
Q: What is the self-employment tax rate in Illinois for Etsy workers?
The federal self-employment tax rate is 15.3% regardless of state. This covers Social Security (12.4%) and Medicare (2.9%). In Illinois, you additionally pay 4.95% state income tax.
Q: Does Etsy take out taxes in Illinois?
No. Etsy classifies workers as independent contractors, not employees. No taxes are withheld from your payments. You are responsible for paying all federal SE tax, federal income tax, and Illinois state income tax yourself, typically through quarterly estimated payments.
Disclaimer: State tax rates are for estimation purposes. Verify with your state's department of revenue or a licensed CPA. Not affiliated with the IRS, Etsy, or any government agency.