Median one-bedroom rent across the cities we track is $870 in Iowa versus $782 in Indiana. Overall, Indiana runs roughly 10% cheaper on rent than Iowa, its main day-to-day cost driver.
Median household income across tracked cities is $63,966 in Iowa and $60,293 in Indiana — about 6% 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
$870
$782
+10% in Iowa
Median Home Value
$183,700
$169,700
+8% in Iowa
Income (median across tracked cities)
Median Household Income
$63,966
$60,293
+6% in Iowa
Climate (median across tracked cities)
Avg Annual Temperature
50.9°F
53.2°F
+2.3°F in Indiana
Iowa vs Indiana — FAQ
- Is it cheaper to live in Iowa or Indiana?
- Indiana is cheaper on rent — its median one-bedroom of $782 runs about 10% below Iowa's $870, 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 $35,000 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 1/3 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.