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Cost of Living · Indiana

Indianapolis Cost of Living

Indianapolis, Indiana costs approximately 10.0% below the US national average. Compare with 99 other major US cities.

0.90×
cost-of-living index (1.00 = US national average)
Indianapolis ranks 1 of 2 cities in Indiana by cost of living.
Cities MORE expensive than Indianapolis (88)
San Francisco, CA
+61.1% more expensive
Oakland, CA
+50.0% more expensive
New York City, NY
+46.7% more expensive
Honolulu, HI
+44.4% more expensive
Irvine, CA
+44.4% more expensive
Los Angeles, CA
+35.6% more expensive
Boston, MA
+35.6% more expensive
San Diego, CA
+34.4% more expensive
Yonkers, NY
+33.3% more expensive
Anchorage, AK
+33.3% more expensive
Seattle, WA
+31.1% more expensive
Long Beach, CA
+31.1% more expensive
Anaheim, CA
+31.1% more expensive
Scottsdale, AZ
+31.1% more expensive
Chula Vista, CA
+27.8% more expensive
Miami, FL
+24.4% more expensive
Portland, OR
+22.2% more expensive
Newark, NJ
+22.2% more expensive
Sacramento, CA
+22.2% more expensive
Riverside, CA
+22.2% more expensive
Denver, CO
+20.0% more expensive
Chicago, IL
+16.7% more expensive
Austin, TX
+16.7% more expensive
Baltimore, MD
+16.7% more expensive
Stockton, CA
+16.7% more expensive
Aurora, CO
+16.7% more expensive
Hialeah, FL
+16.7% more expensive
Frisco, TX
+16.7% more expensive
Las Vegas, NV
+15.6% more expensive
Minneapolis, MN
+15.6% more expensive
Plano, TX
+15.6% more expensive
Chandler, AZ
+15.6% more expensive
Phoenix, AZ
+13.3% more expensive
Philadelphia, PA
+13.3% more expensive
Atlanta, GA
+13.3% more expensive
Tampa, FL
+13.3% more expensive
Henderson, NV
+13.3% more expensive
Reno, NV
+13.3% more expensive
Gilbert, AZ
+13.3% more expensive
Charleston, SC
+13.3% more expensive
Salt Lake City, UT
+13.3% more expensive
Orlando, FL
+12.2% more expensive
Wilmington, DE
+11.1% more expensive
Raleigh, NC
+11.1% more expensive
Virginia Beach, VA
+11.1% more expensive
St. Paul, MN
+11.1% more expensive
Chesapeake, VA
+11.1% more expensive
North Las Vegas, NV
+11.1% more expensive
Boise, ID
+11.1% more expensive
Fresno, CA
+11.1% more expensive
Worcester, MA
+11.1% more expensive
Dallas, TX
+10.0% more expensive
Nashville, TN
+10.0% more expensive
Colorado Springs, CO
+10.0% more expensive
Bakersfield, CA
+10.0% more expensive
St. Petersburg, FL
+10.0% more expensive
Madison, WI
+10.0% more expensive
Norfolk, VA
+8.9% more expensive
Jacksonville, FL
+7.8% more expensive
Charlotte, NC
+7.8% more expensive
Mesa, AZ
+7.8% more expensive
Houston, TX
+6.7% more expensive
Fort Worth, TX
+6.7% more expensive
Tucson, AZ
+6.7% more expensive
Glendale, AZ
+6.7% more expensive
Garland, TX
+6.7% more expensive
Spokane, WA
+6.7% more expensive
Pittsburgh, PA
+5.6% more expensive
Arlington, TX
+5.6% more expensive
Tallahassee, FL
+5.6% more expensive
Milwaukee, WI
+4.4% more expensive
Albuquerque, NM
+4.4% more expensive
New Orleans, LA
+4.4% more expensive
San Antonio, TX
+3.3% more expensive
Grand Rapids, MI
+3.3% more expensive
Columbus, OH
+2.2% more expensive
Detroit, MI
+2.2% more expensive
Cincinnati, OH
+2.2% more expensive
Kansas City, MO
+2.2% more expensive
Lexington, KY
+2.2% more expensive
Corpus Christi, TX
+2.2% more expensive
Buffalo, NY
+2.2% more expensive
Greensboro, NC
+2.2% more expensive
Knoxville, TN
+2.2% more expensive
El Paso, TX
+1.1% more expensive
Cleveland, OH
+1.1% more expensive
St. Louis, MO
+1.1% more expensive
Winston-Salem, NC
+1.1% more expensive
Cities CHEAPER than Indianapolis (9)
Memphis, TN
−1.1% cheaper
Oklahoma City, OK
−1.1% cheaper
Lincoln, NE
−1.1% cheaper
Birmingham, AL
−2.2% cheaper
Toledo, OH
−2.2% cheaper
Lubbock, TX
−2.2% cheaper
Wichita, KS
−4.4% cheaper
Fort Wayne, IN
−4.4% cheaper
Mobile, AL
−4.4% cheaper

What living in Indianapolis costs

At 0.90x national costs, Indianapolis is more expensive than 9 and cheaper than 88 of the 99 other metros here. In practical terms that is $1,050 a month for a one-bedroom and roughly $260,000 to buy.

The price-to-rent ratio here is roughly 21, which is high. Above about 20, renting and investing the down payment usually beats buying over a normal holding period — the purchase price is steep relative to what the same property earns as a rental.

Working and living here

Indianapolis is a metro of roughly 2.1M and growing steadily, running on logistics, life sciences/pharma, manufacturing. Larger employers include Eli Lilly and Company, Anthem/Elevance Health, Community Health Network.

Two tax details that change take-home here: Indianapolis levies a local income tax of about 1.02% on top of state and federal — roughly $1,020 a year on a $100,000 salary — and Indiana taxes income as well.

Getting around: Indianapolis is effectively car-dependent. Budget for a car — around $9,000 a year all-in once insurance, fuel, maintenance and parking are counted, a cost the index assumes but does not itemise.

Climate: January highs near 34°F/lows near 20°F; July highs near 85°F/lows near 66°F, humid.

Marion County levies a local income tax (about 1.02% combined) atop Indiana's flat 3.05% state rate; FedEx's second-largest global hub sits at Indianapolis International Airport.

Related tools

Paycheck calculator — take-home after federal, state and local tax. Salary calculator — pay by job and state. Compare against another metro.

Frequently Asked Questions

Is Indianapolis expensive to live in?▾
Relative to the US average, no — the cost index is 0.90x, above 9 and below 88 of the 99 other metros tracked here. A one-bedroom averages $1,050 a month and the median home $260,000.
What salary do you need to live comfortably in Indianapolis?▾
A common rule keeps rent under 30% of gross income, which at $1,050 a month implies about $42,000 a year for a one-bedroom, before accounting for the 1.02% local income tax. That is a floor rather than a comfortable figure — it leaves nothing for savings or the car this metro effectively requires.