Cost of Living in Indiana (IN)
Compare costs across 5 Indiana cities. From home services to salaries, see how IN stacks up against the national average.
5
Cities
84
Avg Cost Index
$39K
Avg Income
Direct Answer
Indiana's average cost index is 84, which is below the national baseline of 100. Terre Haute is the most affordable tracked city in IN at index 78, while Indianapolis is the most expensive at index 90.
The gap between the cheapest and most expensive tracked cities is 12 index points, so state-level averages should be used as a map, not a final budget.
State cost overviewBLS, Census, HUD inputsLast verified May 2026
Indiana Highlights: Most affordable city: Terre Haute (index 78). Most expensive: Indianapolis (index 90). The gap between cheapest and most expensive is 12 index points.
What Drives the Statewide Cost Picture?
Average index
84/100
Indiana is below the national cost baseline across tracked cities.
Cheapest city
Terre Haute
Terre Haute has a cost index of 78.
Most expensive
Indianapolis
Indianapolis has a cost index of 90.
Income average
$39K
Average median household income across 5 tracked IN cities.
Cheapest and Most Expensive Cities in Indiana
| City | Population | Cost Index | Median Income | Tier |
|---|---|---|---|---|
| Indianapolis | 888K | 90 | $49K | large |
| Evansville | 117K | 82 | $40K | mid |
| South Bend | 103K | 80 | $38K | mid |
| Bloomington | 79K | 88 | $33K | small |
| Terre Haute | 58K | 78 | $32K | small |
Indiana State Taxes (2026)
Headline tax rates that affect your real take-home pay and total cost of living in Indiana.
State Income Tax
3.05%
flat system
Combined Sales Tax
7%
7% state + 0% avg local
Property Tax (Effective)
0.84%
~$2,520/yr on a $300K home
Income tax: Indiana uses a flat income tax at 3.05%. No state estate tax. Estimate your take-home pay
State Planning Checklist
- Start with Terre Haute if the priority is lowest recurring cost inside Indiana.
- Compare Indianapolis against salary and tax advantages before assuming the higher-cost city is worse.
- Use city pages for rent, salary, insurance, and local service costs before making a relocation decision.