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

Houston

Texas
88
VS

Indianapolis

Indiana
74

Houston is 19% more expensive than Indianapolis.

$1,313/mo ↑ 18%
Median Rent
$1,112/mo ↓ 15%
$62,894/yr ≈ Same
Median Income
$62,995/yr ≈ Same
$253,400 ↑ 22%
Home Value
$207,000 ↓ 18%
$1,316/mo ↑ 17%
Owner Costs
$1,124/mo ↓ 15%
2,300,419
Population
882,043

Tax Comparison

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

Affordability

25.1%
rent-to-income
Affordability
21.2%
rent-to-income

Detailed Comparison

When comparing Houston, TX and Indianapolis, IN, the overall cost of living indices are 88 and 74 respectively (national median = 100). Rent is $201/month cheaper in Indianapolis, saving renters about $2,412/year.

Median household income is $101/year higher in Indianapolis. Home values also differ significantly — the median in Houston is $253,400 compared to $207,000 in Indianapolis.

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

Frequently Asked Questions

Houston vs Indianapolis — common questions

Is Houston or Indianapolis cheaper to live in?
Based on our cost index, Indianapolis is cheaper to live in with an index of 74 compared to 88 (US average = 100).
What is the rent difference between Houston and Indianapolis?
Median rent in Houston is $1,313/month and in Indianapolis it's $1,112/month — a difference of $201/month.
Which city has higher income, Houston or Indianapolis?
Median household income is $62,894 in Houston and $62,995 in Indianapolis. Median household income is $101/year higher in Indianapolis.
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 Houston or Indianapolis?
It depends on your priorities. Houston has a cost index of 88 with median rent of $1,313/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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