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

Indianapolis

Indiana
74
VS

Knoxville

Tennessee
74

Indianapolis and Knoxville have a similar cost of living.

$1,112/mo ≈ Same
Median Rent
$1,116/mo ≈ Same
$62,995/yr ↑ 24%
Median Income
$50,994/yr ↓ 19%
$207,000 ↓ 3%
Home Value
$214,000 ↑ 3%
$1,124/mo ↑ 5%
Owner Costs
$1,075/mo ↓ 4%
882,043
Population
193,721

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
26.3%
rent-to-income

Detailed Comparison

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

Median household income is $12,001/year higher in Indianapolis. Home values also differ significantly — the median in Indianapolis is $207,000 compared to $214,000 in Knoxville.

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

Frequently Asked Questions

Indianapolis vs Knoxville — common questions

Is Indianapolis or Knoxville cheaper to live in?
Based on our cost index, Knoxville is cheaper to live in with an index of 74 compared to 74 (US average = 100).
What is the rent difference between Indianapolis and Knoxville?
Median rent in Indianapolis is $1,112/month and in Knoxville it's $1,116/month — a difference of $4/month.
Which city has higher income, Indianapolis or Knoxville?
Median household income is $62,995 in Indianapolis and $50,994 in Knoxville. Median household income is $12,001/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 Knoxville?
It depends on your priorities. Indianapolis has a cost index of 74 with median rent of $1,112/mo, while Knoxville has a cost index of 74 with rent of $1,116/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
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