Cost of Living: Indianapolis, IN vs Montgomery, AL (2026)

Indianapolis

Indiana
74
VS

Montgomery

Alabama
64

Indianapolis is 16% more expensive than Montgomery.

$1,112/mo ↑ 5%
Median Rent
$1,059/mo ↓ 5%
$62,995/yr ↑ 13%
Median Income
$55,687/yr ↓ 12%
$207,000 ↑ 39%
Home Value
$148,500 ↓ 28%
$1,124/mo ↑ 10%
Owner Costs
$1,023/mo ↓ 9%
882,043
Population
198,440

Tax Comparison

3.05%
Income Tax
5.0%
7.0%
State Sales Tax
4.0%
0.83%
Property Tax
0.41%

Affordability

21.2%
rent-to-income
Affordability
22.8%
rent-to-income

Detailed Comparison

When comparing Indianapolis, IN and Montgomery, AL, the overall cost of living indices are 74 and 64 respectively (national median = 100). Rent is $53/month cheaper in Montgomery, saving renters about $636/year.

Median household income is $7,308/year higher in Indianapolis. Home values also differ significantly — the median in Indianapolis is $207,000 compared to $148,500 in Montgomery.

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

Frequently Asked Questions

Indianapolis vs Montgomery — common questions

Is Indianapolis or Montgomery cheaper to live in?
Based on our cost index, Montgomery is cheaper to live in with an index of 64 compared to 74 (US average = 100).
What is the rent difference between Indianapolis and Montgomery?
Median rent in Indianapolis is $1,112/month and in Montgomery it's $1,059/month — a difference of $53/month.
Which city has higher income, Indianapolis or Montgomery?
Median household income is $62,995 in Indianapolis and $55,687 in Montgomery. Median household income is $7,308/year higher in Indianapolis.
How do taxes compare between Indiana and Alabama?
Indiana has 3.05% income tax, 7.0% sales tax, and 0.83% property tax. Alabama has 5.0% income tax, 4.0% sales tax, and 0.41% property tax.
Should I move to Indianapolis or Montgomery?
It depends on your priorities. Indianapolis has a cost index of 74 with median rent of $1,112/mo, while Montgomery has a cost index of 64 with rent of $1,059/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Indianapolis details → View Montgomery details →

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