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

Indianapolis

Indiana
74
VS

Nashville

Tennessee
110

Indianapolis is 33% cheaper than Nashville.

$1,112/mo ↓ 25%
Median Rent
$1,486/mo ↑ 34%
$62,995/yr ↓ 16%
Median Income
$75,197/yr ↑ 19%
$207,000 ↓ 46%
Home Value
$383,100 ↑ 85%
$1,124/mo ↓ 24%
Owner Costs
$1,471/mo ↑ 31%
882,043
Population
684,298

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
23.7%
rent-to-income

Detailed Comparison

When comparing Indianapolis, IN and Nashville, TN, the overall cost of living indices are 74 and 110 respectively (national median = 100). Rent is $374/month cheaper in Indianapolis, saving renters about $4,488/year.

Median household income is $12,202/year higher in Nashville. Home values also differ significantly — the median in Indianapolis is $207,000 compared to $383,100 in Nashville.

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

Frequently Asked Questions

Indianapolis vs Nashville — common questions

Is Indianapolis or Nashville cheaper to live in?
Based on our cost index, Indianapolis is cheaper to live in with an index of 74 compared to 110 (US average = 100).
What is the rent difference between Indianapolis and Nashville?
Median rent in Indianapolis is $1,112/month and in Nashville it's $1,486/month — a difference of $374/month.
Which city has higher income, Indianapolis or Nashville?
Median household income is $62,995 in Indianapolis and $75,197 in Nashville. Median household income is $12,202/year higher in Nashville.
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 Nashville?
It depends on your priorities. Indianapolis has a cost index of 74 with median rent of $1,112/mo, while Nashville has a cost index of 110 with rent of $1,486/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
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