How to Pay Estimated Taxes in Indiana: Deadlines, Methods, and Penalties

If you expect to owe at least $1,000 in combined Indiana state and county income tax after withholding and credits, you need to pay estimated taxes in Indiana on a quarterly schedule.¹ The Department of Revenue (DOR) accepts these payments online through its INTIME portal or by mail using Form ES-40, and the four 2026 deadlines are April 15, June 15, September 15, and January 15, 2027.

Who Owes Indiana Estimated Payments

The $1,000 threshold applies to your expected total state and county tax minus withholding and credits.¹ If a W-2 employer withholds enough Indiana tax to cover your bill, estimated payments generally aren’t required. The obligation kicks in when income arrives without withholding attached.

Common triggers include self-employment and freelance income, gig work, rental profits, significant investment gains, and pension or retirement distributions without adequate withholding. A mixed situation, where you have W-2 wages plus side income, only requires estimated payments if the gap between what’s withheld and what you’ll owe exceeds $1,000.

Self-employed taxpayers should keep in mind that federal estimated taxes are a separate obligation with a separate calculation, even though the federal quarterly due dates match Indiana’s.

Indiana Tax Rates for 2026

Indiana taxes adjusted gross income at a flat 2.95% for 2026, with a scheduled drop to 2.90% in 2027.² Every county also imposes its own local income tax, based on your county of residence as of January 1. Rates vary by county and are published on the DOR’s rates page. Your estimated tax calculation has to cover both parts together, because the $1,000 threshold looks at the combined total.¹

How Much to Pay Each Quarter

Indiana follows federal timing and calculation rules under Section 6654 of the Internal Revenue Code, which gives you two main ways to size each installment.¹ Form ES-40 includes a worksheet that walks through the arithmetic.³

Current-Year Method

Project your 2026 adjusted gross income, apply the 2.95% state rate plus your county rate, subtract withholding and credits, and divide the balance into four equal payments. This is clean when your income is predictable. Undershoot the projection and you may face a penalty on the periods that came in light.

Safe Harbor Method

The safer route is to pay at least 100% of your prior year’s total Indiana tax (state and county combined) across the four installments. If your 2025 federal adjusted gross income exceeded $150,000, or $75,000 married filing separately, the threshold rises to 110% of last year’s tax.⁴ Meeting this benchmark blocks the underpayment penalty no matter how much you actually earn in 2026. You’ll still owe any additional tax at filing, but no penalty attaches.

Annualized Income Installment Method

If your income is heavily concentrated in certain months, as with seasonal businesses or one-time payouts, you can size each installment to what you actually earned that period rather than paying four equal amounts. Schedule IT-2210A handles the calculation, requiring you to figure cumulative Indiana adjusted gross income at set intervals and compute the tax for each period separately.⁵ A fireworks retailer whose sales cluster in June and July, for example, would pay a small first installment and a larger one in September.

Quarterly Deadlines

Indiana uses the same schedule as the IRS. The 2026 due dates are:⁶

April 15, 2026, for income earned January through March
June 15, 2026, for income earned April through May
September 15, 2026, for income earned June through August
January 15, 2027, for income earned September through December

When a deadline lands on a weekend or holiday, it moves to the next business day. The second and third periods cover different lengths of time, so equal payments don’t correspond to equal earning windows.

You can skip the January 15 installment if you file your annual Indiana return and pay the full balance by February 1. If you can pull your documents together that early, it’s a legitimate shortcut.

Farmers and Fishermen

If at least two-thirds of your gross income comes from farming or fishing, you have a simpler option: make a single estimated payment by January 15, or skip estimated payments entirely by filing your annual return and paying in full by March 1.⁷ The April, June, and September dates don’t apply.

How to Submit the Payment

Online Through INTIME

INTIME, the DOR’s online portal at intime.dor.in.gov, handles estimated payments with or without an account.⁸ Choose “Estimated Payment” and specify the correct tax year so the DOR credits it properly. Bank payments (e-checks) carry no fee; credit and debit card payments incur a convenience fee from the processor.⁴ INTIME also lets you schedule payments ahead of a deadline.⁹

By Mail

Complete Form ES-40, available on the DOR’s forms page, and mail it with a check or money order payable to the Indiana Department of Revenue.³ Write your Social Security number and the tax year on the check. Send it to the address on the voucher. A postmark by the deadline counts as timely.

Through Tax Software

Most tax preparation software can generate vouchers and submit electronic estimated payments directly to the DOR. If you already file your annual return through software, check whether it offers scheduled estimated payments.

Keeping Records

Save INTIME confirmation numbers and canceled checks. You’ll need them to claim credit for estimated payments on your annual return. The IRS recommends keeping tax records for at least three years from the filing date or two years from the payment date, whichever is later.¹⁰ Three years past filing is the practical minimum for Indiana purposes too.

Underpayment Penalties

Indiana charges a 10% penalty on the underpaid amount for each installment period you fell short.² The penalty runs per period, so underpaying every quarter produces four separate penalty calculations. Getting a refund at filing doesn’t erase this; what matters is whether each installment was big enough when it was due.

You avoid the penalty completely if your withholding plus estimated payments equal at least the lesser of:

90% of your 2026 tax liability, or
100% of your 2025 tax liability, or 110% if your 2025 federal AGI exceeded $150,000 ($75,000 married filing separately)⁴

Meeting either threshold stops the penalty. The 100%-of-last-year path is the safe harbor, and it’s the more forgiving choice because it doesn’t require accurate income prediction.

If a penalty does apply, calculate it on Schedule IT-2210 with your annual return. If your income was genuinely uneven across the year, Schedule IT-2210A can reduce or eliminate the penalty for the low-income periods.⁵

Requesting a Waiver

Indiana law allows the DOR to waive penalties if you show reasonable cause and that the underpayment wasn’t due to willful neglect. The request must be in writing, made under penalty of perjury, and submitted within the timeframe for protesting a departmental assessment.¹¹ Waivers do get granted, but documenting the circumstances matters more than describing them.

1
Indiana General Assembly. Indiana Code 6-3-4-4.1-b – Estimated Payments by Individual
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Indiana Department of Revenue. DOR: Rates Fees and Penalties
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Indiana Department of Revenue. Current Year Individual Tax Forms
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Indiana Department of Revenue. Estimated Payments
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Indiana Department of Revenue. Schedule IT-2210A Annualized Income Schedule for the Underpayment of Estimated Tax by Individuals
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Internal Revenue Service. When Are Quarterly Estimated Tax Payments Due
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Internal Revenue Service. Farmers and Fishermen
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Indiana Department of Revenue. DOR: INTIME
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Indiana Department of Revenue. INTIME Guide to Making a Tax Return Payment
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Internal Revenue Service. How Long Should I Keep Records
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Indiana General Assembly. Indiana Code 6-8.1-10-2.1 – Liability for Penalty; Reasonable Cause