State comparison
California vs Indiana: which state is better to live in?
Indiana costs a median household about $5,500 a year less in state and local taxes than California, mostly because property tax on a median home runs $1,704 a year against $5,609 in California.
California
Moderate tax burden · COL index 142
Wins 4 categories
Indiana
Moderate tax burden · COL index 87
Wins 9 categories
Taxes: California vs Indiana
California has a graduated income tax topping out at 13.3%, which works out to 4.5% on a median income of $74,580, or $3,375 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. Indiana wins on income tax at 2026 rates.
Property tax is 0.71% of home value a year in California and 0.71% in Indiana (Tax Foundation, 2023); on each state's median home that is $5,609 against $1,704.
Combined state and local sales tax averages 8.82% in California 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: $10,957 a year in California, $5,470 in Indiana. Indiana is cheaper on total state and local tax.
Housing and cost of living
California's cost of living index is 142 and Indiana's is 87, where 100 is the national average; Indiana is about 63% cheaper day to day.
The median home costs $790K in California and $240K in Indiana (Zillow, 2024), a $550K gap in Indiana's favor. A two-bedroom rents for about $2,300 a month in California and $1,100 in Indiana.
Home insurance averages $2,100 a year in California and $1,500 in Indiana, so Indiana is cheaper to insure.
Safety
Violent crime runs 499 incidents per 100,000 residents in California and 396 in Indiana (FBI Crime Data Explorer, 2023); Indiana is the safer state by that measure, with a rate 26% lower. Property crime is 2,027 per 100,000 in California against 1,767 in Indiana, again favoring Indiana.
Health
Life expectancy is 79.2 years in California and 75.5 in Indiana (County Health Rankings, 2024), a 3.7-year edge for California. The Commonwealth Fund's 2023 scorecard ranks California's health system 13th of 50 and Indiana's 42nd, so California scores better on care.
6.8% of California residents have no health insurance against 8.9% in Indiana, which favors California. Both states expanded Medicaid.
Schools
Education Week's 2023 Quality Counts report ranks California's K-12 schools 20th in the country and Indiana's 27th, 7 places apart in California's favor. Indiana runs a school-choice voucher program; California does not.
Laws and politics
In the 2024 presidential election California went to Harris by 20 points and Indiana went to Trump by 19 points.
California has may-issue carry permits and a Giffords gun-law grade of A; Indiana has permitless carry and a grade of F, so California regulates guns more tightly and Indiana is the friendlier state for gun owners.
Abortion is protected by state law in California and banned with narrow exceptions in Indiana, and marijuana is legal for adults in California and illegal in Indiana as of 2026. The minimum wage is $16.00 an hour in California and $7.25 in Indiana.
Climate and risk
Natural disaster risk is very high in California (wildfire, earthquake, drought) and moderate in Indiana (tornado, flood), so Indiana is the lower-risk state. Annual average air quality index is 62 in California and 48 in Indiana (under 50 is good), favoring Indiana.
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
California
9
Indiana
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Score For My Profile →Questions people ask
Is California 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 $10,957); Indiana on everyday costs (index 87 against 142); Indiana on safety (396 violent crimes per 100,000 against 499); California on schools (ranked 20th against 27th).
Which is cheaper, California or Indiana?
Indiana is cheaper day to day: cost of living index 87 against 142. The median home is $790K in California and $240K in Indiana (2024). On state and local taxes Indiana saves a median household about $5,500 a year.
Does California or Indiana have lower taxes?
Indiana. A household earning $74,580 pays about $10,957 a year in California ($3,375 income tax, $5,609 property tax on the median home and $1,973 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, California or Indiana?
Indiana, on the FBI's 2023 figures. Violent crime is 499 per 100,000 residents in California and 396 in Indiana; property crime is 2,027 against 1,767.
Which has better schools, California or Indiana?
California. Education Week's 2023 Quality Counts report ranks California 20th of 50 for K-12 and Indiana 27th. Indiana also offers school-choice vouchers.
Is California or Indiana better for retirees?
Indiana is friendlier to retirees on paper. California does not tax Social Security, taxes pensions as income 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 $5,609 a year in California and $1,704 in Indiana.