Living Cost Compare
Indianapolis

Indiana

$1,140/mo est.

vs
Louisville

Kentucky

$1,040/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,140 in Indianapolis, IN versus $1,040 in Louisville, KY. Overall, Louisville, KY is roughly 9% cheaper to live in day-to-day than Indianapolis, IN, driven mainly by rent.

Median household income is $62,995 in Indianapolis, IN and $64,731 in Louisville, KY — about 3% higher in Louisville, KY. Indiana has a top state income tax rate of 2.95% and a 7% state sales tax; Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax.

Indianapolis, IN
Louisville, KY

Rent

Studio
$933
$786
+16% in Indianapolis, IN
1 Bedroom
$963
$877
+9% in Indianapolis, IN
2 Bedroom
$1,132
$1,096
+3% in Indianapolis, IN
3 Bedroom
$1,304
$1,299
+0% in Indianapolis, IN

Buying a Home

Median Home Value
$207,000
$221,500
+7% in Louisville, KY

Income

Median Household Income
$62,995
$64,731
+3% in Louisville, KY
Metro Median Wage (annual)
$49,340
$48,370
+2% in Indianapolis, IN

People & Lifestyle

Median Age
34.1 yr
37.7 yr
+3.6 yr in Louisville, KY
Homeownership
55.3%
60.6%
+5.3 pp in Louisville, KY
Bachelor's+ (25+)
34.2%
33.4%
+0.8 pp in Indianapolis, IN
Avg Commute
24.3 min
22.7 min
+1.6 min in Indianapolis, IN

Crime (per 100k/yr)

Violent Crime
936.6
761.5
+19% in Indianapolis, IN
Property Crime
3,351.7
3,535.4
+5% in Louisville, KY

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

Climate

Avg Annual Temperature
53.2°F
58.2°F
+5.0°F in Louisville, KY
Annual Precipitation
42.4 in
44.9 in
+2.5 in in Louisville, KY

Gas

Regular Gasoline
$4.35/gal
$4.35/gal
about equal

Area: Midwest (PADD 2) vs Midwest (PADD 2).

Public Transit

Base Fare (one-way)
$1.75
$1.75
about equal

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

Utilities

Electricity (¢/kWh)
17.9
14.9
+17% in Indianapolis, IN
Natural Gas ($/MCF)
$12.49
$19.12
+53% in Louisville, KY

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

Groceries

Milk (gal)
$4.14
$4.16
+1% in Louisville, KY
Bread (lb)
$1.79
$1.73
+3% in Indianapolis, IN
Eggs (doz)
$3.63
$2.19
+40% in Indianapolis, IN
Ground Beef (lb)
$6.97
$6.56
+6% in Indianapolis, IN
Chicken (lb)
$2.15
$1.90
+12% in Indianapolis, IN
Bananas (lb)
$0.63
$0.61
+3% in Indianapolis, IN

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

State Taxes

Sales Tax (IN / KY)
7%
6%
+1.0 pp in IN
Income Tax (top rate)
2.95%
3.50%
+0.5 pp in KY

Indianapolis vs Louisville — FAQ

Is it cheaper to live in Indianapolis or Louisville?
Louisville, KY is cheaper. Its monthly baseline of $1,040 (1BR rent + utilities) runs about 9% below Indianapolis, IN's $1,140, mainly because of rent.
How much more do you need to earn to live in Indianapolis than in Louisville?
To keep rent near the recommended 30% of gross income, you'd want to earn roughly $39,000 a year in Indianapolis versus $35,000 in Louisville.
Which has lower taxes, Indianapolis or Louisville?
Indianapolis is taxed under Indiana's rules (a top state income tax rate of 2.95% and a 7% state sales tax); Louisville under Kentucky's (a top state income tax rate of 3.50% and a 6% 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).