Indianapolis cost of living index

In the event that the cost of living data was unavailable for this city, estimates based upon nearby cities were used. Each cost of living index is based on a national average of 100. If the amount is below 100, it is lower than the national average. If the amount is above 100, it is higher than the national average.
IndexIndianapolisIndianaNational
Cost of living index8888100
IndexIndianapolisIndianaNational
Goods & Services index9895100
Groceries index9492100
Health care index9995100
Housing index7273100
Transportation index9293100
Utilities index9193100
A general summary of the cost of living index in Indianapolis, IN is shown above. Compared to the state average of Indiana the cost of living index in Indianapolis, IN is 88, which is 1% higher than the average in Indiana and compared to the national average it is 12% lower than. The cost of living index is made up of several categories. These are transportation at 9%, utilities at 10%, goods and services at 33%, housing at 30%, groceries at 13%, and health care at 5%. The bulk of the cost of living index comes from the categories of goods and services and housing. If you look at everyday goods and services they can be a good indicator in a certain city of the general costs of goods there. In Indianapolis, IN goods and services come in at 3% higher than the average in Indiana and are 2% lower than compared to the nationwide average.

Did you know?

  • The cost of living in Indianapolis is 1% higher than the Indiana average.
  • The cost of living in Indianapolis is 12% lower than the national average.
  • The cost of housing in Indianapolis is 28% lower than the national average.
  • Indiana general sales tax is 37% higher than the national average.
  • Indiana state income tax is 48% higher than the national average.

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Salary Calculator

This is how much you would need to earn in
Price difference in compared to
Cost of living index
Goods & Services index
Groceries index
Health care index
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Transportation index
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The salary calculator is used in order to provide a comparison of your current salary in Indianapolis, IN to another city of your choice. The calculator will inform you of what your salary needs to be in any specific city in order for you to maintain your living standard based on what the city’s cost of living is. As an example, if you are seeking to move to a city that has a higher cost of living compared to Indianapolis, IN, you would have to earn a higher income to maintain a standard of living that is similar. To get started with the Indianapolis, IN salary calculator, input the new city’s name and then move the slider to indicate your current income. The salary calculator will now process the numbers and show you whether you need to earn more or less in the chosen city. A comprehensive breakdown of the cost of living will also be shown.

Median Income & Debt-To-Income Ratio

Median IncomePer YearPer MonthMax Budget (28% DTI)Max Budget (36% DTI)
Owners$59,767$4,981$1,394$1,793
Renters$27,275$2,273$636$818
If you want to find a good determining factor for the cost of living and the general affordability of housing in Indianapolis, IN, all you must look at is the percentage of monthly income that should be spent on housing expenses, otherwise known as the debt-to-income ratio (DTI). Generally speaking, no more than 28 percent of your total gross income should be spent on your housing expenses and not more than 36 percent of your gross income on total expenses, including debts. In Indianapolis, IN, the median monthly income is $59,767 for those who own their own homes. Under the standard rule, that income level would allow for $1,394 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $27,275, per the median income in the area. That would allow for renters to spend up to $636 on monthly rental expenses.

Indiana Sales Tax

StateGeneral Sales TaxWith Max Surtax
Indiana7%7%

Indiana Income Tax

StateIncome Tax (Low)Income Tax (High)
Indiana3.3%3.3%
The Indiana sales tax and Indiana income tax rates should definitely be considered when determining the overall cost of living in Indianapolis, IN. Sales taxes are taxes that are imposed onto goods and services sold. Sales taxes do vary by state and can range from no tax at all to upwards of 7%. The Indiana sales tax is 7% and the maximum surtax is 7%. Income tax is the tax imposed on income by the government. The income tax rates will vary by state and will also increase or decrease depending on the corresponding tax bracket. State income tax rates can range from anywhere from no tax at all to more than 9%. The Indiana income tax rates range from 3.3% to 3.3%.

Goods & Services

ItemIndianapolisNational avg.Difference
Haircut $19.60$14.5934.3%
Beauty Salon $29.80$34.6814.1%
Toothpaste $2.34$2.475.4%
Shampoo $1.03$1.020.8%
Movie $10.53$9.876.7%
Bowling $4.30$4.392.1%

Groceries

ItemIndianapolisNational avg.Difference
Ground Beef $4.34$4.483.1%
Fried Chicken $1.18$1.4619.4%
Milk $1.96$2.3616.8%
Potatoes $2.86$3.066.6%
Pizza $8.99$9.242.7%
Beer $7.98$8.637.6%

Health Care

ItemIndianapolisNational avg.Difference
Optometrist $84.30$99.7815.5%
Doctor $96.50$105.038.1%
Dentist $87.80$88.701.0%
Ibuprofen $8.69$9.417.7%
Lipitor $335.04$298.5012.2%

Housing

ItemIndianapolisNational avg.Difference
Home Price $117,200.00$175,700.0033.3%
Avg. Mortgage Payment $821.91$1,081.0324.0%
Apartment Rent $784.00$920.0014.8%

Transportation

ItemIndianapolisNational avg.Difference
Gasoline $2.01$2.093.9%
Tire Balancing $36.41$45.2919.6%

Utilities

ItemIndianapolisNational avg.Difference
All Electricity$156.80$170.808.2%
Phone $25.68$28.269.1%
Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

Nearby cities with low cost of living

City, StatePopulationCost of Living IndexNational Avg.
Beech Grove, IN14,30185-15%
Speedway, IN12,01288-12%
Mooresville, IN9,45989-11%
Southport, IN1,77889-11%
Lawrence, IN46,79689-11%
Indianapolis, IN835,09788-12%

Cities with similar population

City, StatePopulationCost of Living IndexNational Avg.
Jacksonville, FL837,53398-2%
San Francisco, CA829,07218989%
Columbus, OH811,94389-11%
Austin, TX864,2181077%
Fort Worth, TX778,57396-4%
Indianapolis, IN835,09788-12%
Source: The Indianapolis, IN cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for the fourth quarter of 2015.