Estimate your combined Indiana state (3.05%) and federal self-employment tax as a freelancer or 1099 contractor. Plan to set aside roughly 30-35% of net income.
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Get Matched with a CPA →Indiana has a flat state income tax rate of 3.05%, one of the lowest flat rates nationally. Additionally, most Indiana counties levy a local income tax ranging from 0.5% to 2.96%. The combined state and county rate still remains competitive compared to many other states, making Indiana relatively friendly for freelancers.
Indiana freelancers should factor in the 3.05% state income tax when planning their tax payments. This is in addition to the 15.3% federal self-employment tax and federal income tax based on your bracket.
All self-employed individuals in Indiana must make quarterly estimated tax payments to the IRS if they expect to owe $1,000 or more. Indiana may also require separate state estimated tax payments — check with a local CPA. Our calculator above gives you the exact quarterly amounts based on your income.
Based on the 3.05% state rate in Indiana, we recommend setting aside approximately 30-35% of your net self-employment income for taxes. This covers federal income tax, self-employment tax (15.3%), and Indiana state income tax.
The exact percentage varies based on your total income, filing status, and deductions. Use the calculator above for a personalized estimate, then set up automatic transfers to a dedicated tax savings account each time you receive a payment.
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