Cost of Living: Chicago, IL vs Indianapolis, IN (2026)

Chicago

Illinois
100
VS

Indianapolis

Indiana
74

Chicago is 35% more expensive than Indianapolis.

$1,380/mo ↑ 24%
Median Rent
$1,112/mo ↓ 19%
$75,134/yr ↑ 19%
Median Income
$62,995/yr ↓ 16%
$315,200 ↑ 52%
Home Value
$207,000 ↓ 34%
$1,502/mo ↑ 34%
Owner Costs
$1,124/mo ↓ 25%
2,707,648
Population
882,043

Tax Comparison

4.95%
Income Tax
3.05%
6.25%
State Sales Tax
7.0%
2.07%
Property Tax
0.83%

Affordability

22.0%
rent-to-income
Affordability
21.2%
rent-to-income

Detailed Comparison

When comparing Chicago, IL and Indianapolis, IN, the overall cost of living indices are 100 and 74 respectively (national median = 100). Rent is $268/month cheaper in Indianapolis, saving renters about $3,216/year.

Median household income is $12,139/year higher in Chicago. Home values also differ significantly — the median in Chicago is $315,200 compared to $207,000 in Indianapolis.

Indiana has a lower income tax rate, making Indianapolis slightly more tax-friendly.

Frequently Asked Questions

Chicago vs Indianapolis — common questions

Is Chicago or Indianapolis cheaper to live in?
Based on our cost index, Indianapolis is cheaper to live in with an index of 74 compared to 100 (US average = 100).
What is the rent difference between Chicago and Indianapolis?
Median rent in Chicago is $1,380/month and in Indianapolis it's $1,112/month — a difference of $268/month.
Which city has higher income, Chicago or Indianapolis?
Median household income is $75,134 in Chicago and $62,995 in Indianapolis. Median household income is $12,139/year higher in Chicago.
How do taxes compare between Illinois and Indiana?
Illinois has 4.95% income tax, 6.25% sales tax, and 2.07% property tax. Indiana has 3.05% income tax, 7.0% sales tax, and 0.83% property tax.
Should I move to Chicago or Indianapolis?
It depends on your priorities. Chicago has a cost index of 100 with median rent of $1,380/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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