Is it cheaper to live in Billings or Indianapolis?

Billings, MT is cheaper. Its monthly baseline of $1,030 (1BR rent + utilities) runs about 10% below Indianapolis, IN's $1,150, mainly because of rent.

How much more do you need to earn to live in Billings than in Indianapolis?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Billings versus $39,000 in Indianapolis.

Which has lower taxes, Billings or Indianapolis?

Billings is taxed under Montana's rules (a top state income tax rate of 5.65% and no state sales tax); Indianapolis under Indiana's (a top state income tax rate of 2.95% and a 7% state sales tax).

Billings vs Indianapolis Cost of Living 2026

Billings

Montana

$1,030/mo est.

Indianapolis

Indiana

$1,150/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,030 in Billings, MT versus $1,150 in Indianapolis, IN. Overall, Billings, MT is roughly 10% cheaper to live in day-to-day than Indianapolis, IN, driven mainly by rent.

Median household income is $71,855 in Billings, MT and $62,995 in Indianapolis, IN — about 12% higher in Billings, MT. Montana has a top state income tax rate of 5.65% and no state sales tax; Indiana has a top state income tax rate of 2.95% and a 7% state sales tax.

Billings, MT

Indianapolis, IN

Rent

Studio

$877

$933

+6% in Indianapolis, IN

1 Bedroom

$889

$963

+8% in Indianapolis, IN

2 Bedroom

$1,102

$1,132

+3% in Indianapolis, IN

3 Bedroom

$1,398

$1,304

+7% in Billings, MT

Buying a Home

Median Home Value

$311,800

$207,000

+34% in Billings, MT

Income

Median Household Income

$71,855

$62,995

+12% in Billings, MT

Metro Median Wage (annual)

$49,060

$49,340

+1% in Indianapolis, IN

People & Lifestyle

Median Age

38.1 yr

34.1 yr

+4.0 yr in Billings, MT

Homeownership

64.8%

55.3%

+9.5 pp in Billings, MT

Bachelor's+ (25+)

37.0%

34.2%

+2.8 pp in Billings, MT

Avg Commute

16.7 min

24.3 min

+7.6 min in Indianapolis, IN

Crime (per 100k/yr)

Violent Crime

750.2

936.6

+25% in Indianapolis, IN

Property Crime

3,123.5

3,351.7

+7% in Indianapolis, IN

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

48.2°F

53.2°F

+5.0°F in Indianapolis, IN

Annual Precipitation

13.7 in

42.4 in

+28.8 in in Indianapolis, IN

Gas

Regular Gasoline

$4.29/gal

$3.94/gal

+8% in Billings, MT

Area: Rocky Mountain (PADD 4) vs Midwest (PADD 2).

Public Transit

Base Fare (one-way)

—

$1.75

Adult base one-way fare — — vs IndyGo (2026).

Utilities

Electricity (¢/kWh)

14.7

18.1

+24% in Indianapolis, IN

Natural Gas ($/MCF)

$8.77

$13.70

+56% in Indianapolis, IN

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.82

$4.31

+10% in Billings, MT

Bread (lb)

$2.04

$1.66

+19% in Billings, MT

Eggs (doz)

$2.19

$3.63

+66% in Indianapolis, IN

Ground Beef (lb)

$7.36

$6.77

+8% in Billings, MT

Chicken (lb)

$2.01

$2.10

+4% in Indianapolis, IN

Bananas (lb)

$0.70

$0.62

+12% in Billings, MT

Average prices — West vs Midwest (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (MT / IN)

None

+7.0 pp in IN

Income Tax (top rate)

5.65%

2.95%

+2.7 pp in MT

Billings vs Indianapolis — FAQ

Is it cheaper to live in Billings or Indianapolis?: Billings, MT is cheaper. Its monthly baseline of $1,030 (1BR rent + utilities) runs about 10% below Indianapolis, IN's $1,150, mainly because of rent.
How much more do you need to earn to live in Billings than in Indianapolis?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Billings versus $39,000 in Indianapolis.
Which has lower taxes, Billings or Indianapolis?: Billings is taxed under Montana's rules (a top state income tax rate of 5.65% and no state sales tax); Indianapolis under Indiana's (a top state income tax rate of 2.95% and a 7% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).