Cost of Living: Indianapolis, IN vs Newark, NJ (2026)

Indianapolis

Indiana
74
VS

Newark

New Jersey
100

Indianapolis is 26% cheaper than Newark.

$1,112/mo ↓ 16%
Median Rent
$1,330/mo ↑ 20%
$62,995/yr ↑ 30%
Median Income
$48,416/yr ↓ 23%
$207,000 ↓ 39%
Home Value
$337,800 ↑ 63%
$1,124/mo ↓ 21%
Owner Costs
$1,419/mo ↑ 26%
882,043
Population
307,188

Tax Comparison

3.05%
Income Tax
10.75%
7.0%
State Sales Tax
6.625%
0.83%
Property Tax
2.23%

Affordability

21.2%
rent-to-income
Affordability
33.0%
rent-to-income

Detailed Comparison

When comparing Indianapolis, IN and Newark, NJ, the overall cost of living indices are 74 and 100 respectively (national median = 100). Rent is $218/month cheaper in Indianapolis, saving renters about $2,616/year.

Median household income is $14,579/year higher in Indianapolis. Home values also differ significantly — the median in Indianapolis is $207,000 compared to $337,800 in Newark.

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

Frequently Asked Questions

Indianapolis vs Newark — common questions

Is Indianapolis or Newark cheaper to live in?
Based on our cost index, Indianapolis is cheaper to live in with an index of 74 compared to 100 (US average = 100).
What is the rent difference between Indianapolis and Newark?
Median rent in Indianapolis is $1,112/month and in Newark it's $1,330/month — a difference of $218/month.
Which city has higher income, Indianapolis or Newark?
Median household income is $62,995 in Indianapolis and $48,416 in Newark. Median household income is $14,579/year higher in Indianapolis.
How do taxes compare between Indiana and New Jersey?
Indiana has 3.05% income tax, 7.0% sales tax, and 0.83% property tax. New Jersey has 10.75% income tax, 6.625% sales tax, and 2.23% property tax.
Should I move to Indianapolis or Newark?
It depends on your priorities. Indianapolis has a cost index of 74 with median rent of $1,112/mo, while Newark has a cost index of 100 with rent of $1,330/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
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