Cost of Living: Indianapolis, IN vs Allentown, PA (2026)

Indianapolis

Indiana
74
VS

Allentown

Pennsylvania
79

Indianapolis is 6% cheaper than Allentown.

$1,112/mo ↓ 12%
Median Rent
$1,269/mo ↑ 14%
$62,995/yr ↑ 18%
Median Income
$53,403/yr ↓ 15%
$207,000 ↑ 10%
Home Value
$188,900 ↓ 9%
$1,124/mo ↓ 10%
Owner Costs
$1,243/mo ↑ 11%
882,043
Population
125,320

Tax Comparison

3.05%
Income Tax
3.07%
7.0%
State Sales Tax
6.0%
0.83%
Property Tax
1.49%

Affordability

21.2%
rent-to-income
Affordability
28.5%
rent-to-income

Detailed Comparison

When comparing Indianapolis, IN and Allentown, PA, the overall cost of living indices are 74 and 79 respectively (national median = 100). Rent is $157/month cheaper in Indianapolis, saving renters about $1,884/year.

Median household income is $9,592/year higher in Indianapolis. Home values also differ significantly — the median in Indianapolis is $207,000 compared to $188,900 in Allentown.

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

Frequently Asked Questions

Indianapolis vs Allentown — common questions

Is Indianapolis or Allentown cheaper to live in?
Based on our cost index, Indianapolis is cheaper to live in with an index of 74 compared to 79 (US average = 100).
What is the rent difference between Indianapolis and Allentown?
Median rent in Indianapolis is $1,112/month and in Allentown it's $1,269/month — a difference of $157/month.
Which city has higher income, Indianapolis or Allentown?
Median household income is $62,995 in Indianapolis and $53,403 in Allentown. Median household income is $9,592/year higher in Indianapolis.
How do taxes compare between Indiana and Pennsylvania?
Indiana has 3.05% income tax, 7.0% sales tax, and 0.83% property tax. Pennsylvania has 3.07% income tax, 6.0% sales tax, and 1.49% property tax.
Should I move to Indianapolis or Allentown?
It depends on your priorities. Indianapolis has a cost index of 74 with median rent of $1,112/mo, while Allentown has a cost index of 79 with rent of $1,269/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Indianapolis details → View Allentown details →

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