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Indiana cost of living & income (2026)

Quick answer: Indiana has a cost-of-living index of 88.3 (100 = national baseline), an illustrative estimated annual cost of living of about $44,150, median household income of $71,959, combined average sales tax about 7.00%, and regular gas about $3.356/gal in the June 2026 AAA snapshot used on the hub.

COL index88.3100 = US baseline
Est. annual COL$44,150
Median HH income$71,959
Sales tax (comb.)7.00%
Gas (87 octane)$3.356/galJune 2026 AAA
Largest cityIndianapolis (879,293)

Taxes & economy

Income tax: Flat 2.95%

Sales tax: 7% state (combined avg. ~7.00%)

Major industries: Manufacturing (autos, pharma), agriculture, logistics, steel

Climate snapshot

Summer high ~85°F (July) · Winter low ~20°F (January)

Culture (context)

Indianapolis Motor Speedway Museum / Eiteljorg Museum

Open the interactive 50-state map & table — sort, filter, and use the dual ranker on the full explorer.

What this means for you

What this means for you: a basket priced at 100 on the national baseline is indexed at 88.3 in Indiana. A salary that buys that basket at the baseline would need about 88.3% of that salary to buy the same basket here. That is index math from this snapshot, not a tax-equalized offer and not your rent.

Compare a salary: Indiana vs Texas on the explorer.

How to read this page

  1. Read the quick answer for Indiana's cost-of-living index, estimated annual cost, median income, sales tax, and gas price.
  2. Open the 50-state explorer and compare Indiana with another state. The salary line multiplies pay by the other index divided by this index.
  3. Use the mortgage, rent, and paycheck calculators with your own numbers. This page does not compute a tax return.

Related calculators: mortgage · rent · paycheck.

Related states

Similar cost-of-living index in this dataset:

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FAQ

What is Indiana's cost of living index?

Indiana's cost-of-living index is 88.3 (national baseline 100) in this 2026 classroom snapshot.

What is the estimated annual cost of living in Indiana?

The explorer lists an illustrative estimated annual cost of living of about $44,150 for Indiana.

What is median household income in Indiana?

Median household income in Indiana is $71,959 in this dataset.

What is the combined average sales tax rate in Indiana?

The combined average sales tax rate shown for Indiana is 7.00%. State and local rules vary; see the Tax Foundation citation on the hub.

Does Indiana have a state income tax?

State income tax in Indiana: Flat 2.95%.

What was regular gas in Indiana in this snapshot?

87-octane gas is listed at $3.356 per gallon (AAA, June 2026) in the explorer data.

How should a household read Indiana's cost-of-living index?

The index is 88.3 against a US baseline of 100. A salary that buys a basket at the baseline would need about 88.3% of that salary to buy the same basket in Indiana in this snapshot. It is not a tax bill, a rent quote, or financial advice.

Sources: Tax Foundation (sales tax), BEA / ACS (income & COL), AAA gas (June 20, 2026). Educational, not financial, tax, or relocation advice.