| Index | Indianapolis | Indiana | National |
| Cost of living | 93 | 89 | 100 |
| Groceries | 97 | 97 | 100 |
| Health care | 95 | 97 | 100 |
| Housing | 85 | 72 | 100 |
| Transportation | 99 | 96 | 100 |
| Utilities | 99 | 96 | 100 |
| Lifestyle & Entertainment | 94 | 95 | 100 |
| Household Items | 102 | 98 | 100 |
| Education & Childcare | 95 | 94 | 100 |
Are you thinking about relocating, but curious about the potential cost of living in Indianapolis? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Indianapolis stands at 93, making it 7% lower than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.
The cost of living in Indianapolis is about average when compared to all other cities across the nation. You can expect that everyday items like food, household expenses and utility bills will be no more expensive than any other average city. Residents can anticipate living expenses that remain in line with the national average, ensuring a manageable financial burden, making it an attractive choice for those seeking affordability without the constraints of higher everyday expenditures.
Nobody knows their city better than the people who actually live there. So, we asked 29 local residents how they would rate the cost of living in Indianapolis and this is how they responded. 62% of people said that the cost of living was affordable, with prices decreasing, while 38% of people said that the cost of living was very expensive and prices continue to rise.
Wondering if Indianapolis is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Indianapolis, for example, the median home price is 19.6% lower than what folks pay nationally, and monthly rent is 5.2% lower than the usual rates. Plus, income levels matter too, with Indianapolis boasting a median household income of $75,736, which is 6.9% lower than the national average.
Taxes: Locations with elevated tax rates, encompassing both sales and income taxes, can be a factor in driving up the cost of living. When you're paying more in taxes for everyday household expenses, it naturally translates into higher expenses. Similarly, a higher income tax rate can also contribute to an overall higher cost of living. In Indianapolis, the standard sales tax rate starts at 7%, and the income tax rates commence at 3.15%.
Groceries: Grocery expenditures have undergone notable escalation over the last 2-3 years. In some markets, the cost of food products has surged by more than 20%, while others have experienced only modest increments. These fluctuations in food costs can have a significant impact on the overall cost of living in any region. In Indianapolis, the groceries index registers 3.4% lower than the national average.
Housing: When everyone's vying for homes in popular areas, it drives up property prices and rents, making the overall cost of living surge. On the flip side, in less sought-after locales, where housing demand is low, prices tend to dip, resulting in a more economical cost of living. In Indianapolis, the housing index comes in at 15.3% lower than the national average.
The Indianapolis cost of living data above is designed around a U.S. average baseline of 100, allowing for easy comparisons of relative living costs. Housing incorporates U.S. Census home price and rental data, while all other figures are AI-assisted estimates that account for regional price trends, climate, transportation dynamics, and common everyday expenses. These values are best used as directional city-to-city comparisons.
| Cost of living index | |
| Groceries index | |
| Health care index | |
| Housing index | |
| Transportation index | |
| Utilities index | |
| Lifestyle index | |
| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $105,843 | $8,820 | $2,470 | $3,176 |
| Renters | $51,111 | $4,259 | $1,193 | $1,533 |
| State | General Sales Tax | With Max Surtax |
| Indiana | 7% | 7% |
| State | Income Tax (Low) | Income Tax (High) |
| Indiana | 3.15% | 3.15% |
| City | Population | Cost of Living Index | National Avg. |
| Beech Grove, IN | 15,679 | 88 | 11.7% |
| New Whiteland, IN | 6,330 | 89 | 11.0% |
| Clermont, IN | 1,413 | 90 | 9.8% |
| Speedway, IN | 12,709 | 92 | 8.1% |
| Warren Park, IN | 1,526 | 93 | 7.2% |
| Indianapolis, IN | 899,521 | 93 | 6.6% |
| City | Population | Cost of Living Index | National Avg. |
| San Francisco, CA | 898,133 | 245 | 145.5% |
| Charlotte, NC | 903,228 | 110 | 10.2% |
| Columbus, OH | 914,920 | 97 | 3.5% |
| Fort Worth, TX | 926,371 | 103 | 2.9% |
| Jacksonville, FL | 934,752 | 108 | 8.0% |
| Indianapolis, IN | 899,521 | 93 | 6.6% |
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