Cost of Living in Indiana
Based on 3 cities we track in Indiana.
Cost of living in Indiana is shaped mostly by rent across the 3 cities we track there. A one-bedroom apartment runs around $782 a month — 26% lower than the $1,052 median across the 51 states we track.
Median household income across those cities is $60,293, 10% lower than the $67,043 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
$782
Median Home Value
$169,700
Median Income
$60,293
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
AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming
Indiana cost of living — FAQ
- Is Indiana expensive to live in?
- Indiana is among the more affordable of the 51 states we track. Its median one-bedroom rent of $782 ranks #48 of 51 and is 26% lower than the $1,052 median.
- What is the average rent in Indiana?
- Across the 3 cities we track in Indiana, average rent runs a studio around $798, a one-bedroom around $782, a two-bedroom around $1,022, a three-bedroom around $1,167 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 $169,700 — 41% lower than the $287,500 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 $782 near the recommended 30% of gross income, you'd want to earn roughly $31,000 a year. Median household income across the cities we track in Indiana is $60,293.
Sources: US Census Bureau, ACS 5-Year; NOAA Climate Normals 1981–2010; Tax Foundation 2026 (state taxes).