Indianaflat 3.05% income tax, 19th lowest property tax, median home $240K

R+19 · Moderate tax burden · COL index 87

B+

3.05%

Income Tax

396

Violent Crime / 100K

75.5

Life Expectancy

$240K

Median Home

$1,100

Childcare / Mo

Indiana in plain English

Worth knowing before you move to Indiana

Indiana has a flat income tax just above 3% and most counties add their own income tax on top, typically 1% to 2.5%. Property taxes are capped by the state constitution at 1% of assessed value for homesteads. Indianapolis, Fort Wayne and the Chicago suburbs in Lake County account for most of the growth; the rest of the state is affordable and slow-changing.

What Indiana taxes, and what it doesn't

Indiana levies a flat 3.05% income tax. A household earning $75,000 pays an effective 3.1%, about $2,363 a year; at $150,000 the effective rate is 3.1%. Among the 41 states that tax income, Indiana has the 5th lowest effective rate at $100,000 of income.

Property tax runs 0.71% of home value a year, roughly $1,704 on the state's median home of $240K. The national effective rate is about 1.10%, and Indiana has the 19th lowest rate of the 50 states.

Combined state and local sales tax averages 7.00%, the 25th lowest in the country (the state portion is 7%).

For retirees: Social Security benefits are not taxed, pension income is partly exempt, and there is no estate or inheritance tax.

Capital gains are taxed as ordinary income.

Housing and the cost of living in Indiana

Indiana's cost of living index is 87, where 100 is the national average; that is the 7th cheapest of the 50 states.

The median home costs $240K, 21% below the national figure and the 11th lowest among the states. A two-bedroom rents for about $1,100 a month.

Carrying costs matter as much as the price: home insurance averages $1,500 a year, flood coverage adds about $550 where it is needed, car insurance runs $1,250.

Budget $135 a month for electricity and gas, $440 a month in groceries for two, $1,100 a month for full-time infant care.

Safety, health and schools

Violent crime is 396 incidents per 100,000 residents in the FBI's 2023 Crime Data Explorer figures, above the median state (387); Indiana is the 23rd most violent of the 50 by that measure. Property crime is 1,767 per 100,000.

Life expectancy is 75.5 years (County Health Rankings 2024). 8.9% of residents have no health insurance, and the state has expanded Medicaid. The Commonwealth Fund's 2023 scorecard ranks Indiana's health system 42nd of 50.

Education Week's 2023 Quality Counts report ranks K-12 schools 27th in the country, and the state runs a school-choice voucher program.

Politics, guns and social policy

Politically, Indiana is a solidly Republican state that went to Trump by 19 points in 2024.

On guns, no permit is required to carry a concealed handgun, and Giffords grades the state's gun laws F.

Abortion is banned with narrow exceptions. Marijuana is illegal. Indiana is a right-to-work state, and the minimum wage is $7.25 an hour.

Climate, risk and getting around

Natural disaster risk is moderate. The main hazards are tornado, flood. Annual average air quality index is 48 (under 50 is good).

Indiana has no top-25 hub airport, with about 60 nonstop destinations from its busiest airport.

Written from the figures on this page. Rankings compare the 50 states. Sources and years are listed with each figure below.

Largest counties in Indiana

Marion County Lake County Allen County Hamilton County St. Joseph County Elkhart County Tippecanoe County Vanderburgh County Hendricks County Porter County All Indiana counties →

Ranked lists

State Profile

54/100

Indiana will change its laws. We'll email you when it does.

One email when Indiana changes a tax, gun, cannabis or abortion law. Unsubscribe in one click.

Taxes

Sources: state revenue departments · Tax Foundation 2026 · income-tax brackets 2026

▾

Income Tax

Reducing annually toward 2.9% by 2027

3.05% flat

Property Tax

~$1,704/yr on median home

0.71% / yr

Sales Tax

7% avg

Social Security

Exempt

Pension / IRA

Partial

Estate Tax

None

Inheritance Tax

None

Capital Gains

Taxed as income

Housing & Cost of Living

Sources: Zillow · Census ACS · iii.org and state insurers 2026 · WRLURI 2018 · Census 2024 (HOA)

▾

Price Level vs US (BEA)

Below US average (100)

93.3

Mortgages 90+ Days Late

FHFA, latest quarter

1.1%

Cost of Living Index

National avg = 100

Median Home Price

$240,000

Median Rent (2BR)

$1,100/mo

Home Insurance

Near national avg (~$1,900/yr)

$1,500/yr

Flood Insurance

$550/yr

Homestead Exemption

Home equity protected from creditors

$9,850

Asset Protection

Weak

Homes in HOAs

Moderate HOA presence (Census ACS 2024)

22.2%

Zoning Restrictiveness

Middle of the pack (Wharton WRLURI 2018)

Average

Short-Term Rentals (Airbnb)

State preemption prohibits local license caps/bans (expanded 2026).

State-Protected

Crime & Safety

Sources: FBI Crime Data Explorer 2023 · SafeHome registry counts 2025 · HUD PIT 2024

▾

Violent Crime Rate

Near national avg

396 / 100K

Property Crime Rate

Near national avg

1,767 / 100K

Traffic Fatality Rate

12.4 / 100K

Registered Sex Offenders

Below the state median (SafeHome 2025)

166 / 100K

Homeless Population

Low homelessness rate — 24% unsheltered (HUD 2024 PIT)

91 / 100K

Healthcare

Sources: Commonwealth Fund 2023 · KFF · CDC

▾

State Healthcare Rank

Bottom tier

#42 of 50

Life Expectancy

75.5 yrs

Medicaid Expansion

Expanded

Uninsured Rate

8.9%

Education

Sources: Education Week 2023 · NCES · state statutes (school choice)

▾

College Completion Rate

College Scorecard, in-state institutions (mean)

61%

Avg College Cost of Attendance

College Scorecard 2024

$39,152/yr

K-12 Quality Rank

#27 of 50

School Choice / Vouchers

Available

HS Graduation Rate

Near national avg (~87%)

87.0%

Pupil-Teacher Ratio

Near national avg (~16)

17.0 students/teacher

Childcare

Sources: Child Care Aware · Census ACS 2022

▾

Avg Infant Care (Full-Time)

$1,100/mo

Utilities & Daily Costs

Sources: EIA (electricity, weekly gas) · USDA · eGRID 2022

▾

Grid Carbon Intensity

Dirtier than US average (~820)

1567 lb CO₂/MWh

Avg Monthly Energy Bill

$135/mo

Electricity Rate

Below national avg (13¢)

12.8¢/kWh

Energy Mix

⚡ 15% renewable · ☀ 1% solar · 💨 10% wind

Avg Monthly Groceries

2-person household, moderate spending

$440/mo

Road Quality Rank

#9 of 50

Airports & Travel

Sources: FAA · BTS

▾

Nonstop Destinations

From state's primary airport

60+ routes

Major Hub Airport

Regional airport — connections via hub

Culture & Lifestyle

Sources: Census CBP · Brewers Association 2024 · Pollstar · AANR/TNS · AGA 2024

▾

Urban Population

Mix of urban and rural

72% urban

Restaurant Density

390/100K

Religious Congregations

205/100K

Pro Sports Teams

NFL + NBA + MLB + NHL + MLS

3 teams

Major Venues

Stadiums, arenas, amphitheaters (10K+ capacity)

5 venues

Craft Breweries

2.9/100K residents — Solid scene

200 breweries

Craft Distilleries

45 distilleries

Live Music

Indianapolis growing scene; Indy Jazz Fest; Sun King Brewing is a standout

Decent

Transportation

Sources: NHTSA FARS · FCC · insurance rate surveys 2024 · IIHS helmet laws 2026

▾

Car Insurance (Avg Annual)

$1,250

Traffic Fatality Rate

12.4 / 100K

Broadband Access

83% of households

Work From Home

State residents who primarily work from home (ACS)

264,326 workers

Social & Legal

Sources: Guttmacher · KFF · NCSL · state statutes 2026

▾

Formal Volunteering Rate

AmeriCorps / Census CPS 2023 (US ~28%)

33.1%

Votes in Local Elections

AmeriCorps / Census CPS 2023

48.5%

Abortion Access

Near-total ban effective Sept 2022

Banned

LGBTQ+ Protections

Hostile

Marijuana

Illegal

Minimum Wage

$7.25/hr

Right to Work

Yes

Sports Betting

Legal

Casino Gambling

Commercial casinos

Online Gambling

Illegal

State Lottery

13 licensed commercial casinos. Sports betting launched 2019 — one of the earliest states.

Yes

Age of Consent

Sex Education

No state sex ed mandate

Abstinence-only

Nude Beaches & Naturist Clubs

Ponderosa Sun Club (Roann) · Sun Aura Resort · Indiana Naturist Club

Clubs only

Environment & Climate

Sources: EPA AQI · NOAA · FEMA National Risk Index

▾

Air Quality (Annual AQI)

Near national avg

Natural Disaster Risk

Moderate

Primary Hazards

tornadoflood

Politics & Gun Laws

Sources: OpenElections 2024 · Giffords 2025 · state statutes

▾

2024 Presidential Vote

R+19

Gun Laws

Gun ControlF

2A LibertyA+

Carry Permit

No permit required

Purchase Permit Required

Carry in Bars

Allowed

Carry in Restaurants

Allowed

Carry in Places of Worship

No state prohibition; posting governs.

Allowed

Gambling

Legal

Jobs & Economy

Sources: BLS QCEW 2024 · BLS JOLTS 2024 · BLS union membership 2025 · Census ACS

▾

Job Openings Rate (JOLTS)

Near US average (~4.5%)

4.4%

Quits Rate (JOLTS)

Workers quit when they can find better; BLS 2024 average

2.4%

Job Market

+1.4% job growth · 3.4% unemployment

Moderate

Top Industries

ManufacturingHealthcareLogistics

Tech Jobs

#30 of 50

Healthcare Jobs

#22 of 50

Remote Work

14% of workers

Median Household Income

$67,173

Union Membership

Below-average union presence (BLS 2025)

8.3% of workers

Business Climate

Sources: Tax Foundation · state filings

▾

Corporate Income Tax

4.9%

LLC Formation Fee

$95 one-time

LLC Annual Fee

$32/yr

Business Climate Rank

Top-10 nationally (Tax Foundation SBTCI 2024)

#10 of 50

Daily Life

Sources: American Pyrotechnics Association · state statutes 2026 · IIHS

▾

Gas Price (Regular)

Below avg (-0.16 vs national avg)

$3.14/gal

Consumer Fireworks

Consumer fireworks broadly legal; must be 18+

Legal

Motorcycle Helmet Law

Required under 18 (IIHS 2026)

Age-Limited

Weather & Natural Risks

Sources: NOAA · NWS Storm Prediction Center · FEMA NRI

▾

Winter Severity

Avg January high: 33°F

Cold

Summer Heat

Moderate summers

84°F avg July

Annual Rainfall

40" / yr

Tornado Risk

Moderate

Hurricane Risk

Very Low

Wildfire Risk

Very Low

Flood Risk

Low

Natural Hazards

Sources: USGS · CDC · USDA APHIS · NOAA · FEMA NRI 2023

▾

29LOW danger

Brown recluse zoneTornado alleyCopperhead presence

Venomous Snakes

Moderate

Spider Hazard

Brown Recluse Zone

Hurricane Risk

Minimal

Tornado Risk

High

Wildfire Risk

Minimal

Earthquake Risk

Low

Danger score is a composite index. Methodology ↗

Veteran Benefits

Sources: VA.gov · Military.com state guide · Tax Foundation

▾

Veteran-Friendly Score

6.5% of state population are veterans

75/100

Property Tax Exemption

Disabled vet property tax deduction

Partial

Military Retirement Pay

Tax Exempt

Active Duty Pay

Tax Exempt

VA Facilities Access

Adequate

Notable Benefits

Military retirement fully exempt since 2022

Explore Indiana counties

Income, housing, poverty, healthcare — ranked by county

Explore Counties

See your full cost of living in Indiana

Housing, taxes, childcare, insurance — all estimated.

Calculate

Compare Similar States

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Indiana vs Oklahoma

COL 87 vs 87 · 3.05% vs 4.75% income tax

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IN vs IA

Indiana vs Iowa

COL 87 vs 88 · 3.05% vs 3.8% income tax

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Trending in Indiana

Indiana lawmakers mum on plan ‘to end property taxes on the home you live in’ - Indiana Capital Chronicle

Indiana Capital Chronicle · Sep 4

Indiana Governor Extends Gas Tax Suspension To October - Law360

Law360 · Sep 8

Governor Braun Strengthens Workforce Opportunities in Southeast Indiana - Eagle Country 99.3

Eagle Country 99.3 · Sep 8

Indiana school districts seek tax hikes to fix budget gaps before November - WISH-TV

WISH-TV · Sep 8

County says texts about delinquent taxes are fraudulent messages - Indiana Gazette Online

Indiana Gazette Online · Sep 8

What Residents Say

Moving to Indianapolis area : r/Indiana

property taxes, tag renewals, and pretty much anything we might need to know about living in Indiana...

reddit.com ↗

Considering moving to Indiana

around 130-150k USD/Year. The cost of living is fairly cheap. 150k a year is huge in southern Indiana. $130k-$150k is a good salary in Seymour, ......

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Moving here : r/indianapolis

How's the taxes, cost of living etc? Taxes - compared to New England you'll think you're living here for free. average home is selling for ......

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[Request] How much does it cost to exist in Indianapolis ...

If you pay $0.00 in taxes that leaves you with $3080.00 to eat and pay any bills with. No this is not enough to survive on for most people....

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moving to indy in a few weeks : r/indianapolis

Taxes and lower cost of living to me more than makes up for "fewer" options than Chicago and I find my quality of life better than my friends ......

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If you had the resources to leave where would you go to?

I'll be surprised if I live in Indiana in the next ten years honestly & I've thought of Michigan & Massasscheutts but I was wondering if any of you if given ......

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Trying to return to Indiana after many years

Raises are typically $1,000 per year. Cost of living is not as low as you think in Indiana anymore. Starter homes are $300,000 now....

reddit.com ↗

Want to move to Indiana

Taxes. Childcare costs if you need those. Low cost of living, high quality of life. Costs are less here so you may not get paid as much here....

reddit.com ↗

Thinking of moving to Indianapolis

Relatively safe and clean. Great cost of living versus other big metros. Within 2-3 hr drive of many other equal or bigger cities....

reddit.com ↗

Choosing what state to live in. Any and all advice is ...

Paducah is a fantastic, fertile area for growing food. Indiana has higher property taxes. Michigan is affordable, but long winters are tough....

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Indiana will change its laws. We'll email you when it does.

One email when Indiana changes a tax, gun, cannabis or abortion law. Unsubscribe in one click.

Data is informational only. Verify with a tax professional, real estate agent, and local sources before making relocation decisions. Crime data: FBI Crime Data Explorer 2023. Healthcare: Commonwealth Fund 2023; life expectancy from County Health Rankings 2024. Education: Education Week 2023. Housing: Zillow monthly index and Census ACS 2022. Insurance: rate surveys 2024. Sponsored links marked “Sponsored” may earn a commission. This does not affect our data or rankings.