Updated · 2026 tax rules · Data: IRS, BLS, BEA, HUD · How we calculate

Cost of Living in Indianapolis, IN

Indianapolis-Carmel-Greenwood, IN — prices, rents and what jobs really pay here after taxes.

Price level
95.7
U.S. average = 100 · #152 of 387
Median wage
$49,340
all jobs · $3,367/mo take-home
1-bedroom rent
$1,242
HUD fair market rent
▲2.3%
Pay trend: The median for all workers in Indianapolis, IN rose from $48,210 (May 2024) to $49,340 (May 2025). That roughly kept pace with inflation (2.4%).

Salary comparison calculator

What would you need to earn in Indianapolis, IN to keep the same lifestyle — after taxes — as in another city?

Cost of living calculator

Uses BEA price levels plus 2026 federal and state taxes in each city's state.

Salary needed to keep your lifestyle
—

    How expensive is Indianapolis, IN?

    With a price level of 95.7 (U.S. average = 100), Indianapolis, IN is cheaper than average. In detail, housing costs are 11% below average; everyday goods are 6% below average; utilities are 14% below average; other services such as healthcare and dining cost about the same as the national average. The biggest difference from the national average is in utilities.

    Prices in Indianapolis, IN vs. the U.S. average

    CategoryIndex (U.S. = 100)Difference
    All items95.7−4.3%
    Housing88.9−11.1%
    Goods94.3−5.7%
    Utilities86.4−13.6%
    Other services99.1−0.9%

    Source: BEA Regional Price Parities, 2024.

    Rent in Indianapolis, IN

    UnitMonthly rentIncome needed (30% rule)
    Studio$1,102$44,080/yr
    1 bedroom$1,242$49,680/yr
    2 bedrooms$1,454$58,160/yr
    3 bedrooms$1,883$75,320/yr
    4 bedrooms$2,287$91,480/yr

    HUD Fair Market Rents, FY2026, population-weighted across the metro's counties.

    Salary needed to live in Indianapolis, IN

    To keep the same standard of living as in an average-priced U.S. city, you would need to earn roughly:

    Salary in an average U.S. cityEquivalent in Indianapolis, INTake-home here
    $40,000$38,300$31,854
    $60,000$57,400$46,637
    $80,000$76,600$60,488
    $100,000$95,700$73,361
    $150,000$143,500$105,145

    Scaled by the BEA price level (pre-tax). Take-home: single filer, Indiana 2026 taxes. For a tax-aware comparison with a specific city, use the calculator above.

    A monthly budget on the median wage

    A single worker earning Indianapolis, IN's median wage of $49,340 takes home about $3,367 a month. A typical one-bedroom rents for $1,242, which is 37% of take-home pay — above the 30% guideline that financial planners suggest. That leaves about $2,125 a month for everything else.

    Take-home pay in Indianapolis, IN

    Paycheck in Indianapolis, IN
    Deductions, kids & local tax

    2026 tax year. Federal brackets from IRS Rev. Proc. 2025-32.

    Your take-home pay
    $40,399
    per year · effective tax rate 18.1%
    $3,367Monthly
    $1,683Twice a month
    $1,554Every 2 weeks
    $19.42Hourly
    • Federal income tax$3,741
    • Social Security (6.2%)$3,059
    • Medicare (1.45%)$715
    • Indiana income tax$1,426
    • Take-home pay$40,399

    Marginal rate: 12% federal + 2.95% state

    Indianapolis (Marion County) residents also pay the County income tax: about $976 a year on the $49,340 median wage, leaving $39,422. Select “Indianapolis (Marion County)” under City income tax above to include it.

    Highest-paying jobs in Indianapolis, IN

    JobMedian salaryTake-homeReal value*
    Physicians, All Other$239,200+$244,588$255,589
    Computer and Information Systems Manager$155,230$112,816$117,890
    Financial Manager$146,620$107,185$112,006
    Sales Manager$137,410$101,162$105,711
    Nurse Practitioner$130,460$96,616$100,962
    General and Operations Manager$120,480$90,063$94,114
    Construction Manager$109,930$82,952$86,683
    Software Developer$106,870$80,890$84,528
    Medical and Health Services Manager$106,010$80,310$83,922
    Physical Therapist$103,770$78,800$82,345
    Personal Financial Advisor$102,640$78,039$81,549
    Education Administrators, Kindergarten through Secondary$102,400$77,877$81,380
    Computer Systems Analyst$101,890$77,533$81,020
    Health Specialties Teachers, Postsecondary$101,780$77,459$80,943
    Industrial Engineer$100,730$76,752$80,203
    Project Management Specialist$99,710$76,064$79,485
    Management Analyst$97,020$74,251$77,590
    First-Line Supervisor of Construction Trades and Extraction Workers$85,300$66,352$69,336
    Registered Nurse$84,230$65,631$68,582
    Police and Sheriff's Patrol Officer$83,110$64,876$67,793

    *In U.S.-average dollars after adjusting for local prices.

    Pay and living costs in Indiana cities

    Half of Indiana’s 3,201,220 workers earn less than $47,860 a year and half earn more; the middle 50% earn $36,500–$72,000 (BLS, May 2025). Prices vary a lot within the state: Kokomo, IN stretches a paycheck furthest, while Michigan City, IN is the costliest.

    Metro areaMedian payPrice level1-BR rentRent shareLeft after rent / moBuying power*
    Chicago, IL$54,720103.6$1,53441%$2,180$43,016
    Indianapolis, IN$49,34095.7$1,24237%$2,125$42,216
    Cincinnati, OH$50,17095.4$1,04330%$2,377$43,034
    Louisville, KY$48,37093.1$1,02631%$2,278$42,598
    Fort Wayne, IN$47,70092.6$90628%$2,355$42,269
    Evansville, IN$46,54091.5$86027%$2,326$41,770
    South Bend, IN$46,54092.9$1,07334%$2,113$41,172
    Elkhart, IN$48,07090.3$99230%$2,293$43,638
    Lafayette, IN$48,78093.4$99930%$2,331$42,776
    Bloomington, IN$47,66095.1$1,03632%$2,222$41,120
    Terre Haute, IN$44,87087.8$85428%$2,224$42,073
    Columbus, IN$48,47093.0$1,25738%$2,053$42,714
    Muncie, IN$44,11088.1$84528%$2,184$41,238
    Michigan City, IN$45,54091.7$95331%$2,168$40,856
    Kokomo, IN$48,98089.6$89027%$2,453$44,753

    *Yearly take-home pay (on each metro’s median wage, single filer) in U.S.-average dollars. Price level: BEA RPP 2024 (U.S. = 100). Rent: HUD FY2026 one-bedroom fair market rent.

    Indianapolis, IN vs. similar-size cities

    Metro areaPrice level1-BR rentMedian wageJobs
    Indianapolis, IN95.7$1,242$49,3401,105,170
    Columbus, OH95.5$1,179$51,3401,105,580
    Cincinnati, OH95.4$1,043$50,1701,101,030
    Nashville, TN96.3$1,530$50,3901,099,300
    Kansas City, MO92.5$1,193$50,8201,096,110
    Pittsburgh, PA94.7$1,058$49,6501,114,490
    San Antonio, TX94.7$1,171$47,0101,126,880

    Frequently asked questions

    Is Indianapolis, IN expensive to live in?

    According to the Bureau of Economic Analysis, overall prices in the Indianapolis-Carmel-Greenwood, IN metro area are 95.7% of the U.S. average, with housing at 88.9%. It is the #152 most expensive of 387 metro areas we track.

    What salary do you need to live in Indianapolis, IN?

    To match the buying power of a $60,000 salary in an average-priced U.S. city you would need about $57,418 in Indianapolis, IN (before tax differences). The median wage across all jobs here is $49,340.

    Can you afford Indianapolis, IN on the median wage?

    A single worker on the $49,340 median wage takes home about $3,367 a month after 2026 taxes; a one-bedroom at $1,242 would take 37% of that.

    How much is rent in Indianapolis, IN?

    HUD’s FY2026 fair market rents for Indianapolis, IN are $1,102 for a studio, $1,242 for one bedroom, $1,454 for two bedrooms and $1,883 for three bedrooms, including utilities.

    Top salaries by field in Indianapolis, IN

    Management Occupations

    Business and Financial Operations Occupations

    Computer and Mathematical Occupations

    Architecture and Engineering Occupations

    Community and Social Service Occupations

    Legal Occupations

    Educational Instruction and Library Occupations

    Healthcare Practitioners and Technical Occupations

    Healthcare Support Occupations

    Protective Service Occupations

    Food Preparation and Serving Related Occupations

    Building and Grounds Cleaning and Maintenance Occupations

    Personal Care and Service Occupations

    Sales and Related Occupations

    Office and Administrative Support Occupations

    Construction and Extraction Occupations

    Installation, Maintenance, and Repair Occupations

    Production Occupations

    Transportation and Material Moving Occupations

    Other cities in Indiana

    Indiana paycheck calculator →