2026 tax year · Illinois
Marketplace seller taxes in Illinois
Etsy, eBay, Shopify and the rest report your gross and withhold nothing. The gap between that and what you are actually taxed on is your costs, in Illinois that gap is worth $7,169 in tax.
Take a driver who grossed $45,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the marketplace seller page $26,775 comes off and $18,225 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 | $2,575 |
| Federal income tax | $67 |
| Illinois income tax | $838 |
| Total tax | $3,481 |
| Effective rate on gross | 7.7% |
Earning more in Illinois
A single filer taking the standard deduction, 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 | $15,000 | $0 | $15,000 | $690 | $2,809 | 18.7% |
| Steady side income | $45,000 | $0 | $45,000 | $2,070 | $10,650 | 23.7% |
| Full-time | $72,000 | $0 | $72,000 | $3,312 | $18,116 | 25.2% |
Switching state opens that state's page.
Enter your numbers and press Calculate to see your 2026 estimate.
Selling into and out of Illinois
Income tax follows you: Illinois taxes your profit wherever the buyer was. Sales tax does not. Marketplace facilitator laws make the platform collect and remit sales tax on your behalf in most states, which is why a seller can have customers in all fifty and still file only one income tax return. Selling off-platform is where that stops being true.
On $18,225 of profit, what the states around Illinois would charge:
| State | Its tax | vs Illinois |
|---|---|---|
| Indiana | $538 | −$365 |
| Kentucky | $638 | −$264 |
| Wisconsin | $673 | −$229 |
| Iowa | $693 | −$210 |
| Missouri | $705 | −$197 |
- Indiana would take $365 less, $538 against Illinois's $902.
- Kentucky would take $264 less, $638 against Illinois's $902.
- Wisconsin would take $229 less, $673 against Illinois's $902.
- Iowa would take $210 less, $693 against Illinois's $902.
- Missouri would take $197 less, $705 against Illinois's $902.
Marketplace seller tax questions in Illinois
How much should an Illinois seller set aside?
About 7.7% of gross on the $45,000 example, $3,481 across self-employment tax, federal income tax and $838 to Illinois. Set aside from each payout rather than finding it in April.
Does the $45,000 on my 1099-NEC match what Illinois taxes?
No. Illinois taxes profit, not gross. After $26,775 of deductions the taxable figure is $18,225, so the Illinois bill is $838 rather than what gross alone would suggest.