Median one-bedroom rent across the cities we track is $782 in Indiana versus $752 in Michigan. Overall, Michigan runs roughly 4% cheaper on rent than Indiana, its main day-to-day cost driver.
Median household income across tracked cities is $60,293 in Indiana and $39,575 in Michigan — about 34% higher in Indiana. Indiana has a top state income tax rate of 2.95% and a 7% state sales tax; Michigan has a top state income tax rate of 4.25% and a 6% state sales tax.
State Taxes
Sales Tax
7%
6%
+1.0 pp in Indiana
Income Tax (top rate)
2.95%
4.25%
+1.3 pp in Michigan
Housing (median across tracked cities)
Median 1BR Rent
$782
$752
+4% in Indiana
Median Home Value
$169,700
$76,800
+55% in Indiana
Income (median across tracked cities)
Median Household Income
$60,293
$39,575
+34% in Indiana
Climate (median across tracked cities)
Avg Annual Temperature
53.2°F
50.3°F
+2.9°F in Indiana
Indiana vs Michigan — FAQ
- Is it cheaper to live in Indiana or Michigan?
- Michigan is cheaper on rent — its median one-bedroom of $752 runs about 4% below Indiana's $782, based on the cities we track in each state.
- How much more do you need to earn to live in Indiana than in Michigan?
- 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 Indiana versus $30,000 in Michigan.
- Which has lower taxes, Indiana or Michigan?
- Indiana has a top state income tax rate of 2.95% and a 7% state sales tax. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax.
Housing, income, and climate are medians across the 3/1 cities we track in Indiana/Michigan — 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.