Is it cheaper to live in Indianapolis or Salem?

Indianapolis, IN is cheaper. Its monthly baseline of $1,150 (1BR rent + utilities) runs about 2% below Salem, OR's $1,170, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $39,000 a year in Indianapolis versus $40,000 in Salem.

Which has lower taxes, Indianapolis or Salem?

Indianapolis is taxed under Indiana's rules (a top state income tax rate of 2.95% and a 7% state sales tax); Salem under Oregon's (a top state income tax rate of 9.90% and no state sales tax).

Indianapolis vs Salem Cost of Living 2026

Indianapolis

Indiana

$1,150/mo est.

Salem

Oregon

$1,170/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 $1,170 in Salem, OR. Overall, Indianapolis, IN is roughly 2% cheaper to live in day-to-day than Salem, OR, driven mainly by rent.

Median household income is $62,995 in Indianapolis, IN and $71,900 in Salem, OR — about 12% higher in Salem, OR. Indiana has a top state income tax rate of 2.95% and a 7% state sales tax; Oregon has a top state income tax rate of 9.90% and no state sales tax.

Indianapolis, IN

Salem, OR

Rent

Studio

$933

$1,075

+15% in Salem, OR

1 Bedroom

$963

$989

+3% in Salem, OR

2 Bedroom

$1,132

$1,337

+18% in Salem, OR

3 Bedroom

$1,304

$1,778

+36% in Salem, OR

Buying a Home

Median Home Value

$207,000

$382,400

+85% in Salem, OR

Income

Median Household Income

$62,995

$71,900

+14% in Salem, OR

Metro Median Wage (annual)

$49,340

$55,310

+12% in Salem, OR

People & Lifestyle

Median Age

34.1 yr

35.7 yr

+1.6 yr in Salem, OR

Homeownership

55.3%

55.7%

+0.4 pp in Salem, OR

Bachelor's+ (25+)

34.2%

31.4%

+2.8 pp in Indianapolis, IN

Avg Commute

24.3 min

22.4 min

+1.9 min in Indianapolis, IN

Crime (per 100k/yr)

Violent Crime

936.6

540.6

+42% in Indianapolis, IN

Property Crime

3,351.7

2,878.6

+14% 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

53.0°F

+0.2°F in Indianapolis, IN

Annual Precipitation

42.4 in

39.7 in

+2.8 in in Indianapolis, IN

Gas

Regular Gasoline

$3.94/gal

$5.09/gal

+29% in Salem, OR

Area: Midwest (PADD 2) vs West Coast (PADD 5).

Public Transit

Base Fare (one-way)

$1.75

—

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

Utilities

Electricity (¢/kWh)

18.1

16.3

+10% in Indianapolis, IN

Natural Gas ($/MCF)

$13.70

$20.59

+50% in Salem, OR

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

Groceries

Milk (gal)

$4.31

$4.82

+12% in Salem, OR

Bread (lb)

$1.66

$2.04

+23% in Salem, OR

Eggs (doz)

$3.63

$2.19

+40% in Indianapolis, IN

Ground Beef (lb)

$6.77

$7.36

+9% in Salem, OR

Chicken (lb)

$2.10

$2.01

+4% in Indianapolis, IN

Bananas (lb)

$0.62

$0.70

+14% in Salem, OR

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

State Taxes

Sales Tax (IN / OR)

None

+7.0 pp in IN

Income Tax (top rate)

2.95%

9.90%

+7.0 pp in OR

Indianapolis vs Salem — FAQ

Is it cheaper to live in Indianapolis or Salem?: Indianapolis, IN is cheaper. Its monthly baseline of $1,150 (1BR rent + utilities) runs about 2% below Salem, OR's $1,170, mainly because of rent.
How much more do you need to earn to live in Indianapolis than in Salem?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $39,000 a year in Indianapolis versus $40,000 in Salem.
Which has lower taxes, Indianapolis or Salem?: Indianapolis is taxed under Indiana's rules (a top state income tax rate of 2.95% and a 7% state sales tax); Salem under Oregon's (a top state income tax rate of 9.90% and no 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).