Cost of Living: Indianapolis, IN vs Chattanooga, TN (2026)

Indianapolis

Indiana
74
VS

Chattanooga

Tennessee
81

Indianapolis is 9% cheaper than Chattanooga.

$1,112/mo ↓ 4%
Median Rent
$1,155/mo ↑ 4%
$62,995/yr ↑ 3%
Median Income
$61,028/yr ↓ 3%
$207,000 ↓ 20%
Home Value
$259,200 ↑ 25%
$1,124/mo ↑ 1%
Owner Costs
$1,112/mo ↓ 1%
882,043
Population
182,832

Tax Comparison

3.05%
Income Tax
0%
7.0%
State Sales Tax
7.0%
0.83%
Property Tax
0.64%

Affordability

21.2%
rent-to-income
Affordability
22.7%
rent-to-income

Detailed Comparison

When comparing Indianapolis, IN and Chattanooga, TN, the overall cost of living indices are 74 and 81 respectively (national median = 100). Rent is comparable in both cities, with less than $50/month separating them.

Median household income is $1,967/year higher in Indianapolis. Home values also differ significantly — the median in Indianapolis is $207,000 compared to $259,200 in Chattanooga.

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

Frequently Asked Questions

Indianapolis vs Chattanooga — common questions

Is Indianapolis or Chattanooga cheaper to live in?
Based on our cost index, Indianapolis is cheaper to live in with an index of 74 compared to 81 (US average = 100).
What is the rent difference between Indianapolis and Chattanooga?
Median rent in Indianapolis is $1,112/month and in Chattanooga it's $1,155/month — a difference of $43/month.
Which city has higher income, Indianapolis or Chattanooga?
Median household income is $62,995 in Indianapolis and $61,028 in Chattanooga. Median household income is $1,967/year higher in Indianapolis.
How do taxes compare between Indiana and Tennessee?
Indiana has 3.05% income tax, 7.0% sales tax, and 0.83% property tax. Tennessee has 0% income tax, 7.0% sales tax, and 0.64% property tax.
Should I move to Indianapolis or Chattanooga?
It depends on your priorities. Indianapolis has a cost index of 74 with median rent of $1,112/mo, while Chattanooga has a cost index of 81 with rent of $1,155/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Indianapolis details → View Chattanooga details →

More Comparisons

Other cost of living comparisons for Indianapolis and Chattanooga

Indianapolis vs. Charlotte Indianapolis vs. San Francisco Indianapolis vs. Columbus Indianapolis vs. Seattle Indianapolis vs. Fort Worth Indianapolis vs. Denver Chattanooga vs. Fort Lauderdale Chattanooga vs. Aurora Chattanooga vs. Shreveport Chattanooga vs. Ontario Chattanooga vs. Newport News Chattanooga vs. Eugene