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