Median one-bedroom rent across the cities we track is $963 in Indiana versus $1,142 in Tennessee. Overall, Indiana runs roughly 16% cheaper on rent than Tennessee, its main day-to-day cost driver.
Median household income across tracked cities is $62,995 in Indiana and $63,204 in Tennessee. Indiana has a top state income tax rate of 2.95% and a 7% state sales tax; Tennessee has no state income tax and a 7% state sales tax.
State Taxes
Sales Tax
7%
7%
about equal
Income Tax (top rate)
2.95%
None
+3.0 pp in Indiana
Housing (median across tracked cities)
Median 1BR Rent
$963
$1,142
+19% in Tennessee
Median Home Value
$207,000
$270,100
+30% in Tennessee
Income (median across tracked cities)
Median Household Income
$62,995
$63,204
+0% in Tennessee
Climate (median across tracked cities)
Avg Annual Temperature
53.2°F
61.3°F
+8.0°F in Tennessee
Indiana vs Tennessee — FAQ
- Is it cheaper to live in Indiana or Tennessee?
- Indiana is cheaper on rent — its median one-bedroom of $963 runs about 16% below Tennessee's $1,142, based on the cities we track in each state.
- How much more do you need to earn to live in Indiana than in Tennessee?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $39,000 a year in Indiana versus $46,000 in Tennessee.
- Which has lower taxes, Indiana or Tennessee?
- Indiana has a top state income tax rate of 2.95% and a 7% state sales tax. Tennessee has no state income tax and a 7% state sales tax.
Housing, income, and climate are medians across the 1/2 cities we track in Indiana/Tennessee — 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.