Median one-bedroom rent across the cities we track is $777 in Iowa versus $782 in Indiana. Overall, Iowa runs roughly 1% cheaper on rent than Indiana, its main day-to-day cost driver.
Median household income across tracked cities is $64,497 in Iowa and $60,293 in Indiana — about 7% higher in Iowa. Iowa has a top state income tax rate of 3.80% and a 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
6%
7%
+1.0 pp in Indiana
Income Tax (top rate)
3.80%
2.95%
+0.8 pp in Iowa
Housing (median across tracked cities)
Median 1BR Rent
$777
$782
+1% in Indiana
Median Home Value
$177,100
$169,700
+4% in Iowa
Income (median across tracked cities)
Median Household Income
$64,497
$60,293
+7% in Iowa
Climate (median across tracked cities)
Avg Annual Temperature
49.3°F
53.2°F
+3.9°F in Indiana
Iowa vs Indiana — FAQ
- Is it cheaper to live in Iowa or Indiana?
- Iowa is cheaper on rent — its median one-bedroom of $777 runs about 1% below Indiana's $782, based on the cities we track in each state.
- How much more do you need to earn to live in Iowa 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 $31,000 a year in Iowa versus $31,000 in Indiana.
- Which has lower taxes, Iowa or Indiana?
- Iowa has a top state income tax rate of 3.80% and a 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 3/3 cities we track in Iowa/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.