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

Indianapolis

Indiana
74
VS

Paterson

New Jersey
106

Indianapolis is 30% cheaper than Paterson.

$1,112/mo ↓ 24%
Median Rent
$1,457/mo ↑ 31%
$62,995/yr ↑ 17%
Median Income
$53,766/yr ↓ 15%
$207,000 ↓ 38%
Home Value
$335,400 ↑ 62%
$1,124/mo ↓ 28%
Owner Costs
$1,553/mo ↑ 38%
882,043
Population
157,660

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
32.5%
rent-to-income

Detailed Comparison

When comparing Indianapolis, IN and Paterson, NJ, the overall cost of living indices are 74 and 106 respectively (national median = 100). Rent is $345/month cheaper in Indianapolis, saving renters about $4,140/year.

Median household income is $9,229/year higher in Indianapolis. Home values also differ significantly — the median in Indianapolis is $207,000 compared to $335,400 in Paterson.

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

Frequently Asked Questions

Indianapolis vs Paterson — common questions

Is Indianapolis or Paterson cheaper to live in?
Based on our cost index, Indianapolis is cheaper to live in with an index of 74 compared to 106 (US average = 100).
What is the rent difference between Indianapolis and Paterson?
Median rent in Indianapolis is $1,112/month and in Paterson it's $1,457/month — a difference of $345/month.
Which city has higher income, Indianapolis or Paterson?
Median household income is $62,995 in Indianapolis and $53,766 in Paterson. Median household income is $9,229/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 Paterson?
It depends on your priorities. Indianapolis has a cost index of 74 with median rent of $1,112/mo, while Paterson has a cost index of 106 with rent of $1,457/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Indianapolis details → View Paterson details →

More Comparisons

Other cost of living comparisons for Indianapolis and Paterson

Indianapolis vs. Charlotte Indianapolis vs. San Francisco Indianapolis vs. Columbus Indianapolis vs. Seattle Indianapolis vs. Fort Worth Indianapolis vs. Denver Paterson vs. Corona Paterson vs. Murfreesboro Paterson vs. Hayward Paterson vs. Alexandria Paterson vs. Salinas Paterson vs. Macon