What is Indiana's income tax rate for self-employed workers in 2026?

Indiana charges a flat state rate stepping down under current law — 3.0% for 2026 — plus your county's local income tax, which typically runs 1% to 3%.

Does Indiana have a county income tax for gig workers?

Yes. Every Indiana county levies a local income tax on residents, applied to the same net income as the state tax. Your rate is set by the county where you live on January 1 of the tax year.

When are Indiana quarterly estimated taxes due?

Indiana Form ES-40 payments follow the federal calendar: April 15, June 15, September 15, 2026 and January 15, 2027. You must pay estimates if you expect to owe $1,000 or more of Indiana tax.

How much should an Indiana gig worker set aside for taxes?

Around 22% to 28% of net profit typically covers federal income tax, the 15.3% self-employment tax, the 3.0% state rate and your county tax combined.

Does the mileage deduction reduce Indiana tax?

Yes. Indiana starts from federal adjusted gross income, so the $0.70 per business mile 2026 rate reduces your state and county taxable income automatically.

Indiana Self-Employed Tax Calculator

Federal income tax + 15.3% SE tax + Indiana's flat state tax on 2026 1099 income — with the county income tax most guides skip.

Indiana's state rate is a low flat tax, but every county adds its own local income tax (LIT) on top — anywhere from about 1% to 3% depending on where you live on January 1. The calculator covers the federal and state layers; the county table below shows what to add for your county.

Self-employed income & expenses

Estimate federal + SE + state tax for the 2026 tax year in one pass.

Annual 1099 income

Business miles driven

Other business expenses

Self-employed health insurance

Retirement contributions (SEP / Solo 401k)

W-2 income (if any)

Federal tax withheld

Filing status

State

Estimated total tax bill

$11,953

Refund / owed

-$11,953

Effective rate

19.9%

Detailed breakdown

Mileage deduction$5,600

Total business expenses$8,100

Net self-employment income$51,900

Self-employment tax (15.3%)$7,333

½ SE deduction (above-the-line)$3,667

Adjusted gross income$48,233

Taxable income$32,133

Federal income tax$3,608

State tax (est.)$1,012

Quarterly estimated payment$2,832

Marginal rate15.2%

Indiana city tax rates for self-employed workers (2026)

Indiana's state income tax is a low flat rate, but the surprise is at the county level: every Indiana county levies its own local income tax (LIT) on residents, typically between 1% and 3%. County rates are set where you live on January 1 of the tax year.

Local and state tax rates for self-employed residents of major Indiana cities in 2026
City	Local rate	State rate	What gig workers should know
Indianapolis (Marion)	2.02% county income tax	3.0% flat (2026)	Combined ~5% state + county; no separate city business tax on services.
Fort Wayne (Allen)	1.48% county income tax	3.0% flat	Lower county rate; registration only if you sell taxable goods.
Evansville (Vanderburgh)	1.20% county income tax	3.0% flat	One of the cheaper big-city counties for self-employed residents.
South Bend (St. Joseph)	1.75% county income tax	3.0% flat	County tax applies to your whole net profit, not just city earnings.
Carmel (Hamilton)	1.00% county income tax	3.0% flat	Low LIT makes the Indy suburbs popular with freelancers.

Indiana local and state filing deadlines

Q1 IN Form ES-40April 15, 2026
Required if you expect to owe $1,000 or more of Indiana tax after credits.
Q2 IN Form ES-40June 15, 2026
Second state installment; county tax is included in the same voucher.
Q3 IN Form ES-40September 15, 2026
Third installment.
Q4 IN Form ES-40January 15, 2027
Final installment for the 2026 year.
IN Form IT-40 returnApril 15, 2027
Extension to November 15, 2027 to file, not to pay.
County of residence updateJanuary 1 each year
Your LIT rate locks to the county where you live on January 1 — moving mid-year does not change that year's rate.
Q1 federal 1040-ESApril 15, 2026
Covers income earned January 1 – March 31.
Q2 federal 1040-ESJune 15, 2026
Covers April 1 – May 31.
Q3 federal 1040-ESSeptember 15, 2026
Covers June 1 – August 31.
Q4 federal 1040-ESJanuary 15, 2027
Covers September 1 – December 31.

Indiana's flat state rate steps down under current law, landing at 3.0% for 2026 on its way toward 2.9%.
County income tax is the local layer most guides miss — budget an extra 1% to 3% of net profit depending on your county.
Indiana starts from federal AGI, so the $0.70 per business mile 2026 deduction reduces both state and county tax.

Frequently asked questions

What is Indiana's income tax rate for self-employed workers in 2026?: Indiana charges a flat state rate stepping down under current law — 3.0% for 2026 — plus your county's local income tax, which typically runs 1% to 3%.
Does Indiana have a county income tax for gig workers?: Yes. Every Indiana county levies a local income tax on residents, applied to the same net income as the state tax. Your rate is set by the county where you live on January 1 of the tax year.
When are Indiana quarterly estimated taxes due?: Indiana Form ES-40 payments follow the federal calendar: April 15, June 15, September 15, 2026 and January 15, 2027. You must pay estimates if you expect to owe $1,000 or more of Indiana tax.
How much should an Indiana gig worker set aside for taxes?: Around 22% to 28% of net profit typically covers federal income tax, the 15.3% self-employment tax, the 3.0% state rate and your county tax combined.
Does the mileage deduction reduce Indiana tax?: Yes. Indiana starts from federal adjusted gross income, so the $0.70 per business mile 2026 rate reduces your state and county taxable income automatically.