Carmel, IN

Above Avg · 126

Indiana · Population 100,501 · Updated March 2026

$1,607
Median Rent / Month
$134,602
Median Income
$455,500
Median Home Value
$1,735
Owner Costs / Month

Affordability

How far your income goes in Carmel

14.3%
Rent-to-Income Ratio
Affordable
Rent takes less than 25% of median income — considered affordable by HUD standards.

Tax Burden in Indiana

State-level tax rates that affect your costs

3.05%
Income Tax (Top Rate)
7.0%
Sales Tax
0.83%
Property Tax Rate

Estimated Annual Costs

$19,284
Annual Rent
$4,105
State Income Tax
$3,781
Property Tax (est.)

Cost of Living Overview

Carmel has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 126 (where 100 equals the national median), Carmel residents can expect to pay median rent of $1,607/month while earning a median household income of $134,602/year.

The median home value in Carmel, IN is $455,500, with typical monthly owner costs around $1,735 including mortgage, insurance, and taxes. The median rent-to-income ratio of 14.3% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.

Indiana has a moderate income tax rate of 3.05%. Combined with a 7.0% sales tax rate and 0.83% effective property tax rate, the overall tax environment is a factor in the total cost of living in Carmel.

Frequently Asked Questions

Common questions about living costs in Carmel

What is the cost of living in Carmel, IN?
The cost of living index in Carmel, IN is 126 (US average = 100). Median monthly rent is $1,607, median household income is $134,602/year, and the median home value is $455,500.
Is Carmel, IN affordable?
No, Carmel is more expensive than the national average with a cost index of 126. The rent-to-income ratio is 14.3%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Carmel, IN?
The median gross rent in Carmel, IN is $1,607 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $19,284.
What is the median household income in Carmel?
The median household income in Carmel, IN is $134,602 per year. This compares to the national median of approximately $80,000.
What are the taxes like in Indiana?
Indiana has a top income tax rate of 3.05%, a sales tax of 7.0%, and an effective property tax rate of 0.83%.