{"place":"Illinois","kind":"state","asOf":"2026-10-07","url":"https://gigaverse.ai/local/illinois","state":{"code":"IL","name":"Illinois","slug":"illinois","incomeTax":{"type":"flat","flatRate2026":4.95,"lowestRate2026":null,"topRate2026":null,"topRateStartsSingle":null,"notes":"The 2026 IL-1040-ES worksheet computes tax as net income times 4.95%.","source":"https://tax.illinois.gov/content/dam/soi/en/web/tax/forms/incometax/documents/currentyear/individual/il-1040-es.pdf"},"estimatedTax":{"form":"IL-1040-ES","rule":"You must make estimated payments if you reasonably expect your 2026 Illinois tax liability to exceed $1,000 after Illinois withholding, pass-through withholding, and allowed credits.","schedule":"Same dates as federal (April 15, June 15, and September 15, 2026, and January 15, 2027).","source":"https://tax.illinois.gov/content/dam/soi/en/web/tax/forms/incometax/documents/currentyear/individual/il-1040-es.pdf"},"minimumWage2026":{"standard":15,"tippedCash":9,"tipCreditAllowed":true,"notes":"Employers can pay tipped workers 60% of the minimum wage. The youth rate (under 18, under 650 hours a year) is $13. Chicago's rate is higher: $17.05 from July 1, 2026, with a $12.96 tipped wage, for employers with 4 or more employees (https://www.chicago.gov/city/en/depts/bacp/supp_info/minimumwageinformation.html). Some other local rates may also be higher.","source":"https://labor.illinois.gov/laws-rules/fls/minimum-wage-law.html"},"soleProprietorTaxes":[],"contractorLaws":[{"name":"Freelance Worker Protection Act (820 ILCS 193)","summary":"Covers independent contractors who provide products or services in Illinois, or work for an Illinois hiring entity, when the work is worth $500 or more over 120 days. Applies to contracts that took effect after July 1, 2024. Covered freelancers get a written contract, full payment by the contract due date (or within 30 days of finishing if no date is set), and protection from retaliation.","source":"https://labor.illinois.gov/laws-rules/legal/freelance-worker-protection-act.html"},{"name":"Employee Classification Act (construction, 820 ILCS 185)","summary":"People doing construction work for a contractor are presumed to be employees unless all three parts of a test are met: free from control, outside the contractor's usual course of business, and an independently established business. Civil penalties run up to $1,500 per person per day, doubled for willful violations, and up to $2,500 per violation for repeat violations.","source":"https://labor.illinois.gov/faqs/ecafaq.html"},{"name":"Unemployment Insurance Act ABC test","summary":"For unemployment insurance, a worker is an employee unless all three are true: free from control or direction, work outside the usual course or places of the business, and engaged in an independently established trade or business.","source":"https://ides.illinois.gov/employer-resources/taxes-reporting/employee-misclassification.html"}],"notes":"Not listed above: the Personal Property Replacement Income Tax applies to partnerships, S corporations, and corporations, not to individuals filing as sole proprietors."},"stateRetirementProgram":{"state":"Illinois","code":"IL","programName":"My Illinois Savings (formerly Illinois Secure Choice)","status":"active","employerMandate":"Private employers in business 2+ years with 5+ employees in every quarter of the prior calendar year and no qualified plan","mandateMin":5,"keyDates":"All size waves closed: November 1, 2018 (500+), July 1, 2019 (100–499), November 1, 2019 (25–99), November 1, 2022 (16–24) and November 1, 2023 (5–15). Newly eligible employers receive an access code and an individual deadline.","covers1099":false,"selfEnroll":"yes","sourceUrl":"https://myilsavings.com/employers","note":"The Illinois Treasurer states the program is open for self-enrolment by individuals with earned income, including the self-employed. Congressional Research Service R48484 lists Illinois among the programs permitting it.","lastVerified":"2026-09-09"},"city":null,"guides":[{"audience":"consultants","url":"https://gigaverse.ai/local/illinois/consultants"},{"audience":"freelancers","url":"https://gigaverse.ai/local/illinois/freelancers"},{"audience":"content-creators","url":"https://gigaverse.ai/local/illinois/content-creators"},{"audience":"entrepreneurs","url":"https://gigaverse.ai/local/illinois/entrepreneurs"},{"audience":"gig-workers","url":"https://gigaverse.ai/local/illinois/gig-workers"},{"audience":"tipped-workers","url":"https://gigaverse.ai/local/illinois/tipped-workers"},{"audience":"tradespeople","url":"https://gigaverse.ai/local/illinois/tradespeople"}],"disclaimer":"Educational information for 2026, not tax, legal or investment advice. Sources are cited per fact."}