Indiana's cost of living index is 89.7 — 10.3% below the US average of 100 (MERIC (C2ER index), Second Quarter 2026). The index averages the cities that take part in the survey, so it describes those areas rather than the whole state. Compare purchasing power and equivalent salaries across states.
CoL Index
89.7
US avg = 100 · MERIC (C2ER index), Second Quarter 2026
vs. National Avg
-10.3%
Less expensive
Median Income
$71,959
Median household · Census ACS 2024 1-year
Equiv. at US Avg
$80,222
Same purchasing power
| CoL Index | 89.7 | MERIC (C2ER index), Second Quarter 2026 — composite, US avg = 100 |
| vs. National | 10.3% | Below average cost |
| Median Household Income | $71,959 | Indiana median — Census ACS 2024 1-year |
| National Purchasing Power | $80,222 | Equivalent $ at US avg CoL |
| Overall Category | Low | CalcHub band of the index: Low < 90 ≤ Moderate < 100 ≤ High < 115 ≤ Very High |
| Population | 6,973,333 | Census Bureau estimate, July 1, 2025 |
With a cost of living index of 89.7, Indiana is 10% below the national average. Lower costs in Indiana mean your dollar goes further. A salary of $71,959 in Indiana provides the equivalent purchasing power of $80,222 in a state at the national average.
Housing is typically the largest driver of cost of living differences between states.Indiana's typical home value of $260,100 is well below the U.S. typical value of $368,700 (Zillow Home Value Index, August 2026). Other factors include state income tax (2.95% top rate in Indiana), sales tax (7% state rate), and property taxes (0.74% effective rate).
