Median one-bedroom rent across the cities we track is $963 in Indiana versus $1,170 in Texas. Overall, Indiana runs roughly 18% cheaper on rent than Texas, its main day-to-day cost driver.
Median household income across tracked cities is $62,995 in Indiana and $67,043 in Texas — about 6% higher in Texas. Indiana has a top state income tax rate of 2.95% and a 7% state sales tax; Texas has no state income tax and a 6.25% state sales tax.
State Taxes
Sales Tax
7%
6.25%
+0.8 pp in Indiana
Income Tax (top rate)
2.95%
None
+3.0 pp in Indiana
Housing (median across tracked cities)
Median 1BR Rent
$963
$1,170
+21% in Texas
Median Home Value
$207,000
$264,900
+28% in Texas
Income (median across tracked cities)
Median Household Income
$62,995
$67,043
+6% in Texas
Climate (median across tracked cities)
Avg Annual Temperature
53.2°F
67.2°F
+14.0°F in Texas
Indiana vs Texas — FAQ
- Is it cheaper to live in Indiana or Texas?
- Indiana is cheaper on rent — its median one-bedroom of $963 runs about 18% below Texas's $1,170, based on the cities we track in each state.
- How much more do you need to earn to live in Indiana than in Texas?
- 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 $47,000 in Texas.
- Which has lower taxes, Indiana or Texas?
- Indiana has a top state income tax rate of 2.95% and a 7% state sales tax. Texas has no state income tax and a 6.25% state sales tax.
Housing, income, and climate are medians across the 1/8 cities we track in Indiana/Texas — 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.