Indiana Estimated Quarterly Tax

Indiana requires estimated quarterly tax payments if you expect to owe more than $1,000 in state tax. The safe harbor is paying 90% of your current year tax liability or 100% of your prior year tax. Payments are due on the same dates as federal (April 15, June 15, September 15, January 15).

Why It Matters

Self-employed workers and freelancers in Indiana must make estimated quarterly payments for both federal and state taxes. Missing payments or underpaying can result in penalties from both the IRS and Indiana Department of Revenue. Indiana charges a 10.0% penalty rate on underpayments. Planning ahead helps you avoid surprises at tax time and manage cash flow throughout the year.

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How It Works

Indiana estimated tax is calculated on your expected state taxable income for the year. File using Form ES-40 through Indiana Department of Revenue. Payments are divided equally (25% each quarter). Due dates are 2026-04-15, 2026-06-15, 2026-09-15, and 2027-01-15. The annualized income installment method is available for taxpayers with uneven income throughout the year.

Example

Single filer • $100,000 net SE income • 2026

Quarterly

$7,003

per quarter

Federal

$25,745

25.75%

Total Annual

$28,012

28.01%

Resources

Indiana Estimated Tax Payments - Official Portal

Official Indiana estimated tax payment portal administered by Indiana Department of Revenue.

Source: Indiana Department of Revenue

Frequently Asked Questions

Does Indiana have local estimated tax requirements?

All 92 Indiana counties impose a local income tax (LIT) ranging from 0.50% to 2.90%. County tax is included in estimated payments along with state tax — there is no separate county estimated payment.

How do I pay estimated taxes in Indiana?

You can make estimated tax payments in Indiana online through Indiana Department of Revenue's payment portal, by mailing Form ES-40 with a check, or through electronic funds transfer. Online payment is the fastest and provides immediate confirmation.

What is the estimated tax threshold in Indiana?

Indiana requires estimated quarterly payments if you expect to owe more than $1,000 in state income tax after withholding and credits. This applies to self-employed individuals, freelancers, and anyone with significant non-wage income.

What is the penalty for underpaying estimated taxes in Indiana?

Indiana charges an underpayment penalty at a rate of 10.0% per year on the underpaid amount. To avoid penalties, pay at least 90% of your current year tax liability or 100% of your prior year tax (110% if AGI exceeds $150,000).

When are estimated tax payments due in Indiana?

Indiana follows the same due dates as federal estimated payments: April 15, June 15, September 15, and January 15. Payments are made using Form ES-40 through Indiana Department of Revenue.