1099 Quarterly Taxes in Indiana (2025-2026)
If you're self-employed in Indiana — freelancer, contractor, gig worker, or single-member LLC — you owe quarterly estimated taxes to two agencies: the IRS (federal) and Indiana Department of Revenue (state). Indiana uses a flat 3.05% income tax, which makes estimating your state burden simpler than progressive states. But you still need to send the money on time to avoid underpayment penalties.
Indiana state income tax (2025)
Indiana uses a flat income tax rate of 3.05% on all taxable income above the standard deduction. There are no brackets — every dollar of taxable income is taxed at the same rate.
How to pay Indiana estimated taxes
Federal estimated tax due dates (April 15, June 16, September 15, 2026, and January 15, 2027) apply to your Indiana state estimated payments as well — most states piggyback on the federal schedule. Pay Indiana taxes through the Indiana Department of Revenue's online portal: intime.dor.in.gov. You can also mail Form ES-40 with a check.
Indiana-specific quirk freelancers miss
Indiana imposes a state flat rate of 3.05% PLUS county-level income taxes that vary from about 0.5% to 3.0%. Your county of residence determines the surcharge — Marion County (Indianapolis) is around 2.02%.
Common deductions for Indiana freelancers
- Indiana allows the same business expenses (home office, mileage, software, etc.) as federal.
- Half of SE tax is deductible federally; check Indiana's rules for state conformity.
- IN conforms to federal QBI starting from federal AGI.
- SEP-IRA / Solo 401(k) contributions reduce both federal and Indiana taxable income.
- Self-employed health insurance premiums are deductible federally.