Self-employed in Indianapolis, IN: taxes and retirement for 2026

Guides for Indianapolis

Indianapolis local rules

Local income tax

Marion County Local Income Tax (Indiana county income tax): 0.0202% for residents (effective Rate shown in Indiana DOR Departmental Notice #1, effective Oct. 1, 2026). If you lived in Marion County on Jan. 1, the 2.02% county tax is figured on Schedule CT-40 from your Indiana adjusted gross income, which starts from federal AGI and so includes net self-employment and 1099 profit. If you owe $1,000 or more in combined state and county tax not covered by withholding, you generally must make quarterly estimated payments.

Indiana business personal property tax (Marion County)

Business equipment is assessed each Jan. 1, with returns due May 15 (May 15, 2026 this year). Starting with the 2026 assessment date, a business whose total personal property acquisition cost in the county is under $2,000,000 is exempt, but must claim the exemption on Form 102 or 103 (plus Form 104) unless it already claimed it in an earlier year and still qualifies.

Also worth knowing

County is set by residence on Jan. 1. People who live outside Indiana but whose principal place of work or business is in Marion County on Jan. 1 pay Marion County's rate; Indiana residents of other counties pay their home county's rate (https://www.in.gov/dor/files/dn01.pdf). Return mechanics (federal AGI start, Schedule CT-40): https://www.in.gov/dor/i-am-a/individual/first-time-filer/your-indiana-tax-return-line-by-line. Estimated payment rule ($1,000 or more in state and county tax not covered by withholding; due April 15, June 15, Sept. 15, Jan. 15): https://www.in.gov/dor/i-need-to/make-a-payment/estimated-payments. Indiana DOR says all existing local income tax rates will expire and must be readopted during the 2027 budget process, and starting in 2028 cities and towns of 3,500+ people may impose their own local income tax of up to 1.2% (https://www.in.gov/dor/files/tax-chapter.pdf). No local gig-worker pay ordinances were found.

Indiana rules that apply in Indianapolis

State income tax (2026)

Indiana has a flat 2.95% state income tax for 2026. The state rate is scheduled to drop to 2.90% in 2027. Every county also levies a local income tax. Under Departmental Notice #1 (effective Oct. 1, 2026), county rates run from 0.5% (Porter) to 3.0% (Randolph): https://www.in.gov/dor/files/dn01.pdf

State estimated tax

Generally required if you owe $1,000 or more in combined state and county income tax for the year that withholding doesn't cover. Same dates as federal (April 15, June 15, September 15, and January 15 of the next year). Form ES-40.

Minimum wage (2026)

$7.25 an hour; tipped cash wage $2.13 an hour. Indiana's state rate matches the federal $7.25. The state minimum wage law covers employers with 2 or more employees that are not subject to the federal Fair Labor Standards Act (IC 22-2-2-3: https://iga.in.gov/ic/2026/Title_22.html). The maximum tip credit is $5.12, and tipped employees are those receiving more than $30 a month in tips.

Marketplace contractor law (IC 22-1-6-3)

App-based marketplace contractors are treated as independent contractors under all state and local law if nearly all pay is based on services or output and a written contract says they are independent contractors. The contract must also let them set their own hours, work for others without restriction, and bear their own expenses.

Workers' compensation exemption certificate (Form WCE-1)

Independent contractors who aren't required to carry workers' compensation can get an exemption certificate through Indiana DOR. The application fee is $20, and all Indiana tax returns must be filed and any delinquencies paid.

Questions

Track it in one place

Gigaverse estimates your quarterly taxes from what you actually earn, logs business trips, categorizes expenses from your bank and answers money questions with your own numbers.

Sources

• www.in.gov/dor/resources/tax-rates-and-reports/rates-fees-and-penalties/
• www.in.gov/dor/i-need-to/make-a-payment/estimated-payments/
• www.dol.gov/agencies/whd/state/minimum-wage/tipped
• iga.in.gov/ic/2025/Title_22.html
• www.in.gov/dor/i-am-a/business-corp/contractors/workers-comp/
• www.in.gov/dor/files/dn01.pdf
• www.in.gov/dlgf/assessments/personal-property

Facts researched from official sources and independently re-checked; last verified October 2026, next scheduled review 2027-01-02. Educational information for 2026, not tax, legal or investment advice. Rules change; check the official sources listed and a tax professional for your situation. Gigaverse AI, Inc. is a financial technology company, not a bank, and not itself a registered investment adviser or broker-dealer.