State comparison
Arizona vs Indiana: which state is better to live in?
Indiana costs a median household about $410 a year less in state and local taxes than Arizona, mostly because property tax on a median home runs $1,704 a year against $2,142 in Arizona.
Arizona
Moderate tax burden · COL index 102
Wins 4 categories
Indiana
Moderate tax burden · COL index 87
Wins 10 categories
Taxes: Arizona vs Indiana
Arizona has a flat 2.5% income tax, which works out to 2.5% on a median income of $74,580, or $1,865 a year. Indiana has a flat 3.05% income tax, which works out to 3.0% on a median income of $74,580, or $2,200 a year. Arizona wins on income tax at 2026 rates.
Property tax is 0.51% of home value a year in Arizona and 0.71% in Indiana (Tax Foundation, 2023); on each state's median home that is $2,142 against $1,704, so Arizona has the lower rate.
Combined state and local sales tax averages 8.37% in Arizona and 7.00% in Indiana; Indiana is lower.
Add it up for a household earning $74,580 (the 2022 national median) and owning the median home: $5,879 a year in Arizona, $5,470 in Indiana. Indiana is cheaper on total state and local tax.
Housing and cost of living
Arizona's cost of living index is 102 and Indiana's is 87, where 100 is the national average; Indiana is about 17% cheaper day to day.
The median home costs $420K in Arizona and $240K in Indiana (Zillow, 2024), a $180K gap in Indiana's favor. A two-bedroom rents for about $1,600 a month in Arizona and $1,100 in Indiana.
Home insurance averages $1,850 a year in Arizona and $1,500 in Indiana, so Indiana is cheaper to insure.
Safety
Violent crime runs 474 incidents per 100,000 residents in Arizona and 396 in Indiana (FBI Crime Data Explorer, 2023); Indiana is the safer state by that measure, with a rate 20% lower. Property crime is 2,624 per 100,000 in Arizona against 1,767 in Indiana, again favoring Indiana.
Health
Life expectancy is 76.3 years in Arizona and 75.5 in Indiana (County Health Rankings, 2024), a 0.8-year edge for Arizona. The Commonwealth Fund's 2023 scorecard ranks Arizona's health system 34th of 50 and Indiana's 42nd, so Arizona scores better on care.
10.8% of Arizona residents have no health insurance against 8.9% in Indiana, which favors Indiana. Both states expanded Medicaid.
Schools
Education Week's 2023 Quality Counts report ranks Arizona's K-12 schools 45th in the country and Indiana's 27th, 18 places apart in Indiana's favor. Both states run school-choice voucher programs.
Laws and politics
In the 2024 presidential election Arizona went to Trump by 5 points and Indiana went to Trump by 19 points.
Arizona has permitless carry and a Giffords gun-law grade of F; Indiana has permitless carry and a grade of F.
Abortion is banned with narrow exceptions in both states, and marijuana is legal for adults in Arizona and illegal in Indiana as of 2026. The minimum wage is $14.35 an hour in Arizona and $7.25 in Indiana.
Climate and risk
Natural disaster risk is moderate in Arizona (wildfire, extreme-heat, drought) and moderate in Indiana (tornado, flood). Annual average air quality index is 46 in Arizona and 48 in Indiana (under 50 is good), favoring Arizona.
Tax figures use a household earning the national median income and owning each state's median home, at tax year 2026 rates, last checked against state sources on 2026-09-14. The table below has every number.
Taxes
Housing & Cost of Living
Crime & Safety
Healthcare
Education
Childcare
Utilities & Daily Costs
Social Policy
Category wins
4
Arizona
10
Indiana
Run the full slider tool to score these states against your specific income, home value, retirement, and lifestyle priorities.
Score For My Profile →Questions people ask
Is Arizona or Indiana better to live in?
Indiana wins more of the measures that decide a move. Indiana on taxes ($5,470 a year for a median household against $5,879); Indiana on everyday costs (index 87 against 102); Indiana on safety (396 violent crimes per 100,000 against 474); Indiana on schools (ranked 27th against 45th).
Which is cheaper, Arizona or Indiana?
Indiana is cheaper day to day: cost of living index 87 against 102. The median home is $420K in Arizona and $240K in Indiana (2024). On state and local taxes Indiana saves a median household about $410 a year.
Does Arizona or Indiana have lower taxes?
Indiana. A household earning $74,580 pays about $5,879 a year in Arizona ($1,865 income tax, $2,142 property tax on the median home and $1,873 in sales tax) and $5,470 in Indiana ($2,200 income tax, $1,704 property tax on the median home and $1,566 in sales tax), at 2026 rates.
Which is safer, Arizona or Indiana?
Indiana, on the FBI's 2023 figures. Violent crime is 474 per 100,000 residents in Arizona and 396 in Indiana; property crime is 2,624 against 1,767.
Which has better schools, Arizona or Indiana?
Indiana. Education Week's 2023 Quality Counts report ranks Arizona 45th of 50 for K-12 and Indiana 27th.
Is Arizona or Indiana better for retirees?
Both treat retirement income about the same. Arizona does not tax Social Security, partly exempts pensions and has no estate or inheritance tax; Indiana does not tax Social Security, partly exempts pensions and has no estate or inheritance tax. Property tax on a median home is $2,142 a year in Arizona and $1,704 in Indiana.