State Commission Tax Calculator
State income tax on commission earnings for employees and contractors, with the amount you keep.
About State Commission Tax Calculator
State Commission Tax Calculator — estimates the state income tax on commission earnings and the amount you keep. Commission is wages for an employee and self-employment income for an independent contractor, and the state taxes both as ordinary income. This applies the state income-tax rate to the commission and shows the remainder. If you are paid on a 1099 rather than a W-2 the state figure still applies, but federal self-employment tax applies on top - use the self-employment tax calculator for that part. Only the state component is calculated here.
Formulas
Commission state tax
Commission state tax = commission amount × state rate
Commission net
Commission net = commission amount - commission state tax
Worked example
With the default values below, State Commission Tax Calculator returns State Tax on Commission of $495.00. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Stateone of Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
- Illinois
- Your state tax rateaccepts 0–60
- Commissionminimum 0
- 10,000
Results
- State Tax on Commission
- $495.00
- Amount After State Tax
- $9,505.00
- State
- Illinois
- State rate used
- 4.95% (verified)
- Tax year
- 2026
- Source
- https://tax.illinois.gov/research/taxrates/income.html
Step by step
- 1Values used
- 2Commission state tax
- 3Commission net
- 4State Tax on Commission= 495.00
- 5Amount After State Tax= 9,505.00
- 6State= Illinois
- 7State rate used= 4.95% (verified)
- 8Tax year= 2026
- 9Source= https://tax.illinois.gov/research/taxrates/income.html
Assumptions and limits
- The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- State component only and an estimate. Federal income tax, FICA and any local tax are not included.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
State component only and an estimate. Federal income tax, FICA and any local tax are not included.
Frequently Asked Questions
Is commission taxed differently from salary?
It is the same income on your return. The difference is in withholding: commission paid separately from regular wages is often treated as supplemental pay and withheld at a flat rate, while commission paid with your salary is usually withheld through the normal tables.
What if I am a contractor rather than an employee?
Nothing is withheld for you, so the state tax estimated here is something you have to set aside yourself, usually through quarterly estimated payments. Federal self-employment tax of 15.3 percent on 92.35 percent of net earnings applies as well.
How do draw-against-commission plans affect the tax estimate?
A draw is an advance against future commissions. The draw itself is taxable wages when paid. When you earn commissions, they offset the draw. For tax purposes, you are taxed on the total commissions earned during the year, not the draw amount. Enter your projected annual commission earnings, not the draw, for an accurate state tax estimate.
Are stock options or RSUs treated as commission for state tax?
No. Stock options and restricted stock units (RSUs) are taxed as compensation when exercised or vested, but they follow different withholding rules (often supplemental rate for federal). This calculator is for cash commission income. For equity compensation, use the stock option tax calculator and add the state rate separately.
Why does it say the rate is not verified for my state?
For commission tax, the old per-state page carried a flat rate that either could not be matched to a current revenue department publication, or the state uses a graduated schedule that a single rate cannot represent. Rather than show a number with no provenance, the calculator asks you for the rate from your own notice or return and then uses exactly that.
How do I use my own rate for commission tax?
Type your commission tax rate into the state rate field. Anything you enter wins over the built-in rate, and the result panel then labels the rate as yours rather than verified. Clearing the field goes back to the verified rate. A rate of 0 counts as blank, so to model a state with no income tax select one that has a verified 0%.
Which tax year does the commission state rate belong to?
The result panel prints the tax year for the commission rate. Each verified rate is stored with the tax year it was published for and a link to the page it was read from, so you can check it before relying on the figure. Unverified states show neither, because there is nothing to show.