Cost of Living for Indiana (2026)
Indiana (IN) Key Facts
Cost of Living Index
90
National Average Index
100
Median Household Income
$58,000
Approximate Median Rent (1 B R)
$900/month
State Income Tax Rate
3.05%
How This Calculator Works in Indiana
This cost of living calculator helps you compare salaries between Indiana and other states or cities by adjusting for purchasing power differences. Enter a salary and a target location to see what equivalent income you would need. It uses Indiana's cost of living index of 90 relative to the national average of 100 to provide an accurate comparison.
Indiana Overview
Indiana has a cost of living index of 90, where 100 represents the national average. Indiana has one of the lowest costs of living in the Midwest. Indianapolis is the most expensive area but remains well below the national average. Rural Indiana is extremely affordable. The median household income is $58,000, which has a purchasing power equivalent of approximately $64,444 in an average-cost location.
How Indiana Compares
Indiana's cost of living index of 90 compares to Illinois's 95 and Ohio's 90. Residents in Indiana benefit from lower costs compared to the national average, meaning salaries stretch further here. The most affordable states like Mississippi (84) cost roughly 7% less than Indiana, while the most expensive like Hawaii (192) cost 113% more.
| State | Top Rate | Notes |
|---|---|---|
| Illinois | COL Index: 95 | Illinois has a cost of living index of 95 and a median household income of $72,000. It is more expensive than Indiana. |
| Ohio | COL Index: 90 | Ohio has a cost of living index of 90 and a median household income of $58,000. It has a similar cost of living to Indiana. |
| Michigan | COL Index: 90 | Michigan has a cost of living index of 90 and a median household income of $60,000. It has a similar cost of living to Indiana. |
The national average cost of living index is 100. Indiana's index of 90 is below the national average. States like Mississippi (84) and West Virginia (84) have the lowest cost of living, while Hawaii (192) and DC (148) have the highest. Indiana's median household income of $58,000 should be evaluated alongside its cost of living to understand real purchasing power.
Tips for Indiana Residents
- 1Indiana has one of the lowest costs of living in the Midwest. Indianapolis is the most expensive area but remains well below the national average. Rural Indiana is extremely affordable.
- 2Indiana's median household income of $58,000 has a real purchasing power of about $64,444 when adjusted to the national average. Compare this figure, not the raw salary, when evaluating cross-state moves or job offers.
- 3Indiana's top state income tax rate of 3.05% further reduces purchasing power beyond what the cost of living index alone shows. Factor in taxes when making state-to-state comparisons.
- 4When comparing job offers between states, adjust salaries by the cost of living index. A $60,000 salary in a state with an index of 90 provides more purchasing power than $70,000 in a state with an index above 105.
- 5Look beyond the state average — costs can vary dramatically within Indiana between metro areas, suburbs, and rural communities. Research the specific city or county where you would live.