Median one-bedroom rent across the cities we track is $1,253 in Arizona versus $963 in Indiana. Overall, Indiana runs roughly 23% cheaper on rent than Arizona, its main day-to-day cost driver.
Median household income across tracked cities is $77,041 in Arizona and $62,995 in Indiana — about 18% higher in Arizona. Arizona has a top state income tax rate of 2.50% and a 5.6% state sales tax; Indiana has a top state income tax rate of 2.95% and a 7% state sales tax.
State Taxes
Sales Tax
5.6%
7%
+1.4 pp in Indiana
Income Tax (top rate)
2.50%
2.95%
+0.5 pp in Indiana
Housing (median across tracked cities)
Median 1BR Rent
$1,253
$963
+23% in Arizona
Median Home Value
$364,300
$207,000
+43% in Arizona
Income (median across tracked cities)
Median Household Income
$77,041
$62,995
+18% in Arizona
Climate (median across tracked cities)
Avg Annual Temperature
75.1°F
53.2°F
+21.9°F in Arizona
Arizona vs Indiana — FAQ
- Is it cheaper to live in Arizona or Indiana?
- Indiana is cheaper on rent — its median one-bedroom of $963 runs about 23% below Arizona's $1,253, based on the cities we track in each state.
- How much more do you need to earn to live in Arizona 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 $50,000 a year in Arizona versus $39,000 in Indiana.
- Which has lower taxes, Arizona or Indiana?
- Arizona has a top state income tax rate of 2.50% and a 5.6% 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 3/1 cities we track in Arizona/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.