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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
The numbers are clear: 3 of 3 cities in Indiana beat the national cost-of-living benchmark of 111. Indianapolis stands out at 79 on the index, with rent of $1,356/month and household income of $62,995. Assembled from 2026 Census, Zillow, and BLS data.
The numbers are clear: 3 of 3 cities in Indiana beat the national cost-of-living benchmark of 111. Indianapolis stands out at 79 on the index, with rent of $1,356/month and household income of $62,995. Assembled from 2026 Census, Zillow, and BLS data.
Tax burden isn't just income tax. We combine three layers: state income tax (3.05% in Indianapolis), combined state+local sales tax (7%), and effective property tax (0.78%). At 3.05% state income tax, the real differentiator becomes sales and property tax rates. On a $75,000 — whether that matters depends on your situation — salary, the estimated take-home in #1 Indianapolis is $55,422/year.
Dive into Indianapolis's numbers: cost index 79 (32 points below national average), rent $1,356/month, income $62,995, and a home price of $226,528. And depending on your situation, the city's cost profile isn't flat — Housing is the cheapest category at 79, while Healthcare runs 96. As a major city with 879,293 residents, amenities and job markets are robust (and that gap widens if you factor in state taxes).
This looks affordable — until you factor in healthcare. In Indianapolis, the healthcare index sits at 96 — not a dealbreaker, but worth knowing about.
Bottom line: Indianapolis leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. Click into any city below to see the full detail page with 12-month trend charts, profession-specific salary data, and a breakdown of all five cost categories. If you're seriously considering a move, use our salary calculator to model your specific income against these numbers.
#1 Ranked: Indianapolis — cost index 79, rent $1,356/mo, income $62,995
3 of 3 cities come in below the national cost-of-living average of 111
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
879,293 residents · Indiana
Indianapolis earns its position at #1 through a combination that's hard to replicate. The 79 cost index sits 32 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 79, while Healthcare trails at 96 (though the trend is moving in the right direction).
269,994 residents · Indiana
What does daily life actually cost in Fort Wayne? Start with the 23% rent-to-income ratio — that's the kind of margin that lets people build savings. On the category level, Housing (index 68) is where the real savings show up, while Healthcare (index 94) is the line item most likely to surprise newcomers. Income at $60,293 and homes at $238,593 round out a profile that ranks #2 for clear reasons.
115,332 residents · Indiana
Evansville earns its position at #3 through a combination that's hard to replicate. The 59 cost index sits 52 points below the national baseline, and the $52,251 — worth pausing on — median income means purchasing power here is amplified by the low cost base. Homes list at $194,790 — $272,580 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 59, while Healthcare trails at 92.
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | Indianapolis | 79 | $1,356 | Details |
| 2 | Fort Wayne | 68 | $1,160 | Details |
| 3 | Evansville | 59 | $1,010 | Details |
| 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 |
Total tax burden = state income tax rate + combined sales tax rate + effective property tax rate. We rank cities from lowest combined burden to highest. Keep in mind property tax and sales tax are local-level, so two cities in the same state can differ meaningfully. 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 79 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 79 and rent of $1,356/mo, while Evansville (ranked #3) has a cost index of 59 and rent of $1,010/mo — a 20-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.