Self-Employment Tax for Indiana (2026)
Indiana (IN) Key Facts
Federal S E Tax Rate
15.3%
State Income Tax Rate
3.05%
Combined S E + State Rate
18.4%
S E Tax Components
12.4% Social Security + 2.9% Medicare
How This Calculator Works in Indiana
This calculator estimates your total self-employment tax in Indiana, including the federal 15.3% SE tax and Indiana's state income tax. Enter your net SE income to see your liability.
Indiana Overview
Self-employed workers in Indiana pay the federal 15.3% SE tax plus state income tax at flat 3.05%, for a combined burden of approximately 18.4%. Indiana county income taxes (ranging 0.5%-2.9%) apply on top of the flat 3.05% state rate.
How Indiana Compares
Indiana's combined SE burden of 18.4% compares to Illinois at 20.3% and Ohio at 18.8%. State income tax creates meaningful differences between states.
| State | Top Rate | Notes |
|---|---|---|
| Illinois | 4.95% | Illinois has a state income tax on SE income rate of 4.95%. |
| Ohio | 3.5% | Ohio has a state income tax on SE income rate of 3.5%. |
| Michigan | 4.25% | Michigan has a state income tax on SE income rate of 4.25%. |
Indiana's state income tax on SE income rate of 3.05% compares to a national average of approximately 5.04%. This is below the national average.
Tips for Indiana Residents
- 1Federal self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare) regardless of state.
- 2Indiana adds state income tax at flat 3.05% on self-employment income, for a combined rate of about 18.4%.
- 3Indiana county income taxes (ranging 0.5%-2.9%) apply on top of the flat 3.05% state rate.
- 4Deduct half of your SE tax on your federal return and track all business expenses to minimize net self-employment income.
- 5Consider whether an S-Corp election could reduce your SE tax burden if your net income exceeds $50,000-$60,000.