Cost of Living: Indianapolis, IN vs Madison, WI (2026)

Indianapolis

Indiana
74
VS

Madison

Wisconsin
103

Indianapolis is 28% cheaper than Madison.

$1,112/mo ↓ 18%
Median Rent
$1,364/mo ↑ 23%
$62,995/yr ↓ 18%
Median Income
$76,983/yr ↑ 22%
$207,000 ↓ 40%
Home Value
$346,900 ↑ 68%
$1,124/mo ↓ 24%
Owner Costs
$1,476/mo ↑ 31%
882,043
Population
275,568

Tax Comparison

3.05%
Income Tax
7.65%
7.0%
State Sales Tax
5.0%
0.83%
Property Tax
1.61%

Affordability

21.2%
rent-to-income
Affordability
21.3%
rent-to-income

Detailed Comparison

When comparing Indianapolis, IN and Madison, WI, the overall cost of living indices are 74 and 103 respectively (national median = 100). Rent is $252/month cheaper in Indianapolis, saving renters about $3,024/year.

Median household income is $13,988/year higher in Madison. Home values also differ significantly — the median in Indianapolis is $207,000 compared to $346,900 in Madison.

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

Frequently Asked Questions

Indianapolis vs Madison — common questions

Is Indianapolis or Madison cheaper to live in?
Based on our cost index, Indianapolis is cheaper to live in with an index of 74 compared to 103 (US average = 100).
What is the rent difference between Indianapolis and Madison?
Median rent in Indianapolis is $1,112/month and in Madison it's $1,364/month — a difference of $252/month.
Which city has higher income, Indianapolis or Madison?
Median household income is $62,995 in Indianapolis and $76,983 in Madison. Median household income is $13,988/year higher in Madison.
How do taxes compare between Indiana and Wisconsin?
Indiana has 3.05% income tax, 7.0% sales tax, and 0.83% property tax. Wisconsin has 7.65% income tax, 5.0% sales tax, and 1.61% property tax.
Should I move to Indianapolis or Madison?
It depends on your priorities. Indianapolis has a cost index of 74 with median rent of $1,112/mo, while Madison has a cost index of 103 with rent of $1,364/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
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