2026 tax year · Illinois
Services and task work taxes in Illinois
TaskRabbit, Rover, Upwork and the rest report your gross and withhold nothing. The gap between that and what you are taxed on is mileage, in Illinois that gap is worth $2,363 in tax.
Take a driver who grossed $34,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the services and task work page $9,030 comes off and $24,970 is left as taxable profit. That profit is what Illinois and the IRS charge against.
What that leaves you owing in Illinois
Illinois taxes income at a flat 4.95% for 2026, applied on top of federal income tax and self-employment tax.
| Self-employment tax | $3,528 |
| Federal income tax | $568 |
| Illinois income tax | $1,149 |
| Total tax | $5,245 |
| Effective rate on gross | 15.4% |
Earning more in Illinois
A single filer taking the standard deduction, standard mileage method, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:
| Volume | Gross | Mileage off | Taxable profit | Illinois tax | Total tax | Rate on gross |
|---|---|---|---|---|---|---|
| Part-time | $11,000 | $1,485 | $9,515 | $438 | $1,782 | 16.2% |
| Steady side income | $34,000 | $4,455 | $29,545 | $1,359 | $6,442 | 18.9% |
| Full-time | $55,000 | $7,425 | $47,575 | $2,189 | $11,362 | 20.7% |
Working across an Illinois line
Services income is sourced to where the work was physically done. A job over the line can create a filing obligation in that state even for a single afternoon, and reciprocity agreements do not help, they cover wages paid by an employer, not self-employment income.
On $24,970 of profit, what the states around Illinois would charge:
| State | Its tax | vs Illinois |
|---|---|---|
| Indiana | $737 | −$499 |
| Kentucky | $874 | −$362 |
| Iowa | $949 | −$287 |
| Wisconsin | $970 | −$266 |
| Missouri | $1,028 | −$208 |
- Indiana would take $499 less, $737 against Illinois's $1,236.
- Kentucky would take $362 less, $874 against Illinois's $1,236.
- Iowa would take $287 less, $949 against Illinois's $1,236.
- Wisconsin would take $266 less, $970 against Illinois's $1,236.
- Missouri would take $208 less, $1,028 against Illinois's $1,236.
Services and task work tax questions in Illinois
How much should an Illinois contractor set aside?
About 15.4% of gross on the $34,000 example, $5,245 across self-employment tax, federal income tax and $1,149 to Illinois. In practice that means moving about $154 of every $1,000 payout into a separate account the day it lands, and sending roughly $1,311 to the IRS each quarter, no platform withholds any of this for you. Set aside from each payout rather than finding it in April.
Does the $34,000 on my 1099-NEC match what Illinois taxes?
No. Illinois taxes profit, not gross. After $9,030 of deductions the taxable figure is $24,970, so the Illinois bill is $1,149 rather than what gross alone would suggest. The form reports what the platform paid out, it knows nothing about your costs, and no one subtracts them for you. On this example 27% of the gross never becomes taxable income, but only for the contractor who kept the records to prove it.