Is it cheaper to live in Indianapolis or Nashville?

Indianapolis, IN is cheaper. Its monthly baseline of $1,150 (1BR rent + utilities) runs about 23% below Nashville, TN's $1,490, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $39,000 a year in Indianapolis versus $53,000 in Nashville.

Which has lower taxes, Indianapolis or Nashville?

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

Indianapolis vs Nashville Cost of Living 2026

Indianapolis

Indiana

$1,150/mo est.

Nashville

Tennessee

$1,490/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,150 in Indianapolis, IN versus $1,490 in Nashville, TN. Overall, Indianapolis, IN is roughly 23% cheaper to live in day-to-day than Nashville, TN, driven mainly by rent.

Median household income is $62,995 in Indianapolis, IN and $75,197 in Nashville, TN — about 16% higher in Nashville, TN. 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.

Indianapolis, IN

Nashville, TN

Rent

Studio

$933

$1,341

+44% in Nashville, TN

1 Bedroom

$963

$1,336

+39% in Nashville, TN

2 Bedroom

$1,132

$1,478

+31% in Nashville, TN

3 Bedroom

$1,304

$1,832

+40% in Nashville, TN

Buying a Home

Median Home Value

$207,000

$383,100

+85% in Nashville, TN

Income

Median Household Income

$62,995

$75,197

+19% in Nashville, TN

Metro Median Wage (annual)

$49,340

$50,390

+2% in Nashville, TN

People & Lifestyle

Median Age

34.1 yr

34.4 yr

+0.3 yr in Nashville, TN

Homeownership

55.3%

53.0%

+2.3 pp in Indianapolis, IN

Bachelor's+ (25+)

34.2%

46.9%

+12.7 pp in Nashville, TN

Avg Commute

24.3 min

24.9 min

+0.6 min in Nashville, TN

Crime (per 100k/yr)

Violent Crime

936.6

1,178.7

+26% in Nashville, TN

Property Crime

3,351.7

4,558.5

+36% in Nashville, TN

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

59.4°F

+6.2°F in Nashville, TN

Annual Precipitation

42.4 in

47.3 in

+4.8 in in Nashville, TN

Gas

Regular Gasoline

$3.94/gal

about equal

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

Public Transit

Base Fare (one-way)

$1.75

$2.00

+14% in Nashville, TN

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

Utilities

Electricity (¢/kWh)

18.1

14.5

+20% in Indianapolis, IN

Natural Gas ($/MCF)

$13.70

$16.83

+23% in Nashville, TN

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

Groceries

Milk (gal)

$4.31

$4.00

+7% in Indianapolis, IN

Bread (lb)

$1.66

$1.75

+5% in Nashville, TN

Eggs (doz)

$3.63

$2.21

+39% in Indianapolis, IN

Ground Beef (lb)

$6.77

$6.45

+5% in Indianapolis, IN

Chicken (lb)

$2.10

$1.90

+9% in Indianapolis, IN

Bananas (lb)

$0.62

about equal

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

State Taxes

Sales Tax (IN / TN)

about equal

Income Tax (top rate)

2.95%

None

+3.0 pp in IN

Indianapolis vs Nashville — FAQ

Is it cheaper to live in Indianapolis or Nashville?: Indianapolis, IN is cheaper. Its monthly baseline of $1,150 (1BR rent + utilities) runs about 23% below Nashville, TN's $1,490, mainly because of rent.
How much more do you need to earn to live in Indianapolis than in Nashville?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $39,000 a year in Indianapolis versus $53,000 in Nashville.
Which has lower taxes, Indianapolis or Nashville?: Indianapolis is taxed under Indiana's rules (a top state income tax rate of 2.95% and a 7% state sales tax); Nashville under Tennessee's (no state income tax 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).