State comparison
Indiana vs California: 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.
Indiana
Moderate tax burden · COL index 87
Wins 9 categories
California
Moderate tax burden · COL index 142
Wins 4 categories
Taxes: Indiana vs California
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. 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 wins on income tax at 2026 rates.
Property tax is 0.71% of home value a year in Indiana and 0.71% in California (Tax Foundation, 2023); on each state's median home that is $1,704 against $5,609.
Combined state and local sales tax averages 7.00% in Indiana and 8.82% in California; 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, $10,957 in California. Indiana is cheaper on total state and local tax.
Housing and cost of living
Indiana's cost of living index is 87 and California's is 142, where 100 is the national average; Indiana is about 63% cheaper day to day.
The median home costs $240K in Indiana and $790K in California (Zillow, 2024), a $550K gap in Indiana's favor. A two-bedroom rents for about $1,100 a month in Indiana and $2,300 in California.
Home insurance averages $1,500 a year in Indiana and $2,100 in California, so Indiana is cheaper to insure.
Safety
Violent crime runs 396 incidents per 100,000 residents in Indiana and 499 in California (FBI Crime Data Explorer, 2023); Indiana is the safer state by that measure, with a rate 26% lower. Property crime is 1,767 per 100,000 in Indiana against 2,027 in California, again favoring Indiana.
Health
Life expectancy is 75.5 years in Indiana and 79.2 in California (County Health Rankings, 2024), a 3.7-year edge for California. The Commonwealth Fund's 2023 scorecard ranks Indiana's health system 42nd of 50 and California's 13th, so California scores better on care.
8.9% of Indiana residents have no health insurance against 6.8% in California, which favors California. Both states expanded Medicaid.
Schools
Education Week's 2023 Quality Counts report ranks Indiana's K-12 schools 27th in the country and California's 20th, 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 Indiana went to Trump by 19 points and California went to Harris by 20 points.
Indiana has permitless carry and a Giffords gun-law grade of F; California has may-issue carry permits and a grade of A, so California regulates guns more tightly and Indiana is the friendlier state for gun owners.
Abortion is banned with narrow exceptions in Indiana and protected by state law in California, and marijuana is illegal in Indiana and legal for adults in California as of 2026. The minimum wage is $7.25 an hour in Indiana and $16.00 in California.
Climate and risk
Natural disaster risk is moderate in Indiana (tornado, flood) and very high in California (wildfire, earthquake, drought), so Indiana is the lower-risk state. Annual average air quality index is 48 in Indiana and 62 in California (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
9
Indiana
4
California
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Score For My Profile →Questions people ask
Is Indiana or California 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, Indiana or California?
Indiana is cheaper day to day: cost of living index 87 against 142. The median home is $240K in Indiana and $790K in California (2024). On state and local taxes Indiana saves a median household about $5,500 a year.
Does Indiana or California 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 $10,957 in California ($3,375 income tax, $5,609 property tax on the median home and $1,973 in sales tax), at 2026 rates.
Which is safer, Indiana or California?
Indiana, on the FBI's 2023 figures. Violent crime is 396 per 100,000 residents in Indiana and 499 in California; property crime is 1,767 against 2,027.
Which has better schools, Indiana or California?
California. Education Week's 2023 Quality Counts report ranks Indiana 27th of 50 for K-12 and California 20th. Indiana also offers school-choice vouchers.
Is Indiana or California better for retirees?
Indiana is friendlier to retirees on paper. Indiana does not tax Social Security, partly exempts pensions and has no estate or inheritance tax; California does not tax Social Security, taxes pensions as income and has no estate or inheritance tax. Property tax on a median home is $1,704 a year in Indiana and $5,609 in California.