Cost of Living: Phoenix, AZ vs Indianapolis, IN (2026)

Phoenix

Arizona
109
VS

Indianapolis

Indiana
74

Phoenix is 47% more expensive than Indianapolis.

$1,458/mo ↑ 31%
Median Rent
$1,112/mo ↓ 24%
$77,041/yr ↑ 22%
Median Income
$62,995/yr ↓ 18%
$381,900 ↑ 84%
Home Value
$207,000 ↓ 46%
$1,430/mo ↑ 27%
Owner Costs
$1,124/mo ↓ 21%
1,624,832
Population
882,043

Tax Comparison

2.5%
Income Tax
3.05%
5.6%
State Sales Tax
7.0%
0.62%
Property Tax
0.83%

Affordability

22.7%
rent-to-income
Affordability
21.2%
rent-to-income

Detailed Comparison

When comparing Phoenix, AZ and Indianapolis, IN, the overall cost of living indices are 109 and 74 respectively (national median = 100). Rent is $346/month cheaper in Indianapolis, saving renters about $4,152/year.

Median household income is $14,046/year higher in Phoenix. Home values also differ significantly — the median in Phoenix is $381,900 compared to $207,000 in Indianapolis.

Arizona has a lower income tax rate, making Phoenix slightly more tax-friendly.

Frequently Asked Questions

Phoenix vs Indianapolis — common questions

Is Phoenix or Indianapolis cheaper to live in?
Based on our cost index, Indianapolis is cheaper to live in with an index of 74 compared to 109 (US average = 100).
What is the rent difference between Phoenix and Indianapolis?
Median rent in Phoenix is $1,458/month and in Indianapolis it's $1,112/month — a difference of $346/month.
Which city has higher income, Phoenix or Indianapolis?
Median household income is $77,041 in Phoenix and $62,995 in Indianapolis. Median household income is $14,046/year higher in Phoenix.
How do taxes compare between Arizona and Indiana?
Arizona has 2.5% income tax, 5.6% sales tax, and 0.62% property tax. Indiana has 3.05% income tax, 7.0% sales tax, and 0.83% property tax.
Should I move to Phoenix or Indianapolis?
It depends on your priorities. Phoenix has a cost index of 109 with median rent of $1,458/mo, while Indianapolis has a cost index of 74 with rent of $1,112/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Phoenix details → View Indianapolis details →

More Comparisons

Other cost of living comparisons for Phoenix and Indianapolis

Phoenix vs. Houston Phoenix vs. Philadelphia Phoenix vs. Chicago Phoenix vs. San Antonio Phoenix vs. Los Angeles Phoenix vs. San Diego Indianapolis vs. Charlotte Indianapolis vs. San Francisco Indianapolis vs. Columbus Indianapolis vs. Seattle Indianapolis vs. Fort Worth Indianapolis vs. Denver