Indiana Self-Employment Tax Calculator (2026)

Federal self-employment tax, federal income tax and Indiana state income tax on 1099 income, plus the quarterly estimated payment to set aside.

How the 2026 numbers are calculated

1. Net profit is your 1099 income minus deductible business expenses (Schedule C).
2. Self-employment tax is 15.3% of 92.35% of net profit: 12.4% Social Security on the first $184,500 of combined wages and net earnings, plus 2.9% Medicare on all of it. An extra 0.9% Medicare tax applies above $200,000 ($250,000 married filing jointly).
3. Adjusted gross income is net profit plus any W-2 wages, minus half of the self-employment tax.
4. The standard deduction ($16,100 single, $32,200 married filing jointly, $24,150 head of household) and the 20% qualified business income deduction reduce taxable income. The QBI deduction starts phasing out above $201,750 of taxable income ($403,500 joint).
5. Federal income tax is applied to what is left using the 2026 brackets for your filing status.
6. The child tax credit ($2,200 per child under 17, $500 per other dependent) reduces income tax; up to $1,700 per child is refundable and can offset self-employment tax.
7. The earned income credit for filers with children — up to $4,427 with one child, $7,316 with two, $8,231 with three or more — is fully refundable and phases out above $23,890 of income ($31,160 joint).
8. Indiana income tax: calculated under the state's own rules, described below.

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).

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's per-quarter figure combines federal and state so you can set aside one amount.

• Federal payment 1: April 15, 2026
• Federal payment 2: June 15, 2026
• Federal payment 3: September 15, 2026
• Federal payment 4: January 15, 2027

The calculator splits your total into four equal payments. To avoid an underpayment penalty you can instead pay 100% of last year's total tax (110% if your prior-year AGI was over $150,000) spread across the four dates.

Common questions

Data sources and status