Indiana · Population 882,043 · Updated March 2026
How far your income goes in Indianapolis
State-level tax rates that affect your costs
Indianapolis is significantly cheaper than the national average, making it an attractive option for budget-conscious individuals and families. With a cost index of 74 (where 100 equals the national median), Indianapolis residents can expect to pay median rent of $1,112/month while earning a median household income of $62,995/year.
The median home value in Indianapolis, IN is $207,000, with typical monthly owner costs around $1,124 including mortgage, insurance, and taxes. The median rent-to-income ratio of 21.2% 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 Indianapolis.
Common questions about living costs in Indianapolis
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