Indiana Self-Employment Tax Calculator

Calculate your self-employment tax, federal income tax, and Indiana state income tax as a freelancer or 1099 contractor. Indiana has a flat income tax rate of 3.

Annual Tax Breakdown

1099 Income
$85,000
Business Expenses
-$10,000
Net Profit
$75,000
Net Earnings (92.35%)(SE tax base)
$69,263
Social Security (12.4%)
-$8,589
Medicare (2.9%+)
-$2,009
Total SE Tax
-$10,597
SE Deduction (50%)(reduces income tax)
$5,299
Federal Income Tax
-$6,794
State Income Tax
-$2,288
Total Tax Owed
$19,679

Summary

Total Income
$75,000
Total Taxes
-$19,679
After-Tax Income
$55,321
Effective Tax Rate(on total income)
26.2%

Quarterly Estimated Payments

Q1 (Jan-Mar)Due April 15
$4,920
Q2 (Apr-May)Due June 15
$4,920
Q3 (Jun-Aug)Due September 15
$4,920
Q4 (Sep-Dec)Due January 15 (next year)
$4,920
Each Quarterly Payment
$4,920

Tax Breakdown

See your complete freelancer financial picture

Your estimated quarterly tax payment is $4,920. Model your freelance income alongside expenses, savings, and investments in the full simulator.

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Indiana Tax Overview for Freelancers

Indiana has a flat income tax rate of 3.05%, one of the lowest in the nation. However, most Indiana counties also levy local income taxes. Self-employed individuals in Indiana pay federal self-employment tax (15.3%) plus federal income tax, and Indiana state income tax on their net self-employment earnings.

Flat 3.05% rate (very low)County-level income taxes (1-3%)Low cost of livingGrowing tech sector in Indianapolis

Self-Employment Taxes in Indiana

If you work as a freelancer or independent contractor in Indiana, your tax situation involves multiple layers: federal self-employment tax, federal income tax, and Indiana state income tax. Understanding how each component works helps you plan your quarterly estimated payments and maximize your deductions.

Indiana Income Tax for Freelancers

Indiana has a flat income tax rate of 3.05%, one of the lowest in the nation. However, most Indiana counties also levy local income taxes.

Cost of Living for Freelancers in Indiana

Indiana's cost of living is about 10% below the national average, with affordable housing throughout the state. As a freelancer in Indiana, your effective earnings depend not just on your tax rate but also on what your after-tax income can buy. Consider local costs for housing, coworking spaces, and daily expenses when setting your rates.

Financial Tips for Indiana Freelancers

  • Indiana's 3.05% state rate is among the lowest, but county taxes of 1-3% add to your total burden
  • Indianapolis' growing tech and life sciences sectors offer competitive employment
  • Indiana has a relatively low cost of living, especially outside of Indianapolis
  • Indiana taxes Social Security for higher earners — plan accordingly

Key Indiana Tax Features

  • Flat 3.05% rate (very low)
  • County-level income taxes (1-3%)
  • Low cost of living
  • Growing tech sector in Indianapolis

Model Your Indiana Freelance Finances Over Time

This calculator shows your Indiana tax bill. Trajectoryy's full simulator models your freelance income alongside expenses, savings, investments, and more — month by month for years into the future.

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Compare Indiana with Other States

Michigan4.25% top rateOhio3.5% top rateIllinois4.95% top rateCalifornia13.3% top rateNew York10.9% top rateNew Jersey10.75% top rate

Frequently Asked Questions

How is self-employment tax calculated in Indiana?
Self-employed workers in Indiana pay federal self-employment tax (15.3% on 92.35% of net earnings), federal income tax, and Indiana state income tax. Indiana has a flat income tax rate of 3.05%, one of the lowest in the nation. However, most Indiana counties also levy local income taxes.
How much will I owe in quarterly taxes as a freelancer in Indiana?
Your quarterly estimated tax payment in Indiana depends on your total tax liability — including SE tax, federal income tax, and Indiana state income tax. Use the calculator above to estimate your quarterly payments. As a general rule, freelancers should set aside 25-35% of their net income for taxes.
What business deductions are available for Indiana freelancers?
Freelancers in Indiana can deduct the same federal business expenses as in any state: home office, equipment, software, health insurance, vehicle expenses, and more. These deductions also reduce your Indiana state taxable income, providing additional state tax savings.
Does Indiana have any special taxes for self-employed workers?
Indiana does not have a separate self-employment tax. However, your net self-employment income is subject to Indiana's regular income tax (3.05% top rate) in addition to federal self-employment tax and federal income tax.
Should I form an LLC or S-Corp as a freelancer in Indiana?
The decision to form an LLC or S-Corp in Indiana depends on your income level. Generally, if your net self-employment income exceeds $50,000-$60,000, an S-Corp election may save you money by allowing you to pay yourself a reasonable salary (subject to FICA/Medicare) while taking the rest as distributions (not subject to SE tax). Consult a Indiana tax professional for advice specific to your situation.

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State Tax-$2,384
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Net Pay$50,181
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