Finance · Indiana · Tax year 2026
Indiana Self-Employment Tax Calculator 2026
On $100,000 of 2026 self-employment profit, a single Indiana sole proprietor with no other income owes about $25,077: $14,130 of self-employment tax, $8,235 of federal income tax, and $2,712 of Indiana income tax. That is 25.1% of profit, or $6,269 for each quarterly estimated payment.
Against its neighbors, the same $100,000 of profit costs $1,743 more in Illinois and $2,712 less in Ohio.
- State income tax
- 2.95% flat
- Indiana tax on $100,000
- $2,712
- National rank
- #36 highest of 51
- Set aside on $100,000
- 25.1%
- State estimated payments
- Form ES-40
- LLC filing fee
- $100
- State sales tax
- 7%
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Enter your net profit — revenue minus business expenses — to see how much to set aside and what to pay each quarter.
A 2026 planning estimate using the standard deduction, not a tax return: it ignores credits, itemized deductions, and AMT. All calculations happen in your browser. Nothing is stored.
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Indiana self-employment tax at common profit levels
2026 estimates for a single filer with no other income, using the standard deduction and no retirement or health insurance deductions. "Set aside" is the share of profit to move into a tax account; "Quarterly" is each of the four estimated payments.
| Profit | SE tax | Federal income tax | Indiana tax | Total | Set aside | Quarterly |
|---|---|---|---|---|---|---|
| $40,000 | $5,652 | $1,775 | $1,067 | $8,494 | 21.2% | $2,124 |
| $60,000 | $8,478 | $3,559 | $1,615 | $13,653 | 22.8% | $3,413 |
| $80,000 | $11,304 | $5,344 | $2,164 | $18,811 | 23.5% | $4,703 |
| $100,000 | $14,130 | $8,235 | $2,712 | $25,077 | 25.1% | $6,269 |
| $150,000 | $21,194 | $16,413 | $4,083 | $41,691 | 27.8% | $10,423 |
| $250,000 | $29,851 | $36,509 | $6,909 | $73,269 | 29.3% | $18,317 |
Married filing jointly
The same profit, earned by one spouse filing jointly with no other household income.
| Profit | SE tax | Federal income tax | Indiana tax | Total | Set aside | Quarterly |
|---|---|---|---|---|---|---|
| $40,000 | $5,652 | $398 | $1,038 | $7,087 | 17.7% | $1,772 |
| $60,000 | $8,478 | $1,885 | $1,586 | $11,949 | 19.9% | $2,987 |
| $80,000 | $11,304 | $3,550 | $2,134 | $16,988 | 21.2% | $4,247 |
| $100,000 | $14,130 | $5,335 | $2,683 | $22,147 | 22.1% | $5,537 |
| $150,000 | $21,194 | $9,795 | $4,053 | $35,043 | 23.4% | $8,761 |
| $250,000 | $29,573 | $25,154 | $6,880 | $61,608 | 24.6% | $15,402 |
How Indiana taxes self-employment income
Indiana starts from federal adjusted gross income (after the deduction for half of self-employment tax), then applies its own deductions, exemptions, and credits.
- Standard deduction: $0 (none)
- Personal exemption: $1,000 single, $2,000 joint, $1,000 head of household
- Top rate: 2.95%; your bracket on $100,000 of profit is 2.95%.
2026 Indiana income tax brackets (all filers)
| Taxable income over | Up to | Rate |
|---|---|---|
| $0 | and up | 2.95% |
Indiana vs its neighbors
The same $100,000 of 2026 profit for a single sole proprietor, run through each state's rules. Federal tax is the same everywhere, so the difference is state income tax. Against its neighbors, the same $100,000 of profit costs $1,743 more in Illinois and $2,712 less in Ohio.
| State | State income tax | Total tax | Set aside | vs Indiana |
|---|---|---|---|---|
| Indiana | $2,712 | $25,077 | 25.1% | — |
| Illinois | $4,456 | $26,820 | 26.8% | +$1,743 |
| Kentucky | $3,135 | $25,500 | 25.5% | +$423 |
| Michigan | $3,699 | $26,064 | 26.1% | +$987 |
| Ohio | $0 | $22,365 | 22.4% | −$2,712 |
How the gap changes with profit
Extra tax (+) or savings (−) for a single filer if the same business were based in each of its neighbors instead of Indiana.
| Profit | Illinois | Kentucky | Michigan | Ohio |
|---|---|---|---|---|
| $40,000 | +$628 | +$116 | +$262 | −$1,067 |
| $60,000 | +$1,000 | +$219 | +$504 | −$1,615 |
| $80,000 | +$1,372 | +$321 | +$745 | −$2,164 |
| $100,000 | +$1,743 | +$423 | +$987 | −$2,712 |
| $150,000 | +$2,673 | +$679 | +$1,591 | −$4,083 |
| $250,000 | +$4,589 | +$1,206 | +$2,837 | −$6,909 |
What's different about Indiana for the self-employed
- All 92 Indiana counties add a county income tax, from 0.5% (Porter) to 3.0% (Randolph) — for example Marion 2.02%, Allen 1.59%, Hamilton 1.1%. Enter your county's rate under "Local income tax rate".
- Dependent exemptions are not included.
- Every Indiana county levies a Local Income Tax (LIT) on residents, set by your county of residence on January 1, on top of the state rate; your estimated payments must include county tax.
- Indiana's state individual income tax rate for 2026 is 2.95%.
- Indiana LLCs file a Business Entity Report every two years in their anniversary month ($31 online, $50 by mail); failure leads to administrative dissolution.
Indiana estimated payments and deadlines
Indiana collects its own estimated income tax with Form ES-40, separately from the IRS. Required if you expect to owe $1,000 or more in combined Indiana state and county income tax for the year that is not covered by withholding.
| Installment | Indiana due date | Share of the year | Federal due date |
|---|---|---|---|
| Q1 | April 15, 2026 | 25% | April 15, 2026 |
| Q2 | June 15, 2026 | 25% | June 15, 2026 |
| Q3 | September 15, 2026 | 25% | September 15, 2026 |
| Q4 | January 15, 2027 | 25% | January 15, 2027 |
The 2026 Indiana income tax return is due April 15, 2027.
File and pay through the Indiana Department of Revenue.
LLC fees and sales tax in Indiana
- Forming an LLC: $100 state filing fee.
- Business Entity Report: $31, every two years, due in your anniversary month.
- Sales tax: 7% statewide. Use the Sales Tax Calculator to price a sale.
A single-member LLC is taxed exactly like a sole proprietorship unless it elects S or C corporation status, so the self-employment tax figures on this page apply either way.
Indiana self-employment tax FAQs
How much should I set aside for taxes if I'm self-employed in Indiana?
For a single filer with no other income, about 22.8% of profit at $60,000, 25.1% at $100,000, and 27.8% at $150,000 for 2026, covering self-employment tax, federal income tax, and Indiana income tax. Enter your own numbers in the calculator for a personal figure.
Does Indiana tax self-employment income?
Yes. Indiana taxes self-employment profit as ordinary income at 2.95% flat rate. Indiana starts from federal adjusted gross income (after the deduction for half of self-employment tax), then applies its own deductions, exemptions, and credits.
When are Indiana estimated tax payments due for 2026?
April 15, 2026, June 15, 2026, September 15, 2026, January 15, 2027, using Form ES-40. Required if you expect to owe $1,000 or more in combined Indiana state and county income tax for the year that is not covered by withholding.
How much does an LLC cost in Indiana?
The state filing fee to form an LLC is $100. Business Entity Report: $31, every two years, due in your anniversary month. A single-member LLC is still taxed like a sole proprietorship for federal purposes, so the self-employment tax figures above apply.
Sources and method
Computed with the Self-Employment Tax Calculator's 2026 engine and Indiana's rules from the sources below. Planning estimates, not a return. Last checked 2026-10-08.
- www.in.gov/dor/resources/tax-rates-and-reports/rates-fees-and-penalties/
- www.in.gov/dor/files/dn01.pdf
- payroll.org/news-resources/news/news-detail/2025/12/12/six-indiana-counties-state-have-tax-rate-changes-in-2026
- www.in.gov/dor/i-need-to/make-a-payment/estimated-payments/
- www.in.gov/dor/i-am-a/individual/tax-filing-deadlines/
- forms.in.gov/Download.aspx?id=16989
- www.in.gov/sos/business/business-entity-reports
- www.in.gov/dor/i-am-a/business-corp/county-tax-information/