2026 tax year · Indiana
Services and task work taxes in Indiana
TaskRabbit, Rover, Upwork and the rest report your gross and withhold nothing. The gap between that and what you are actually taxed on is mileage, in Indiana that gap is worth $2,195 in tax.
Take a driver who grossed $34,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the services and task work page $9,030 comes off and $24,970 is left as taxable profit. That profit is what Indiana and the IRS charge against.
What that leaves you owing in Indiana
Indiana taxes income at a flat 2.95% for 2026, applied on top of federal income tax and self-employment tax.
| Self-employment tax | $3,528 |
| Federal income tax | $568 |
| Indiana income tax | $685 |
| Total tax | $4,781 |
| Effective rate on gross | 14.1% |
Earning more in Indiana
A single filer taking the standard deduction, standard mileage method, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:
| Volume | Gross | Mileage off | Taxable profit | Indiana tax | Total tax | Rate on gross |
|---|---|---|---|---|---|---|
| Part-time | $11,000 | $1,485 | $9,515 | $261 | $1,605 | 14.6% |
| Steady side income | $34,000 | $4,455 | $29,545 | $810 | $5,893 | 17.3% |
| Full-time | $55,000 | $7,425 | $47,575 | $1,304 | $10,477 | 19.0% |
Switching state opens that state's page.
Enter your numbers and press Calculate to see your 2026 estimate.
Indiana specifics that change the number
On the 2026 rate itself: rate has been decreasing. Some counties add local income tax.
Indiana also has local income tax that the estimate above does not model, all 92 counties levy local income tax (0.50% to 2.90%).. Add it separately for where you live and work.
Working across an Indiana line
Services income is sourced to where the work was physically done. A job over the line can create a filing obligation in that state even for a single afternoon, and reciprocity agreements do not help, they cover wages paid by an employer, not self-employment income.
On $24,970 of profit, what the states around Indiana would charge:
| State | Its tax | vs Indiana |
|---|---|---|
| Ohio | $0 | −$737 |
| Kentucky | $874 | +$137 |
| Michigan | $1,061 | +$325 |
| Illinois | $1,236 | +$499 |
- Ohio would take $737 less, $0 against Indiana's $737.
- Kentucky would take $137 more, $874 against Indiana's $737.
- Michigan would take $325 more, $1,061 against Indiana's $737.
- Illinois would take $499 more, $1,236 against Indiana's $737.
Services and task work tax questions in Indiana
How much should an Indiana contractor set aside?
About 14.1% of gross on the $34,000 example, $4,781 across self-employment tax, federal income tax and $685 to Indiana. Set aside from each payout rather than finding it in April.
Does the $34,000 on my 1099-NEC match what Indiana taxes?
No. Indiana taxes profit, not gross. After $9,030 of deductions the taxable figure is $24,970, so the Indiana bill is $685 rather than what gross alone would suggest.