New Albany, IN

Very Low · 63

Indiana · Population 37,589 · Updated March 2026

$971
Median Rent / Month
$54,152
Median Income
$169,600
Median Home Value
$968
Owner Costs / Month

Affordability

How far your income goes in New Albany

21.5%
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

$11,652
Annual Rent
$1,652
State Income Tax
$1,408
Property Tax (est.)

Cost of Living Overview

New Albany is significantly cheaper than the national average, making it an attractive option for budget-conscious individuals and families. With a cost index of 63 (where 100 equals the national median), New Albany residents can expect to pay median rent of $971/month while earning a median household income of $54,152/year.

The median home value in New Albany, IN is $169,600, with typical monthly owner costs around $968 including mortgage, insurance, and taxes. The median rent-to-income ratio of 21.5% 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 New Albany.

Frequently Asked Questions

Common questions about living costs in New Albany

What is the cost of living in New Albany, IN?
The cost of living index in New Albany, IN is 63 (US average = 100). Median monthly rent is $971, median household income is $54,152/year, and the median home value is $169,600.
Is New Albany, IN affordable?
Yes, New Albany is more affordable than the national average with a cost index of 63. The rent-to-income ratio is 21.5%—below the 30%% threshold considered affordable by HUD.
What is the average rent in New Albany, IN?
The median gross rent in New Albany, IN is $971 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $11,652.
What is the median household income in New Albany?
The median household income in New Albany, IN is $54,152 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%.