Cost of Living in Indiana 2026 — Housing, Income & Taxes

📊 Indiana at a Glance — 2026

Cost of Living Index

US average = 100 · Below Average

Median Household Income

$58,000

Source: U.S. Census Bureau ACS

Average 1BR Rent

$950/mo

Source: Zillow Observed Rent Index

State Income Tax

3.15%

Check official state rates

Average Home Price

$220,000

Source: Zillow Home Value Index

Salary Needed (30% rule)

$38,000

To keep housing under 30% of income

📈 Indiana vs the National Average

Cost of Living

Indiana runs 12% below the national average (index 88 vs. the U.S. baseline of 100). Indiana's low cost of living is helped by a steady supply of new housing construction and a relatively low property tax burden. On the tax side, Indiana applies a flat state income tax rate, plus additional local county income taxes in most areas.

💡 What Salary Do You Need in Indiana?

Using the 50/30/20 budget rule, housing should cost no more than 30% of your gross income. With average rent at $950/month in Indiana, you need roughly $38,000/year to live comfortably without being housing-cost-burdened.

Find out exactly how much you take home after Indiana taxes

💰 Calculate Indiana Take-Home Pay → 🏡 See How Much Home You Can Afford →

Is Indiana expensive to live in?

Indiana's cost of living index is 88, where 100 is the U.S. average — that's 12% below the national average. Indiana's low cost of living is helped by a steady supply of new housing construction and a relatively low property tax burden. The biggest local industries are manufacturing (automotive and pharmaceuticals), and logistics given its central location, centered around Indianapolis.

What is the average rent in Indiana in 2026?

A 1-bedroom apartment in Indiana averages $950/month as of 2026 (Zillow Observed Rent Index). That's set against a median household income of $58,000/year, so rent alone runs roughly 20% of the typical household's pre-tax income.

What salary do you need to live in Indiana?

Following the standard 30%-of-income guideline for housing, you'd want roughly $38,000/year to cover Indiana's average rent comfortably. That's a general rule of thumb, not a hard rule — your real number depends on debt, family size, and where in Indiana you're looking. Our free paycheck calculator shows your actual take-home pay after Indiana taxes.

Does Indiana have a state income tax?

Indiana applies a flat state income tax rate, plus additional local county income taxes in most areas. The listed rate is 3.15%. Use our free paycheck calculator to see exactly how that affects your specific take-home pay.

🔗 More Free Tools

💰 PayCalc Pro — See your take-home pay after Indiana taxes 🏡 HomeBuy Calc — How much home can you afford in Indiana? 📊 Compare All 50 States — Cost of Living by State 2026

Cost of Living in Indiana 2026 — Full Guide

Indiana's cost of living index sits at 88, meaning it runs 12% below the national average. Indiana's low cost of living is helped by a steady supply of new housing construction and a relatively low property tax burden.

Indiana's Economy

Indiana's economy centers on manufacturing (automotive and pharmaceuticals), and logistics given its central location, with most of that activity concentrated around Indianapolis. That local economic base shapes everything from job availability to how quickly housing supply responds to demand — a state built around a few large employers behaves very differently, cost-wise, than one with a diversified metro economy.

Housing Costs in Indiana

The average rent for a 1-bedroom apartment in Indiana is approximately $950 per month in 2026. Average home values sit around $220,000. Indiana's low cost of living is helped by a steady supply of new housing construction and a relatively low property tax burden.

Taxes in Indiana

Indiana applies a flat state income tax rate, plus additional local county income taxes in most areas. The current listed rate is 3.15%. Combined with federal taxes, this determines your real take-home pay — use our free paycheck calculator to see the exact impact on your specific salary rather than relying on a statewide average.

Data Sources

Cost of living index data is based on the Council for Community and Economic Research (C2ER) methodology. Income figures are from the U.S. Census Bureau American Community Survey (ACS). Rent data is sourced from the Zillow Observed Rent Index. All figures represent approximations and should be verified with official sources for financial planning.

All data is for informational purposes only and is not financial or legal advice.

Cost of Living inIndiana 2026