Indiana, known as the "Hoosier State", is one of the most affordable Midwest states with very low housing costs. Here is everything you need to know about the cost of living in the Hoosier State — from housing and groceries to taxes, utilities, childcare, and what salary you actually need.
Here is what a typical month costs in Indiana for a single person earning the median income of $58,600/year:
Each category shows how Indiana compares to the national average. Green means cheaper, yellow means similar, orange/red means more expensive.
Adjust your salary to see a detailed monthly budget breakdown for living in Indiana.
Select a state to see how much salary you would need there to maintain the same lifestyle you have in Indiana.
The most popular cities for residents and newcomers in Indiana:
Housing is the single biggest expense in Indiana, as it is everywhere. The median home price in Indiana is $235,000, and the median rent for a one-bedroom apartment is $900/month. With a housing cost index of 72, Indiana housing is 28% cheaper than the national average.
Housing in Indiana is a genuine advantage. The low cost of housing frees up income for savings, investments, and discretionary spending that residents of expensive states simply cannot afford.
Indiana has a state income tax rate of 3.15%. On the median household income of $58,600, you will pay approximately $1,846/year in state income tax ($154/month). This is below the national average — a tax advantage for Indiana residents.
The average single person in Indiana spends approximately $380/month on groceries. A family of four can expect to spend $950-$1,140/month. The food cost index of 95 means groceries in Indiana are 5% below the national average.
Gas prices in Indiana average $3.1/gallon. For the average commuter driving 15,000 miles/year at 25 MPG, that is roughly $1,860/year in fuel costs.
Indiana healthcare costs are 4% below the national average (index: 96). The average annual healthcare cost per person in Indiana is approximately $5,760 including premiums and out-of-pocket expenses. Employer-sponsored health insurance covers the majority of working adults.
Infant daycare in Indiana averages $850/month ($10,200/year). This is below the national average, making Indiana more family-friendly from a financial perspective. Many families in Indiana find that one parent staying home is more cost-effective when two or more children need daycare.
Indiana is an excellent choice for anyone prioritizing affordability. Your dollar stretches 10% further here than the national average. The trade-off may include fewer big-city amenities in some areas, but cities like Indianapolis and Fort Wayne offer a good balance of affordability and quality of life.
See all Indiana financial calculators:
Indiana (IN) has a cost of living index of 90, meaning it is 10% cheaper than the US average. Housing is the biggest factor with an index of 72. The median rent is $900/month and the median home price is $235,000. Indiana ranks #11 out of 50 states for affordability (1 = cheapest).
For a single person, a comfortable salary in Indiana is approximately $76,180/year ($6,348/month). For a family of four, aim for $128,920/year. This covers housing at 30% of income, groceries ($380/mo), transportation, healthcare, and a 15% savings rate. The median household income in Indiana is $58,600.
The median rent for a one-bedroom apartment in Indiana is approximately $900/month. A two-bedroom averages $1,215/month. Rent varies significantly by city: Indianapolis, Fort Wayne, Evansville are the most popular metro areas. Housing in Indiana is affordable compared to the national average.
Indiana is an excellent choice for affordability. With a cost of living 10% below the national average and median rent of just $900/month, your money goes significantly further here. Top cities include Indianapolis, Fort Wayne, Evansville.
The most affordable areas in Indiana are typically smaller cities and rural areas away from the major metros. Within Indiana, costs can vary 20-40% between the most expensive city (Indianapolis metro) and more affordable areas. South Bend and Carmel tend to offer lower costs while still providing good amenities and job opportunities.
The average monthly grocery bill in Indiana for a single person is approximately $380 ($950 for a family of four). Indiana food costs are 5% below the national average. Shopping at Walmart, Aldi, and local discount stores can reduce this by 15-25%.
The average monthly electric bill in Indiana is approximately $130. Total utilities (electric, gas, water, internet) average $286/month. Indiana utilities are 3% below the national average. Utility costs are manageable for most households.
Indiana has a state income tax rate of 3.15%. On the median household income of $58,600, that is approximately $1,846/year in state income tax. This is below the national average — a tax advantage.