Cost of Living: Austin, TX vs Indianapolis, IN (2026)

Austin

Texas
134
VS

Indianapolis

Indiana
74

Austin is 60% more expensive than Indianapolis.

$1,655/mo ↑ 49%
Median Rent
$1,112/mo ↓ 33%
$91,461/yr ↑ 45%
Median Income
$62,995/yr ↓ 31%
$512,700 ↑ 148%
Home Value
$207,000 ↓ 60%
$1,747/mo ↑ 55%
Owner Costs
$1,124/mo ↓ 36%
967,862
Population
882,043

Tax Comparison

0%
Income Tax
3.05%
6.25%
Sales Tax
7.0%
1.6%
Property Tax
0.83%

Affordability

21.7%
rent-to-income
Affordability
21.2%
rent-to-income

Detailed Comparison

When comparing Austin, TX and Indianapolis, IN, the overall cost of living indices are 134 and 74 respectively (national median = 100). Rent is $543/month cheaper in Indianapolis, saving renters about $6,516/year.

Median household income is $28,466/year higher in Austin. Home values also differ significantly — the median in Austin is $512,700 compared to $207,000 in Indianapolis.

Texas has no state income tax, giving Austin residents a significant tax advantage over Indiana's 3.05% rate.

Frequently Asked Questions

Austin vs Indianapolis — common questions

Is Austin or Indianapolis cheaper to live in?
Based on our cost index, Indianapolis is cheaper to live in with an index of 74 compared to 134 (US average = 100).
What is the rent difference between Austin and Indianapolis?
Median rent in Austin is $1,655/month and in Indianapolis it's $1,112/month — a difference of $543/month.
Which city has higher income, Austin or Indianapolis?
Median household income is $91,461 in Austin and $62,995 in Indianapolis. Median household income is $28,466/year higher in Austin.
How do taxes compare between Texas and Indiana?
Texas has 0% income tax, 6.25% sales tax, and 1.6% property tax. Indiana has 3.05% income tax, 7.0% sales tax, and 0.83% property tax.
Should I move to Austin or Indianapolis?
It depends on your priorities. Austin has a cost index of 134 with median rent of $1,655/mo, while Indianapolis has a cost index of 74 with rent of $1,112/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
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