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State comparison

Nebraska vs Indiana: 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.

Nebraska

Moderate tax burden · COL index 91

Wins 8 categories

VS

Indiana

Moderate tax burden · COL index 87

Wins 6 categories

Taxes: Nebraska vs Indiana

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 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 1.44% of home value a year in Nebraska and 0.71% in Indiana (Tax Foundation, 2023); on each state's median home that is $3,816 against $1,704, so Indiana has the lower rate.

Combined state and local sales tax averages 6.94% in Nebraska and 7.00% in Indiana; Nebraska is lower.

Add it up for a household earning $74,580 (the 2022 national median) and owning the median home: $8,461 a year in Nebraska, $5,470 in Indiana. Indiana is cheaper on total state and local tax.

Housing and cost of living

Nebraska's cost of living index is 91 and Indiana's is 87, where 100 is the national average; Indiana is about 5% cheaper day to day.

The median home costs $265K in Nebraska and $240K in Indiana (Zillow, 2024), a $25K gap in Indiana's favor. A two-bedroom rents for about $1,150 a month in Nebraska and $1,100 in Indiana.

Home insurance averages $2,200 a year in Nebraska and $1,500 in Indiana, so Indiana is cheaper to insure.

Safety

Violent crime runs 311 incidents per 100,000 residents in Nebraska and 396 in Indiana (FBI Crime Data Explorer, 2023); Nebraska is the safer state by that measure, with a rate 27% lower. Property crime is 1,956 per 100,000 in Nebraska against 1,767 in Indiana, again favoring Indiana.

Health

Life expectancy is 78.6 years in Nebraska and 75.5 in Indiana (County Health Rankings, 2024), a 3.1-year edge for Nebraska. The Commonwealth Fund's 2023 scorecard ranks Nebraska's health system 26th of 50 and Indiana's 42nd, so Nebraska scores better on care.

7.1% of Nebraska residents have no health insurance against 8.9% in Indiana, which favors Nebraska. Both states expanded Medicaid.

Schools

Education Week's 2023 Quality Counts report ranks Nebraska's K-12 schools 18th in the country and Indiana's 27th, 9 places apart in Nebraska's favor. Both states run school-choice voucher programs.

Laws and politics

In the 2024 presidential election Nebraska went to Trump by 19 points and Indiana went to Trump by 19 points.

Nebraska has permitless carry and a Giffords gun-law grade of F; Indiana has permitless carry and a grade of F.

Abortion is legal with limits in Nebraska and banned with narrow exceptions in Indiana, and marijuana is medical only in Nebraska and illegal in Indiana as of 2026. The minimum wage is $12.00 an hour in Nebraska and $7.25 in Indiana.

Climate and risk

Natural disaster risk is high in Nebraska (tornado, blizzard, flood) and moderate in Indiana (tornado, flood), so Indiana is the lower-risk state. Annual average air quality index is 33 in Nebraska and 48 in Indiana (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.

Nebraska
Indiana

Taxes

3.99%
Income Tax (top rate)
3.05%
1.44%/yr
Property Tax Rate
0.71%/yr
6.94%
Sales Tax (avg)
7%
No
Taxes Social Security
No
No
Estate Tax
No
As income
Capital Gains Tax
As income

Housing & Cost of Living

91
COL Index (100=avg)
87
$265K
Median Home Price
$240K
$1,150/mo
Median Rent (2BR/mo)
$1,100/mo
$2K/yr
Home Insurance (avg/yr)
$2K/yr

Crime & Safety

311
Violent Crime / 100K
396
1,956
Property Crime / 100K
1,767
280
Sex Offenders / 100K
166
136
Homeless / 100K
91

Healthcare

#26 of 50
Healthcare Quality Rank
#42 of 50
78.6 yrs
Life Expectancy
75.5 yrs
7.1%
Uninsured Rate
8.9%
Yes
Medicaid Expansion
Yes

Education

#18 of 50
K-12 Quality Rank
#27 of 50
Yes
School Choice / Vouchers
Yes

Childcare

$1,000/mo
Avg Infant Care / mo
$1,100/mo

Utilities & Daily Costs

$125/mo
Avg Energy Bill / mo
$135/mo
$460/mo
Avg Groceries / mo
$440/mo
#5 of 50
Road Quality Rank
#9 of 50

Social Policy

F
Gun Laws Grade
F
R+19.0
2024 Presidential Margin
R+19.0

Category wins

8

Nebraska

6

Indiana

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Questions people ask

Is Nebraska or Indiana 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, Nebraska or Indiana?

Indiana is cheaper day to day: cost of living index 87 against 91. The median home is $265K in Nebraska and $240K in Indiana (2024). On state and local taxes Indiana saves a median household about $3,000 a year.

Does Nebraska or Indiana have lower taxes?

Indiana. A household earning $74,580 pays about $8,461 a year in Nebraska ($3,093 income tax, $3,816 property tax on the median home and $1,553 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, Nebraska or Indiana?

Nebraska, on the FBI's 2023 figures. Violent crime is 311 per 100,000 residents in Nebraska and 396 in Indiana; property crime is 1,956 against 1,767.

Which has better schools, Nebraska or Indiana?

Nebraska. Education Week's 2023 Quality Counts report ranks Nebraska 18th of 50 for K-12 and Indiana 27th.

Is Nebraska or Indiana better for retirees?

Indiana is friendlier to retirees on paper. Nebraska does not tax Social Security, partly exempts pensions and has an 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 $3,816 a year in Nebraska and $1,704 in Indiana.

Full Nebraska Profile →Full Indiana Profile →

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