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

Indianapolis

Indiana
74
VS

Memphis

Tennessee
68

Indianapolis is 9% more expensive than Memphis.

$1,112/mo ≈ Same
Median Rent
$1,123/mo ≈ Same
$62,995/yr ↑ 23%
Median Income
$51,211/yr ↓ 19%
$207,000 ↑ 32%
Home Value
$157,100 ↓ 24%
$1,124/mo ↑ 3%
Owner Costs
$1,087/mo ↓ 3%
882,043
Population
629,063

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 Memphis, TN, the overall cost of living indices are 74 and 68 respectively (national median = 100). Rent is comparable in both cities, with less than $50/month separating them.

Median household income is $11,784/year higher in Indianapolis. Home values also differ significantly — the median in Indianapolis is $207,000 compared to $157,100 in Memphis.

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

Frequently Asked Questions

Indianapolis vs Memphis — common questions

Is Indianapolis or Memphis cheaper to live in?
Based on our cost index, Memphis is cheaper to live in with an index of 68 compared to 74 (US average = 100).
What is the rent difference between Indianapolis and Memphis?
Median rent in Indianapolis is $1,112/month and in Memphis it's $1,123/month — a difference of $11/month.
Which city has higher income, Indianapolis or Memphis?
Median household income is $62,995 in Indianapolis and $51,211 in Memphis. Median household income is $11,784/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 Memphis?
It depends on your priorities. Indianapolis has a cost index of 74 with median rent of $1,112/mo, while Memphis has a cost index of 68 with rent of $1,123/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
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