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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Dollar for dollar, few states match Indiana's value. 3 out of 3 cities undercut the national cost index of 112. Leading the pack: Indianapolis at index 92, where median rent of $1,356/month saves renters $6,468/year versus the national median.
#1 Ranked: Indianapolis — cost index 92, rent $1,356/mo, income $62,995
3 of 3 cities come in below the national cost-of-living average of 112
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Indianapolis | 3.05% | 7% | 0.78% | $47,343 |
2Fort Wayne | 3.05% | 7% | 0.78% | $47,343 |
3Evansville | 3.05% | 7% | 0.78% | $47,343 |
Dollar for dollar, few states match Indiana's value. 3 out of 3 cities undercut the national cost index of 112. Leading the pack: Indianapolis at index 92, where median rent of $1,356/month saves renters $6,468/year versus the national median.
Dive into Indianapolis's numbers: cost index 92 (20 points below national average), rent $1,356/month, income $62,995, and a home price of $226,528. The city's cost profile isn't flat — Housing is the cheapest category at 80, while Healthcare runs 95. As a major city with 879,293 residents, amenities and job markets are robust.
What to do with this data: use the ranking as a shortlist, then dig into the city profiles for trend lines and category breakdowns. The difference between #1 and #5 is often smaller than the difference between "good on paper" and "actually fits my life." Compare your top picks with our calculator to see real take-home numbers.
| Rank | City | Combined Rate | Income Tax | Sales Tax | Cost Index | |
|---|---|---|---|---|---|---|
| 1 | Indianapolis | 10.8% | 3.05% | 7% | 92 | Details |
| 2 | Fort Wayne | 10.8% | 3.05% | 7% | 90 | Details |
| 3 | Evansville | 10.8% | 3.05% | 7% | 85 | Details |
879,293 residents · Indiana
Indianapolis earns its position at #1 through a combination that's hard to replicate. The 92 cost index sits 20 points below the national baseline, and the $62,995 median income means purchasing power here is amplified by the low cost base. Homes list at $226,528 — $240,842 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 80, while Healthcare trails at 95.
269,994 residents · Indiana
Fort Wayne earns its position at #2 through a combination that's hard to replicate. The 90 cost index sits 22 points below the national baseline, and the $60,293 — though some people might weigh that differently — median income means purchasing power here is amplified by the low cost base. Homes list at $238,593 — $228,777 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 74, while Healthcare trails at 92.
115,332 residents · Indiana
Here's Evansville by the numbers — and there's a lot to like (and a little to watch). Cost index: 85. Rent: $1,010/month. Income: $52,251/year. Home price: $194,790. Population: 115,332. The strongest category is Housing at 63; the most expensive is Healthcare at 88. Translate that rent to annual numbers, and residents are saving renters $10,620 per year vs. the national median. That adds up much faster than people realize.
We combine state income tax rate, combined sales tax (state + local), and effective property tax rate into a total tax burden score. Cities are ranked by this combined metric — lower is better for your wallet. All data is sourced from federal agencies and verified research institutions. Cost of living indices are normalized to 100 (national median) using Zillow rent as the primary signal, with sub-category adjustments derived from regional BLS price data. Rankings are updated monthly as new data is released.
Indianapolis ranks #1 in Indiana for this analysis with a cost index of 92 and median income of $62,995.
Our cost of living index uses real Zillow rent data as the foundation, indexed to 100 (national median). Sub-categories (housing, food, transport, utilities, healthcare) are derived from the overall index with regional adjustments. Data is updated monthly.
Indianapolis (ranked #1) has a cost index of 92 and rent of $1,356/mo, while Evansville (ranked #3) has a cost index of 85 and rent of $1,010/mo — a 7-point difference in cost of living.
City data is refreshed monthly from Census Bureau population estimates, Zillow rent and home price indices, BLS salary data, and Tax Foundation tax rates. Last updated: 2026.
The median 1-bedroom rent in Indianapolis is $1,356/month as of 2026, based on Zillow's Observed Rent Index. This is $539 below the national median of $1,895/month.
The median home price in Indianapolis is $226,528, which is 3.6× the local median income. It's on the edge of affordability for median-income households. The national median home price is $467,370.
Indiana has a 3.05% state income tax rate. Combined state and local sales tax averages 7%, and the effective property tax rate is 0.78%.
This ranking was generated using data current as of early 2026. Population and income data comes from the Census Bureau's American Community Survey (5-year estimates). Rent and home price data is from Zillow's monthly releases. Tax rates are from the Tax Foundation's 2025 edition. Rankings are refreshed monthly.