Indiana Side Hustle Tax Calculator
Calculate your Indiana state tax (3%), federal tax, and self-employment tax on 1099 income.
Last updated: January 2026 · Data from IRS Rev Proc 2024-40
Indiana side hustlers benefit from one of the nation's lowest flat state income tax rates at just 3.0% for 2025. However, nearly all 92 counties levy additional local income taxes ranging from 0.5% to 2.9%. You'll need to account for both state and county taxes on your self-employment income.
How Side Hustle Taxes Work in Indiana
Indiana uses a flat state income tax combined with mandatory county income taxes:
**Indiana state tax:** - Flat rate: 3.0% on all adjusted gross income
**County income taxes (in addition to state):** - Marion County (Indianapolis): 2.02% - Lake County (Gary area): 1.5% - Allen County (Fort Wayne): 1.48% - Hamilton County (Carmel): 1.0%
**Combined rates:** - Indianapolis residents: 5.02% (3.0% + 2.02%) - Fort Wayne residents: 4.48% (3.0% + 1.48%)
What Indiana Side Hustlers Owe
Let's say you're a single filer in Indianapolis with a $50,000 W-2 job and $12,000 in side hustle income from freelance design, with $1,500 in business expenses.
**Your estimated taxes on the side hustle:** - Net self-employment income: $10,500 - Federal SE tax (15.3% of 92.35%): ~$1,485 - Federal income tax on side income: ~$2,310 (22% bracket) - Indiana state tax (3.0%): ~$320 - Marion County tax (2.02%): ~$212 - **Total additional tax: ~$4,327**
Indiana Tax Deadlines 2025
Indiana estimated tax deadlines align with federal: - **Q1**: April 15, 2025 - **Q2**: June 16, 2025 - **Q3**: September 15, 2025 - **Q4**: January 15, 2026
Use Form ES-40 for Indiana estimated tax payments. County taxes are paid with state taxes.
Common Deductions for Indiana Freelancers
Indiana deductions for side hustlers: - Indiana starts with federal adjusted gross income - All Schedule C business deductions reduce your Indiana taxable income - Home office expenses - Business mileage (67 cents/mile for 2025)
Indiana Side Hustle Tax FAQ
Does Indiana have county income taxes?
Yes, Indiana has both a 3.0% state income tax AND county income taxes ranging from 0.5% to 2.9%. Indianapolis (Marion County) adds 2.02% for a combined rate of 5.02%.
How do I find my Indiana county tax rate?
Visit the Indiana Department of Revenue website. Your rate is based on your county of residence on January 1st of the tax year.
Do I file county taxes separately?
No, Indiana county taxes are calculated and paid with your state return using Form IT-40.
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