Cost of Living in Indianapolis, IN
Population 887,642 · Indiana
The cost of living in Indianapolis, IN is driven mostly by housing. A one-bedroom apartment rents for around $963 a month — 21% lower than the $1,223 median across the 50 large US cities we track. Studios average $933 and two-bedrooms $1,132.
Median household income here is $62,995, 17% lower than the $75,900 median of the cities we track. Adding typical electricity and heating to one-bedroom rent, a rough monthly baseline for one person is about $1,140 before food and transport. Indiana has a top state income tax rate of 2.95% and a 7% state sales tax.
Rent1BR $963
Buying a Home$207,000
Income$62,995
Household income: Census ACS, city. Metro median wage: BLS OEWS, all occupations, 2025 (metro area).
GroceriesMidwest
Average prices, Midwest (BLS, 2026-04-01). Regional where available, otherwise U.S. average.
Utilities17.9¢/kWh
Residential, state-level averages (EIA, 2026-03-01). MCF = 1,000 cubic feet.
Gas$4.35/gal
EIA weekly retail average, week of 2026-05-25.
Public Transit$1.75
Adult base one-way fare on the primary agency (2026).
State Taxes (IN)7% sales
State-level rates. Local sales taxes may add more. Income tax shown is the top marginal rate; most filers pay less.
Crime936.6 violent
FBI Crime Data Explorer, Indianapolis Police Department (2024). Offenses per 100,000 residents per year. Agency reporting practices vary, so cross-city comparisons are approximate.
People & LifestyleAge 34.1 yrs
Climate53.2°F
Indianapolis cost of living — FAQ
- Is Indianapolis expensive to live in?
- Indianapolis is among the more affordable of the 50 US cities we track. Its one-bedroom rent of $963 per month ranks #43 of 50 and is 21% lower than the $1,223 median.
- What is the average rent in Indianapolis?
- Average rent in Indianapolis, IN runs a studio around $933, a one-bedroom around $963, a two-bedroom around $1,132, a three-bedroom around $1,304 per month (US Census ACS).
- How much do you need to earn to live in Indianapolis?
- To keep a one-bedroom rent of $963 near the recommended 30% of gross income, you'd want to earn roughly $39,000 a year. The median household income here is $62,995.
- How much does it cost to live in Indianapolis per month?
- A rough monthly baseline for one person in Indianapolis is about $1,140 — one-bedroom rent plus typical residential electricity and heating. It excludes food, transport, and healthcare, so a full budget is higher.
Compare Indianapolis with nearby cities
Nearby cities
Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981-2010 (climate); EIA (gas, utilities); BLS Average Price Data (groceries) & OEWS (metro wage); transit agencies (fares); FBI Crime Data Explorer (crime); Tax Foundation 2026 (state taxes). Monthly estimate = 1BR rent + utilities; not a full cost of living.