Living in Indiana: Income, Housing, Taxes & Cost of Living (2026)
By Wealthvieu
·
Updated
Table of Contents
Indiana at a Glance
| Metric |
Value |
National Rank |
| Population (2024) |
6.9 million |
17th |
| Median household income |
$65,894 |
36th |
| Median home price |
$240,000 |
Well below average |
| Cost of living index |
89 |
10th lowest |
| State income tax |
3.05% flat (+ county tax) |
Low |
| Sales tax |
7% |
Average |
| Property tax (effective rate) |
0.81% |
Below average |
Income and Housing
| City/Metro Area |
Median Income |
Median Home Price |
Median Rent (2BR) |
Affordability |
| Indianapolis |
$62,400 |
$260,000 |
$1,150 |
Excellent |
| Carmel/Fishers |
$110,000 |
$420,000 |
$1,600 |
Good |
| Fort Wayne |
$56,200 |
$210,000 |
$950 |
Excellent |
| Evansville |
$54,400 |
$185,000 |
$850 |
Excellent |
| South Bend |
$48,800 |
$175,000 |
$900 |
Good |
| Bloomington |
$44,200 |
$250,000 |
$1,050 |
Fair |
| Lafayette |
$56,800 |
$225,000 |
$1,000 |
Good |
| Terre Haute |
$42,400 |
$130,000 |
$750 |
Good |
Taxes
Indiana has a flat 3.05% state rate plus county income tax (0.5-2.84% depending on county — most are 1-2%).
| Gross Income |
Federal |
IN Income Tax (3.05% + 1.5% county) |
FICA |
Property ($240K) |
Total Rate |
| $75,000 |
$8,115 |
$3,413 |
$5,738 |
$1,944 |
25.6% |
| $100,000 |
$13,615 |
$4,550 |
$7,650 |
$1,944 |
27.8% |
Indiana Pros and Cons
| Financial Pros |
Financial Cons |
| Very affordable (89 index) |
Below-average incomes (36th) |
| Low flat income tax (3.05%) |
County income tax adds 1-2.8% |
| Affordable housing ($240K median) |
Limited high-paying industries outside Indy |
| Indianapolis is an underrated major city |
Cold winters, heating costs |
| Strong manufacturing sector |
Brain drain to coastal cities |
| Moderate property taxes |
Not as exciting for young professionals |
Related: Cost of Living by State | State Income Tax Rates | Property Tax by State
