Living Cost Compare
Indianapolis

Indiana

$1,160/mo est.

vs
Paterson

New Jersey

$1,430/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,160 in Indianapolis, IN versus $1,430 in Paterson, NJ. Overall, Indianapolis, IN is roughly 19% cheaper to live in day-to-day than Paterson, NJ, driven mainly by rent.

Median household income is $62,995 in Indianapolis, IN and $53,766 in Paterson, NJ — about 15% higher in Indianapolis, IN. Indiana has a top state income tax rate of 2.95% and a 7% state sales tax; New Jersey has a top state income tax rate of 10.75% and a 6.625% state sales tax.

Indianapolis, IN
Paterson, NJ

Rent

Studio
$933
$786
+16% in Indianapolis, IN
1 Bedroom
$963
$1,183
+23% in Paterson, NJ
2 Bedroom
$1,132
$1,468
+30% in Paterson, NJ
3 Bedroom
$1,304
$1,729
+33% in Paterson, NJ

Buying a Home

Median Home Value
$207,000
$335,400
+62% in Paterson, NJ

Income

Median Household Income
$62,995
$53,766
+15% in Indianapolis, IN
Metro Median Wage (annual)
$49,340
$61,430
+25% in Paterson, NJ

People & Lifestyle

Median Age
34.1 yr
33.3 yr
+0.8 yr in Indianapolis, IN
Homeownership
55.3%
26.2%
+29.1 pp in Indianapolis, IN
Bachelor's+ (25+)
34.2%
12.5%
+21.7 pp in Indianapolis, IN
Avg Commute
24.3 min
23.1 min
+1.2 min in Indianapolis, IN

Crime (per 100k/yr)

Violent Crime
936.6
1,010.1
+8% in Paterson, NJ
Property Crime
3,351.7
2,391.4
+29% 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
53.2°F
52.2°F
+1.0°F in Indianapolis, IN
Annual Precipitation
42.4 in
49.0 in
+6.6 in in Paterson, NJ

Gas

Regular Gasoline
$3.85/gal
$3.94/gal
+2% in Paterson, NJ

Area: Midwest (PADD 2) vs East Coast (PADD 1).

Public Transit

Base Fare (one-way)
$1.75
—

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

Utilities

Electricity (¢/kWh)
17.5
24.9
+42% in Paterson, NJ
Natural Gas ($/MCF)
$24.52
$17.68
+28% in Indianapolis, IN

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

Groceries

Milk (gal)
$4.31
$4.31
about equal
Bread (lb)
$1.66
$1.92
+16% in Paterson, NJ
Eggs (doz)
$3.63
$2.19
+40% in Indianapolis, IN
Ground Beef (lb)
$6.77
$6.90
+2% in Paterson, NJ
Chicken (lb)
$2.10
$2.19
+4% in Paterson, NJ
Bananas (lb)
$0.62
$0.69
+12% in Paterson, NJ

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

State Taxes

Sales Tax (IN / NJ)
7%
6.625%
+0.4 pp in IN
Income Tax (top rate)
2.95%
10.75%
+7.8 pp in NJ

Indianapolis vs Paterson — FAQ

Is it cheaper to live in Indianapolis or Paterson?
Indianapolis, IN is cheaper. Its monthly baseline of $1,160 (1BR rent + utilities) runs about 19% below Paterson, NJ's $1,430, mainly because of rent.
How much more do you need to earn to live in Indianapolis than in Paterson?
To keep rent near the recommended 30% of gross income, you'd want to earn roughly $39,000 a year in Indianapolis versus $47,000 in Paterson.
Which has lower taxes, Indianapolis or Paterson?
Indianapolis is taxed under Indiana's rules (a top state income tax rate of 2.95% and a 7% state sales tax); Paterson under New Jersey's (a top state income tax rate of 10.75% and a 6.625% 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).