diff --git a/ethpm/contract.py b/ethpm/contract.py
index d5d3c09b42..8879b4e293 100644
--- a/ethpm/contract.py
+++ b/ethpm/contract.py
@@ -27,6 +27,9 @@
 from ethpm.validation.misc import (
     validate_empty_bytes,
 )
+from web3._utils.compat import (
+    Self,
+)
 from web3._utils.validation import (
     validate_address,
 )
@@ -59,7 +62,7 @@ def __init__(self, address: bytes, **kwargs: Any) -> None:
         super().__init__(address=address, **kwargs)  # type: ignore
 
     @classmethod
-    def factory(cls, w3: "Web3", class_name: str = None, **kwargs: Any) -> Contract:
+    def factory(cls, w3: "Web3", class_name: str = None, **kwargs: Any) -> Type[Self]:
         dep_link_refs = kwargs.get("unlinked_references")
         bytecode = kwargs.get("bytecode")
         needs_bytecode_linking = False
diff --git a/newsfragments/2997.misc.rst b/newsfragments/2997.misc.rst
new file mode 100644
index 0000000000..4a7b3d8c51
--- /dev/null
+++ b/newsfragments/2997.misc.rst
@@ -0,0 +1 @@
+ Uses `Self` Type in contract factory methods
\ No newline at end of file
diff --git a/setup.py b/setup.py
index b6572d9871..f169919148 100644
--- a/setup.py
+++ b/setup.py
@@ -13,7 +13,7 @@
         "black>=22.1.0",
         "flake8==3.8.3",
         "isort>=5.11.0",
-        "mypy==0.910",
+        "mypy>=1.0.0",
         "types-setuptools>=57.4.4",
         "types-requests>=2.26.1",
         "types-protobuf==3.19.13",
@@ -80,8 +80,7 @@
         "protobuf>=4.21.6",
         "pywin32>=223;platform_system=='Windows'",
         "requests>=2.16.0",
-        # remove typing_extensions after python_requires>=3.8, see web3._utils.compat
-        "typing-extensions>=3.7.4.1,<5;python_version<'3.8'",
+        "typing-extensions>=4.0.1,<5",
         "websockets>=10.0.0",
     ],
     python_requires=">=3.7.2",
diff --git a/tox.ini b/tox.ini
index d3051acf80..4b9da4d5e1 100644
--- a/tox.ini
+++ b/tox.ini
@@ -53,7 +53,7 @@ commands=
     flake8 {toxinidir}/web3 {toxinidir}/ens {toxinidir}/ethpm {toxinidir}/tests --exclude {toxinidir}/ethpm/ethpm-spec,{toxinidir}/**/*_pb2.py
     black {toxinidir}/ens {toxinidir}/ethpm {toxinidir}/web3 {toxinidir}/tests {toxinidir}/setup.py --exclude /ethpm/ethpm-spec/|/ethpm/_utils/protobuf/ipfs_file_pb2\.py --check
     isort --check-only --diff {toxinidir}/web3/ {toxinidir}/ens/ {toxinidir}/ethpm/ {toxinidir}/tests/
-    mypy -p web3 -p ethpm -p ens --config-file {toxinidir}/mypy.ini
+    mypy -p web3 -p ens --config-file {toxinidir}/mypy.ini
 
 [testenv:lint]
 basepython: python
diff --git a/web3/_utils/compat/__init__.py b/web3/_utils/compat/__init__.py
index 72ef20f19a..3cb1058791 100644
--- a/web3/_utils/compat/__init__.py
+++ b/web3/_utils/compat/__init__.py
@@ -1,16 +1,8 @@
-import sys
+# Changelog for `typing_extensions` for checking which types were added when
+# https://github.com/python/typing_extensions/blob/main/CHANGELOG.md
 
-# remove once web3 supports python>=3.8
-# Types was added to typing in 3.8
-if sys.version_info >= (3, 8):
-    from typing import (
-        Literal,
-        Protocol,
-        TypedDict,
-    )
-else:
-    from typing_extensions import (  # noqa: F401
-        Literal,
-        Protocol,
-        TypedDict,
-    )
+# Note that we do not need to explicitly check for python version here,
+# because `typing_extensions` will do it for us and either import from `typing`
+# or use the back-ported version of the type.
+
+from typing_extensions import Literal, Protocol, TypedDict, Self  # noqa: F401
diff --git a/web3/_utils/contract_sources/compile_contracts.py b/web3/_utils/contract_sources/compile_contracts.py
index 8c4596838c..37928c8885 100644
--- a/web3/_utils/contract_sources/compile_contracts.py
+++ b/web3/_utils/contract_sources/compile_contracts.py
@@ -48,6 +48,8 @@
 import re
 from typing import (
     Any,
+    Dict,
+    List,
 )
 
 import solcx
@@ -79,7 +81,7 @@
 files_to_compile = [user_filename] if user_filename else all_dot_sol_files
 
 
-def _compile_dot_sol_files(dot_sol_filename: str) -> dict[str, Any]:
+def _compile_dot_sol_files(dot_sol_filename: str) -> Dict[str, Any]:
     compiled = solcx.compile_files(
         [f"./{dot_sol_filename}"],
         output_values=["abi", "bin", "bin-runtime"],
@@ -88,10 +90,10 @@ def _compile_dot_sol_files(dot_sol_filename: str) -> dict[str, Any]:
 
 
 def _get_compiled_contract_data(
-    sol_file_output: dict[str, dict[str, str]],
+    sol_file_output: Dict[str, Dict[str, str]],
     dot_sol_filename: str,
     contract_name: str = None,
-) -> dict[str, str]:
+) -> Dict[str, str]:
     if not contract_name:
         contract_name = dot_sol_filename.replace(".sol", "")
 
@@ -111,7 +113,7 @@ def _get_compiled_contract_data(
 contracts_in_file = {}
 
 
-def compile_files(file_list: list[str]) -> None:
+def compile_files(file_list: List[str]) -> None:
     for filename in file_list:
         with open(os.path.join(os.getcwd(), filename), "r") as f:
             dot_sol_file = f.readlines()
diff --git a/web3/_utils/events.py b/web3/_utils/events.py
index 37043f658c..1411f7bdba 100644
--- a/web3/_utils/events.py
+++ b/web3/_utils/events.py
@@ -140,7 +140,7 @@ def construct_event_topic_set(
         for arg, arg_options in zipped_abi_and_args
     ]
 
-    topics = list(normalize_topic_list([event_topic] + encoded_args))  # type: ignore
+    topics = list(normalize_topic_list([event_topic] + encoded_args))
     return topics
 
 
@@ -394,12 +394,12 @@ def address(self, value: ChecksumAddress) -> None:
     def ordered_args(self) -> Tuple[Any, ...]:
         return tuple(map(self.args.__getitem__, self._ordered_arg_names))
 
-    @property  # type: ignore
+    @property
     @to_tuple
     def indexed_args(self) -> Tuple[Any, ...]:
         return tuple(filter(is_indexed, self.ordered_args))
 
-    @property  # type: ignore
+    @property
     @to_tuple
     def data_args(self) -> Tuple[Any, ...]:
         return tuple(filter(is_not_indexed, self.ordered_args))
@@ -432,8 +432,8 @@ def deploy(self, w3: "Web3") -> "LogFilter":
         if not isinstance(w3, web3.Web3):
             raise ValueError(f"Invalid web3 argument: got: {w3!r}")
 
-        for arg in AttributeDict.values(self.args):
-            arg._immutable = True
+        for arg in AttributeDict.values(self.args):  # type: ignore[arg-type]
+            arg._immutable = True  # type: ignore[attr-defined]
         self._immutable = True
 
         log_filter = cast("LogFilter", w3.eth.filter(self.filter_params))
@@ -450,8 +450,8 @@ async def deploy(self, async_w3: "AsyncWeb3") -> "AsyncLogFilter":
         if not isinstance(async_w3, web3.AsyncWeb3):
             raise ValueError(f"Invalid web3 argument: got: {async_w3!r}")
 
-        for arg in AttributeDict.values(self.args):
-            arg._immutable = True
+        for arg in AttributeDict.values(self.args):  # type: ignore[arg-type]
+            arg._immutable = True  # type: ignore[attr-defined]
         self._immutable = True
 
         log_filter = await async_w3.eth.filter(self.filter_params)
diff --git a/web3/_utils/module_testing/web3_module.py b/web3/_utils/module_testing/web3_module.py
index ef3243bac3..7590e8b7e5 100644
--- a/web3/_utils/module_testing/web3_module.py
+++ b/web3/_utils/module_testing/web3_module.py
@@ -229,7 +229,7 @@ def test_solidity_keccak(
         expected: HexBytes,
     ) -> None:
         if isinstance(expected, type) and issubclass(expected, Exception):
-            with pytest.raises(expected):  # type: ignore
+            with pytest.raises(expected):
                 w3.solidity_keccak(types, values)
             return
 
diff --git a/web3/contract/async_contract.py b/web3/contract/async_contract.py
index 3eb37be398..5b90775134 100644
--- a/web3/contract/async_contract.py
+++ b/web3/contract/async_contract.py
@@ -9,6 +9,7 @@
     List,
     Optional,
     Sequence,
+    Type,
     cast,
 )
 
@@ -33,6 +34,9 @@
 from web3._utils.async_transactions import (
     fill_transaction_defaults as async_fill_transaction_defaults,
 )
+from web3._utils.compat import (
+    Self,
+)
 from web3._utils.contracts import (
     async_parse_block_identifier,
     parse_block_identifier_no_extra_call,
@@ -239,7 +243,7 @@ def __call__(self, *args: Any, **kwargs: Any) -> "AsyncContractFunction":
         return clone
 
     @classmethod
-    def factory(cls, class_name: str, **kwargs: Any) -> "AsyncContractFunction":
+    def factory(cls, class_name: str, **kwargs: Any) -> Self:
         return PropertyCheckingFactory(class_name, (cls,), kwargs)(kwargs.get("abi"))
 
     async def call(
@@ -449,7 +453,7 @@ def __init__(self, address: Optional[ChecksumAddress] = None) -> None:
     @classmethod
     def factory(
         cls, w3: "AsyncWeb3", class_name: Optional[str] = None, **kwargs: Any
-    ) -> "AsyncContract":
+    ) -> Type[Self]:
         kwargs["w3"] = w3
 
         normalizers = {
@@ -460,7 +464,7 @@ def factory(
         }
 
         contract = cast(
-            AsyncContract,
+            Type[Self],
             PropertyCheckingFactory(
                 class_name or cls.__name__,
                 (cls,),
@@ -491,7 +495,7 @@ def factory(
         return contract
 
     @classmethod
-    def constructor(cls, *args: Any, **kwargs: Any) -> "AsyncContractConstructor":
+    def constructor(cls, *args: Any, **kwargs: Any) -> Self:
         """
         :param args: The contract constructor arguments as positional arguments
         :param kwargs: The contract constructor arguments as keyword arguments
@@ -549,7 +553,7 @@ def __init__(
 
             self._functions = filter_by_type("function", self.abi)
             for func in self._functions:
-                fn: AsyncContractFunction = AsyncContractFunction.factory(
+                fn = AsyncContractFunction.factory(
                     func["name"],
                     w3=self.w3,
                     contract_abi=self.abi,
diff --git a/web3/contract/base_contract.py b/web3/contract/base_contract.py
index a82344e2a3..c9570b6b66 100644
--- a/web3/contract/base_contract.py
+++ b/web3/contract/base_contract.py
@@ -454,8 +454,9 @@ def _get_call_txparams(self, transaction: Optional[TxParams] = None) -> TxParams
             call_transaction.setdefault("to", self.address)
         if self.w3.eth.default_account is not empty:
             # type ignored b/c check prevents an empty default_account
-            call_transaction.setdefault(
-                "from", self.w3.eth.default_account  # type: ignore
+            call_transaction.setdefault(  # type: ignore
+                "from",
+                self.w3.eth.default_account,  # type: ignore
             )
 
         if "to" not in call_transaction:
@@ -485,7 +486,7 @@ def _transact(self, transaction: Optional[TxParams] = None) -> TxParams:
             transact_transaction.setdefault("to", self.address)
         if self.w3.eth.default_account is not empty:
             # type ignored b/c check prevents an empty default_account
-            transact_transaction.setdefault(
+            transact_transaction.setdefault(  # type: ignore
                 "from", self.w3.eth.default_account  # type: ignore
             )
 
@@ -516,7 +517,7 @@ def _estimate_gas(self, transaction: Optional[TxParams] = None) -> TxParams:
             estimate_gas_transaction.setdefault("to", self.address)
         if self.w3.eth.default_account is not empty:
             # type ignored b/c check prevents an empty default_account
-            estimate_gas_transaction.setdefault(
+            estimate_gas_transaction.setdefault(  # type: ignore
                 "from", self.w3.eth.default_account  # type: ignore
             )
 
@@ -1041,7 +1042,7 @@ def _estimate_gas(self, transaction: Optional[TxParams] = None) -> TxParams:
 
         if self.w3.eth.default_account is not empty:
             # type ignored b/c check prevents an empty default_account
-            estimate_gas_transaction.setdefault(
+            estimate_gas_transaction.setdefault(  # type: ignore
                 "from", self.w3.eth.default_account  # type: ignore
             )
 
@@ -1060,7 +1061,7 @@ def _get_transaction(self, transaction: Optional[TxParams] = None) -> TxParams:
 
         if self.w3.eth.default_account is not empty:
             # type ignored b/c check prevents an empty default_account
-            transact_transaction.setdefault(
+            transact_transaction.setdefault(  # type: ignore
                 "from", self.w3.eth.default_account  # type: ignore
             )
 
diff --git a/web3/contract/contract.py b/web3/contract/contract.py
index abb2a0ddc6..ef0941bc3d 100644
--- a/web3/contract/contract.py
+++ b/web3/contract/contract.py
@@ -8,6 +8,7 @@
     List,
     Optional,
     Sequence,
+    Type,
     cast,
 )
 
@@ -29,6 +30,9 @@
     filter_by_type,
     receive_func_abi_exists,
 )
+from web3._utils.compat import (
+    Self,
+)
 from web3._utils.contracts import (
     parse_block_identifier,
 )
@@ -235,7 +239,7 @@ def __call__(self, *args: Any, **kwargs: Any) -> "ContractFunction":
         return clone
 
     @classmethod
-    def factory(cls, class_name: str, **kwargs: Any) -> "ContractFunction":
+    def factory(cls, class_name: str, **kwargs: Any) -> Self:
         return PropertyCheckingFactory(class_name, (cls,), kwargs)(kwargs.get("abi"))
 
     def call(
@@ -448,7 +452,7 @@ def __init__(self, address: Optional[ChecksumAddress] = None) -> None:
     @classmethod
     def factory(
         cls, w3: "Web3", class_name: Optional[str] = None, **kwargs: Any
-    ) -> "Contract":
+    ) -> Type[Self]:
         kwargs["w3"] = w3
 
         normalizers = {
@@ -459,7 +463,7 @@ def factory(
         }
 
         contract = cast(
-            Contract,
+            Type[Self],
             PropertyCheckingFactory(
                 class_name or cls.__name__,
                 (cls,),
@@ -549,7 +553,7 @@ def __init__(
 
             self._functions = filter_by_type("function", self.abi)
             for func in self._functions:
-                fn: ContractFunction = ContractFunction.factory(
+                fn = ContractFunction.factory(
                     func["name"],
                     w3=self.w3,
                     contract_abi=self.abi,
diff --git a/web3/main.py b/web3/main.py
index 3d10898d80..a59fdbef4a 100644
--- a/web3/main.py
+++ b/web3/main.py
@@ -335,7 +335,7 @@ def pm(self) -> "PM":
         if hasattr(self, "_pm"):
             # ignored b/c property is dynamically set
             # via enable_unstable_package_management_api
-            return self._pm  # type: ignore
+            return self._pm
         else:
             raise AttributeError(
                 "The Package Management feature is disabled by default until "