Indiana Self-Employment Tax Calculator (2026)
Federal self-employment tax, federal income tax and Indiana state income tax on 1099 income, plus how much to set aside for each estimated payment.
Federal 2026 and Indiana 2026 data checked against the official publications, last on 2026-09-05 Runs in your browser — nothing you type is sent anywhere, not even when you reload or share the link No sign-up Methodology and data status
- Total tax
- $16,748
- Effective rate
- 23.3%
- Set aside per quarter
- $4,187
- After-tax income
- $55,252
| Breakdown | |
|---|---|
| Net profit (income − expenses) | $72,000 |
| Self-employment tax | $10,173 |
| Social Security (12.4%) | $8,245 |
| Medicare (2.9%) | $1,928 |
| Federal income tax | $4,630 |
| Adjusted gross income | $66,913 |
| Standard deduction | −$16,100 |
| Qualified business income deduction (20%) | −$10,163 |
| Taxable income · marginal rate 12.0% | $40,651 |
| Indiana income tax | $1,944 |
| Total federal + state | $16,748 |
Local income tax (never in the total above): Every Indiana county levies its own income tax on the same base — 0.5% (Porter) to 3.0% (Randolph) for 2026, 2.02% in Marion County (Indianapolis) — based on the county of residence on January 1. It is not included here.
Amounts to set aside, not bills: federal $3,701 for each Form 1040-ES installment (Apr 15, Jun 15, Sep 15, Jan 15). Indiana: $486 per installment on its own schedule. For the safe-harbor amount and payments you have already made, use the quarterly calculator with these inputs.
Indiana and self-employment income
Indiana's flat rate is stepping down: 3.0% for 2025, 2.95% for 2026 and 2.9% for 2027. There is no standard deduction; each filer gets a $1,000 exemption, each dependent $1,000, and each dependent child another $1,500 ($3,000 in the first year claimed). Indiana starts from federal AGI, so the deduction for half of self-employment tax carries over; the QBI deduction does not. The larger surprise is the county income tax — every county levies one, from 0.5% to 3.0% (2.02% in Indianapolis) on the same income — which this calculator does not include.
Indiana rules used by this calculator (2026)
- Indiana applies a flat 2.95% rate for 2026.
- There is no standard deduction.
- Each filer gets a $1,000 personal exemption.
- Each child under 17 adds a $2,500 deduction.
- Indiana's earned income credit is 10% of the federal credit, refundable; the calculator applies it.
- Indiana starts from federal AGI, so the deductible half of self-employment tax reduces state income as well.
- Every Indiana county levies its own income tax on the same base — 0.5% (Porter) to 3.0% (Randolph) for 2026, 2.02% in Marion County (Indianapolis) — based on the county of residence on January 1. It is not included here.
What an Indiana freelancer may still owe
- Indiana requires estimated payments (Form ES-40) when you expect to owe $1,000 or more in state and county tax.
- County income tax is collected on the state return at the rate of your county of residence on January 1; it is not included here. Applied here: Indiana's refundable earned income credit (10% of the federal credit).
What Indiana costs at three levels of profit (2026)
A single filer with no dependents and no other income, taking the standard deduction. The state column is Indiana's own tax after its deductions, exemptions and credits.
| Net profit | Federal | Indiana | Total | Effective rate |
|---|---|---|---|---|
| $50,000 | $9,732 | $1,341 | $11,073 | 22.15% |
| $75,000 | $15,495 | $2,027 | $17,522 | 23.36% |
| $100,000 | $22,365 | $2,712 | $25,077 | 25.08% |
At $75,000 of profit, Indiana takes $2,027 — 11.57% of the total tax bill. Change any input in the calculator above to see your own figures.
How the federal part is worked out
Net profit is 1099 income less business expenses (Schedule C). Self-employment tax is 15.3% of 92.35% of that profit — 12.4% Social Security up to $184,500 of combined wages and earnings, 2.9% Medicare on all of it. Half of that tax, the $16,100 standard deduction ($32,200 joint) and the 20% qualified business income deduction come off before the 2026 brackets are applied; the child tax credit and the earned income credit then reduce what is left, and the refundable parts can offset self-employment tax. The methodology page sets out the full sequence and every rule the calculator leaves out, including how Indiana's figures are derived.
Quarterly estimated tax deadlines (2026)
If you expect to owe $1,000 or more of federal tax for the year, the IRS expects four estimated payments (Form 1040-ES). Indiana runs its own estimated-payment schedule with its own threshold (see above); the calculator shows the federal installment and the Indiana installment separately, and one combined amount to set aside each quarter.
The 2026 dates are April 15, 2026, June 15, 2026, September 15, 2026, January 15, 2027. The federal amount is split into four equal Form 1040-ES installments after any withholding you entered; paying 100% of last year's tax instead (110% above $150,000 of prior-year AGI) also avoids the penalty. The quarterly calculator works that out and subtracts what you have already paid, and the guide to the due dates explains the rule.
Common questions
Does Indiana tax self-employment income differently from wages?
For state income tax, net profit from self-employment is ordinary income like wages. The self-employment tax itself is federal only; Indiana does not add a state equivalent.
Is half of self-employment tax really deductible?
Yes, for federal tax. The employer-equivalent half is an adjustment to income on Schedule 1, which lowers your AGI and therefore your federal income tax. It does not reduce the self-employment tax itself.
Does an LLC change these numbers?
For federal income tax and self-employment tax, a single-member LLC taxed as a sole proprietorship follows exactly the calculation shown here. State and local obligations can still differ: an LLC may be a taxable entity for a state's franchise, gross-receipts or excise tax, and may owe registration or licence fees a sole proprietor does not — Indiana's are listed above. Electing S-corporation status changes the federal arithmetic too (salary plus distributions) and is outside this tool's scope.
What if I moved to Indiana during the year?
Income earned while you were a resident of another state is taxable there under that state's rules. This calculator assumes all income was earned as an Indiana resident.
Data sources and status
Federal figures for 2026: verified · last verified 2026-09-05 · the revenue procedures and forms they were read from, with every other data set
Indiana figures for 2026: verified · last verified 2026-09-08
- Indiana Department of Revenue : Departmental Notice #1 (R46/01-26, effective 2026-01-01): 'For 2026, the state adjusted gross income tax rate for individuals is 2.95%'; withholding tables B and C using the unchanged $1,000 / $1,500 / $3,000 exemption amounts; county rates 0.5%–3.0%
- Indiana Department of Revenue : 'Rates, Fees & Penalties' page (2.95% for 2026, 2.90% for 2027) and the DOR Tax Chapter; IC 6-3-2-1 as amended by H.E.A. 1001-2023 (step-downs), text confirmed only through search snippets
- Indiana Department of Revenue : 2025 IT-40 and Schedule 3 for the unindexed exemption mechanics
- Indiana Department of Revenue : 2026 Legislative Synopsis: S.E.A. 243 (conformity date moved to 2026-01-01, retroactive to tax year 2026; 2026-only state deductions for tips, overtime and car-loan interest) and S.E.A. 212 (conformity to four 2025 federal provisions retroactive to tax year 2025)
- Indiana Department of Revenue : 2025 Schedule IN-EIC and IT-40 booklet: Indiana earned income credit of 10% of the federal credit as claimed, refundable, for filers who claimed the federal credit with federal AGI under $68,675 (the booklet prints $68,650); Information Bulletins #92 and #119 (computed under IRC §32 as of 2023-01-01, no practical difference)
Indiana Department of Revenue · How figures are checked · Corrections log
Other states
Paying as you go? The quarterly estimated tax calculator applies the federal safe harbor and subtracts what you have already paid.