Median one-bedroom rent across the cities we track is $1,004 in Alabama versus $782 in Indiana. Overall, Indiana runs roughly 22% cheaper on rent than Alabama, its main day-to-day cost driver.
Median household income across tracked cities is $44,376 in Alabama and $60,293 in Indiana — about 26% higher in Indiana. Alabama has a top state income tax rate of 5.00% and a 4% state sales tax; Indiana has a top state income tax rate of 2.95% and a 7% state sales tax.
State Taxes
Sales Tax
4%
7%
+3.0 pp in Indiana
Income Tax (top rate)
5.00%
2.95%
+2.0 pp in Alabama
Housing (median across tracked cities)
Median 1BR Rent
$1,004
$782
+22% in Alabama
Median Home Value
$138,600
$169,700
+22% in Indiana
Income (median across tracked cities)
Median Household Income
$44,376
$60,293
+36% in Indiana
Climate (median across tracked cities)
Avg Annual Temperature
63.3°F
53.2°F
+10.1°F in Alabama
Alabama vs Indiana — FAQ
- Is it cheaper to live in Alabama or Indiana?
- Indiana is cheaper on rent — its median one-bedroom of $782 runs about 22% below Alabama's $1,004, based on the cities we track in each state.
- How much more do you need to earn to live in Alabama than in Indiana?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $40,000 a year in Alabama versus $31,000 in Indiana.
- Which has lower taxes, Alabama or Indiana?
- Alabama has a top state income tax rate of 5.00% and a 4% state sales tax. Indiana has a top state income tax rate of 2.95% and a 7% state sales tax.
Housing, income, and climate are medians across the 1/3 cities we track in Alabama/Indiana — not population-weighted statewide figures. Taxes are exact state-level rates. Sources: US Census Bureau, ACS 5-Year; NOAA Climate Normals 1981–2010; Tax Foundation 2026.