Median one-bedroom rent across the cities we track is $782 in Indiana versus $889 in New Mexico. Overall, Indiana runs roughly 12% cheaper on rent than New Mexico, its main day-to-day cost driver.
Median household income across tracked cities is $60,293 in Indiana and $65,604 in New Mexico — about 8% higher in New Mexico. Indiana has a top state income tax rate of 2.95% and a 7% state sales tax; New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax.
State Taxes
Sales Tax
7%
4.875%
+2.1 pp in Indiana
Income Tax (top rate)
2.95%
5.90%
+3.0 pp in New Mexico
Housing (median across tracked cities)
Median 1BR Rent
$782
$889
+14% in New Mexico
Median Home Value
$169,700
$266,700
+57% in New Mexico
Income (median across tracked cities)
Median Household Income
$60,293
$65,604
+9% in New Mexico
Climate (median across tracked cities)
Avg Annual Temperature
53.2°F
57.2°F
+4.0°F in New Mexico
Indiana vs New Mexico — FAQ
- Is it cheaper to live in Indiana or New Mexico?
- Indiana is cheaper on rent — its median one-bedroom of $782 runs about 12% below New Mexico's $889, based on the cities we track in each state.
- How much more do you need to earn to live in Indiana than in New Mexico?
- 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 $36,000 in New Mexico.
- Which has lower taxes, Indiana or New Mexico?
- Indiana has a top state income tax rate of 2.95% and a 7% state sales tax. New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax.
Housing, income, and climate are medians across the 3/3 cities we track in Indiana/New Mexico — 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.