State comparison
Indiana vs Nebraska: which state is better to live in?
Indiana costs a median household about $3,000 a year less in state and local taxes than Nebraska, mostly because property tax on a median home runs $1,704 a year against $3,816 in Nebraska.
Indiana
Moderate tax burden · COL index 87
Wins 6 categories
Nebraska
Moderate tax burden · COL index 91
Wins 8 categories
Taxes: Indiana vs Nebraska
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. Nebraska has a graduated income tax topping out at 3.99%, which works out to 4.1% on a median income of $74,580, or $3,093 a year. Indiana wins on income tax at 2026 rates.
Property tax is 0.71% of home value a year in Indiana and 1.44% in Nebraska (Tax Foundation, 2023); on each state's median home that is $1,704 against $3,816, so Indiana has the lower rate.
Combined state and local sales tax averages 7.00% in Indiana and 6.94% in Nebraska; Nebraska 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, $8,461 in Nebraska. Indiana is cheaper on total state and local tax.
Housing and cost of living
Indiana's cost of living index is 87 and Nebraska's is 91, where 100 is the national average; Indiana is about 5% cheaper day to day.
The median home costs $240K in Indiana and $265K in Nebraska (Zillow, 2024), a $25K gap in Indiana's favor. A two-bedroom rents for about $1,100 a month in Indiana and $1,150 in Nebraska.
Home insurance averages $1,500 a year in Indiana and $2,200 in Nebraska, so Indiana is cheaper to insure.
Safety
Violent crime runs 396 incidents per 100,000 residents in Indiana and 311 in Nebraska (FBI Crime Data Explorer, 2023); Nebraska is the safer state by that measure, with a rate 27% lower. Property crime is 1,767 per 100,000 in Indiana against 1,956 in Nebraska, again favoring Indiana.
Health
Life expectancy is 75.5 years in Indiana and 78.6 in Nebraska (County Health Rankings, 2024), a 3.1-year edge for Nebraska. The Commonwealth Fund's 2023 scorecard ranks Indiana's health system 42nd of 50 and Nebraska's 26th, so Nebraska scores better on care.
8.9% of Indiana residents have no health insurance against 7.1% in Nebraska, which favors Nebraska. Both states expanded Medicaid.
Schools
Education Week's 2023 Quality Counts report ranks Indiana's K-12 schools 27th in the country and Nebraska's 18th, 9 places apart in Nebraska'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 Nebraska went to Trump by 19 points.
Indiana has permitless carry and a Giffords gun-law grade of F; Nebraska has permitless carry and a grade of F.
Abortion is banned with narrow exceptions in Indiana and legal with limits in Nebraska, and marijuana is illegal in Indiana and medical only in Nebraska as of 2026. The minimum wage is $7.25 an hour in Indiana and $12.00 in Nebraska.
Climate and risk
Natural disaster risk is moderate in Indiana (tornado, flood) and high in Nebraska (tornado, blizzard, flood), so Indiana is the lower-risk state. Annual average air quality index is 48 in Indiana and 33 in Nebraska (under 50 is good), favoring Nebraska.
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
6
Indiana
8
Nebraska
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Score For My Profile →Questions people ask
Is Indiana or Nebraska better to live in?
It depends on what you weigh most. Indiana on taxes ($5,470 a year for a median household against $8,461); Indiana on everyday costs (index 87 against 91); Nebraska on safety (311 violent crimes per 100,000 against 396); Nebraska on schools (ranked 18th against 27th).
Which is cheaper, Indiana or Nebraska?
Indiana is cheaper day to day: cost of living index 87 against 91. The median home is $240K in Indiana and $265K in Nebraska (2024). On state and local taxes Indiana saves a median household about $3,000 a year.
Does Indiana or Nebraska 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 $8,461 in Nebraska ($3,093 income tax, $3,816 property tax on the median home and $1,553 in sales tax), at 2026 rates.
Which is safer, Indiana or Nebraska?
Nebraska, on the FBI's 2023 figures. Violent crime is 396 per 100,000 residents in Indiana and 311 in Nebraska; property crime is 1,767 against 1,956.
Which has better schools, Indiana or Nebraska?
Nebraska. Education Week's 2023 Quality Counts report ranks Indiana 27th of 50 for K-12 and Nebraska 18th.
Is Indiana or Nebraska 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; Nebraska does not tax Social Security, partly exempts pensions and has an inheritance tax. Property tax on a median home is $1,704 a year in Indiana and $3,816 in Nebraska.