Cost of Living in Indiana
Based on 1 city we track in Indiana.
Cost of living in Indiana is shaped mostly by rent across the 1 city we track there. A one-bedroom apartment runs around $963 a month — 19% lower than the $1,191 median across the 28 states we track.
Median household income across those cities is $62,995, 12% lower than the $71,716 median across the states we track. Indiana has a top state income tax rate of 2.95% and a 7% state sales tax.
State Medians
Median 1BR Rent
$963
Median Home Value
$207,000
Median Income
$62,995
Avg Temperature
53.2°F
Medians across the Indiana cities we track — not a statewide population-weighted figure.
State Taxes
State Sales Tax
7%
State Income Tax (top rate)
Up to 2.95%
Cities in Indiana
Compare Indiana with
Indiana cost of living — FAQ
- Is Indiana expensive to live in?
- Indiana is among the more affordable of the 28 states we track. Its median one-bedroom rent of $963 ranks #24 of 28 and is 19% lower than the $1,191 median.
- What is the average rent in Indiana?
- Across the 1 city we track in Indiana, average rent runs a studio around $933, a one-bedroom around $963, a two-bedroom around $1,132, a three-bedroom around $1,304 per month (US Census ACS).
- What is the median home price in Indiana?
- The median home value across the cities we track in Indiana is $207,000 — 35% lower than the $317,950 median across the states we track.
- Does Indiana have a state income tax?
- Yes — Indiana's top state income tax rate is 2.95% (most filers pay less than the top rate). Its state sales tax rate is 7%; local jurisdictions may add more.
- How much do you need to earn to live in Indiana?
- To keep a one-bedroom rent of $963 near the recommended 30% of gross income, you'd want to earn roughly $39,000 a year. Median household income across the cities we track in Indiana is $62,995.
Sources: US Census Bureau, ACS 5-Year; NOAA Climate Normals 1981–2010; Tax Foundation 2026 (state taxes).