Illinois 1099 vs W2 Calculator

Compare employer cost and worker take-home in Illinois, with local income-tax estimates pre-filled.

Pre-filled with Illinois estimates: SUI 3.5%, state income tax ~5.0%. Edit any field below.

Payroll taxes + benefits on W2

Worker's effective rate

Worker's effective rate

Employer cost (per year)

$98,176

W2 fully burdened

$104,000

1099 cost

W2 is cheaper for the employer by $5,824/yr.

Worker take-home (per year)

$62,733

W2 take-home

$72,923

1099 take-home

1099 nets the worker $10,190/yr more. A 1099 rate of about $43.01/hr matches this W2 offer's take-home.

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Estimates only, using editable 2025 US defaults. Tax and insurance rates vary by employer, classification, and locality — verify with a licensed accountant before relying on these figures.

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Comparing a 1099 contract against a W2 role in Illinois means weighing employer cost against worker take-home. Flat 4.95% income tax with a mid-range SUI wage base. Because Illinois taxes wage income (around 5.0% effective), that rate is pre-filled for the take-home side.

Enter the W2 and 1099 rates to see the annual cost to the employer for each, the worker's take-home for each, and the break-even 1099 rate that matches the W2 offer in Illinois.

1099 vs W2 in Other States

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Illinois 1099 vs W2 FAQ

Is 1099 or W2 better in Illinois?
In Illinois, both federal and state income tax (roughly 5.0% effective) apply to either option, but a 1099 contractor also pays the full 15.3% self-employment tax with no employer benefits. The calculator above shows employer cost and worker take-home for Illinois so you can compare directly.
What 1099 rate equals a W2 salary in Illinois?
Enter the W2 rate and the calculator returns the break-even 1099 hourly rate that nets the same annual take-home in Illinois, factoring self-employment tax and Illinois's income tax.
Does Illinois state income tax change the math?
Yes. Illinois's income tax reduces take-home for both 1099 and W2 workers, so the break-even 1099 rate is pre-filled with a 5.0% estimate. Edit it to match your bracket.
Are these numbers tax advice?
No. They are editable 2025 planning estimates. Effective tax rates depend on income, filing status, and deductions — confirm with a licensed accountant.