TaxWrenTaxes for Indiana freelancers in 2026
Single filers get a personal exemption of $1,000.
On $85,000 of 1099 profit, a single filer owes about $2,301 in Indiana income tax on top of $17,800 in federal taxes. That ranks 14th lowest of 51 (50 states and DC), $428 less than the median state.
Among its neighbors, Ohio would tax the same income less, while Kentucky, Michigan and Illinois would tax it more.
Indiana also has local (county or city) income taxes. They average 0.35% of adjusted gross income statewide (2023 IRS and Census data compiled by the Tax Foundation) and are not included in these estimates.
Indiana income tax brackets for 2026
| Rate | Single: taxable income over | Married jointly: over |
|---|---|---|
| 2.95% | $0 | $0 |
Indiana vs. neighboring states
Tax on $85,000 of 1099 profit for a single filer in 2026. The median across all 50 states and DC is $2,729 of state income tax.
| State | State tax | Total tax | Take-home |
|---|---|---|---|
| Indiana | $2,301 | $20,101 | $64,899 |
| Illinois | $3,765 | $21,565 | $63,435 |
| Kentucky | $2,647 | $20,447 | $64,553 |
| Michigan | $3,107 | $20,907 | $64,093 |
| Ohio | $1,729 | $19,529 | $65,471 |
How Indiana taxes changed
For 2026, Indiana cut its top rate from 3% to 2.95%. State tax on $85,000 of 1099 profit falls from $2,340 to $2,301 (−$39).
| 2025 | 2026 | |
|---|---|---|
| Top income tax rate | 3% | 2.95% |
| Standard deduction (single) | — | — |
| State tax on $85,000 of 1099 profit | $2,340 | $2,301 |
| Take-home on a $75,000 salary | $59,094 | $59,410 |
Each year uses that year's federal and Indiana rules, so the take-home row also reflects federal changes. Federal changes · All data updates
What this estimate simplifies
- $1,000 is a base exemption. If dependents meet certain conditions, filers can take an additional $1,500 exemption for each. If a taxpayer is claiming a child as a dependent for the first taxable year in which the exemption is allowed, the taxpayer is now permitted to claim an amount of $3,000, instead of $1,500.
Sources: Indiana revenue department, Tax Foundation, State Individual Income Tax Rates and Brackets, IRS Rev. Proc. 2025-32. See our methodology.
Indiana 1099 tax FAQ
Does Indiana have a state income tax?
Indiana has a flat income tax of 2.95%.
How much should a freelancer in Indiana set aside for taxes?
A single filer with $85,000 of 1099 profit and no other income should set aside about 24% of every payment in 2026: $12,010 self-employment tax, $5,790 federal income tax and $2,301 Indiana income tax. Use the calculator for your own income, expenses and filing status.
What is the top Indiana income tax rate in 2026?
2.95%. Indiana has a flat income tax of 2.95%.
Do I need to make estimated tax payments to Indiana?
Generally yes, if you expect to owe state tax that is not covered by withholding. Indiana sets its own thresholds and due dates; check the Indiana revenue department's estimated payment rules.