State comparison
Indiana vs Michigan: which state is better to live in?
Indiana costs a median household about $2,300 a year less in state and local taxes than Michigan, mostly because property tax on a median home runs $1,704 a year against $3,300 in Michigan.
Indiana
Moderate tax burden · COL index 87
Wins 10 categories
Michigan
Moderate tax burden · COL index 88
Wins 5 categories
Taxes: Indiana vs Michigan
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. Michigan has a flat 4.25% income tax, which works out to 4.3% on a median income of $74,580, or $3,170 a year. Indiana wins on income tax at 2026 rates.
Property tax is 0.71% of home value a year in Indiana and 1.32% in Michigan (Tax Foundation, 2023); on each state's median home that is $1,704 against $3,300, so Indiana has the lower rate.
Combined state and local sales tax averages 7.00% in Indiana and 6.00% in Michigan; Michigan 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, $7,812 in Michigan. Indiana is cheaper on total state and local tax.
Housing and cost of living
Indiana's cost of living index is 87 and Michigan's is 88, where 100 is the national average; Indiana is about 1% cheaper day to day.
The median home costs $240K in Indiana and $250K in Michigan (Zillow, 2024), a $10K gap in Indiana's favor. A two-bedroom rents for about $1,100 a month in Indiana and $1,150 in Michigan.
Home insurance averages $1,500 a year in Indiana and $1,100 in Michigan, so Michigan is cheaper to insure.
Safety
Violent crime runs 396 incidents per 100,000 residents in Indiana and 445 in Michigan (FBI Crime Data Explorer, 2023); Indiana is the safer state by that measure, with a rate 12% lower. Property crime is 1,767 per 100,000 in Indiana against 1,670 in Michigan, again favoring Michigan.
Health
Life expectancy is 75.5 years in Indiana and 75.7 in Michigan (County Health Rankings, 2024), a 0.2-year edge for Michigan. The Commonwealth Fund's 2023 scorecard ranks Indiana's health system 42nd of 50 and Michigan's 25th, so Michigan scores better on care.
8.9% of Indiana residents have no health insurance against 5.9% in Michigan, which favors Michigan. Both states expanded Medicaid.
Schools
Education Week's 2023 Quality Counts report ranks Indiana's K-12 schools 27th in the country and Michigan's 38th, 11 places apart in Indiana's favor. Indiana runs a school-choice voucher program; Michigan does not.
Laws and politics
In the 2024 presidential election Indiana went to Trump by 19 points and Michigan was a swing state decided by 2 points.
Indiana has permitless carry and a Giffords gun-law grade of F; Michigan has shall-issue carry permits and a grade of C+, so Michigan 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 Michigan, and marijuana is illegal in Indiana and legal for adults in Michigan as of 2026. The minimum wage is $7.25 an hour in Indiana and $10.33 in Michigan.
Climate and risk
Natural disaster risk is moderate in Indiana (tornado, flood) and moderate in Michigan (blizzard, flood, tornado). Annual average air quality index is 48 in Indiana and 42 in Michigan (under 50 is good), favoring Michigan.
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
5
Michigan
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Score For My Profile →Questions people ask
Is Indiana or Michigan 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 $7,812); Indiana on everyday costs (index 87 against 88); Indiana on safety (396 violent crimes per 100,000 against 445); Indiana on schools (ranked 27th against 38th).
Which is cheaper, Indiana or Michigan?
Indiana is cheaper day to day: cost of living index 87 against 88. The median home is $240K in Indiana and $250K in Michigan (2024). On state and local taxes Indiana saves a median household about $2,300 a year.
Does Indiana or Michigan 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 $7,812 in Michigan ($3,170 income tax, $3,300 property tax on the median home and $1,342 in sales tax), at 2026 rates.
Which is safer, Indiana or Michigan?
Indiana, on the FBI's 2023 figures. Violent crime is 396 per 100,000 residents in Indiana and 445 in Michigan; property crime is 1,767 against 1,670.
Which has better schools, Indiana or Michigan?
Indiana. Education Week's 2023 Quality Counts report ranks Indiana 27th of 50 for K-12 and Michigan 38th. Indiana also offers school-choice vouchers.
Is Indiana or Michigan 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; Michigan taxes 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 $3,300 in Michigan.