What’s the cost of living in Indiana?
When considering a move to a new state, understanding the cost of living is vital for effective budgeting and financial planning. If you’re planning to move to Indiana but want an idea of what life will be like once you get there, here are some current statistics related to the cost of living in Indiana.
The average cost of living in Indiana
According to data gathered in 2022 from MERIC, the Missouri Economic Research and Information Center, it has one of the country's lowest living costs—ranking 8th in a list of the lowest to the highest states.
According to the Bureau of Economic Analysis, the average cost of living in Indiana will set you back around $42,697 per year.
Housing costs in Indiana
As of March 2023, the average home value in Indiana is estimated to be around $222,592, according to the Zillow Home Value Index as of March 2023.
It’s important to note that housing prices can significantly differ across various regions within the state.
Typical Home Prices in Indiana (Zillow Date):
Carmel - $515,084
Indianapolis - $223,236
Fort Wayne - $213,590
Evansville - $177,634
South Bend - $165,001
For those considering renting in Indiana, the monthly rental price for a two-bedroom apartment is approximately $921.
Utility costs in Indiana
Utility costs play a significant role in Indiana's overall cost of living. According to Forbes, the average monthly cost is around $469.
Average Monthly Utility Costs in Indiana:
Energy bill: $126.51
Natural gas: $122
Phone bill: $114
Streaming: $47
Monthly water bill: $30
Internet: $30
Grocery and food costs in Indiana
When it comes to groceries and food costs, Indiana generally aligns with prices found elsewhere in the United States.
According to Zippia, those in Chicago pay over $318 on average each month.
According to 2021 data from the Bureau of Labor Statistics, the average spending on food at home is $5,259 annually, or about $438 per month for US households.
Transportation costs in Indiana
Transportation costs, including gas prices and vehicle maintenance, impact Indiana's overall cost of living.
According to MIT, a single adult with no children can expect to pay upwards of $5,300.
Gas prices in Indiana are typically in and around the national average. At the time of writing, Indiana was at the national average. These prices fluctuate over time.
It is also worth noting that prices can vary across different regions within the state.
Healthcare costs in Indiana
Understanding healthcare expenses is crucial when considering the cost of living.
The specific healthcare costs in Indiana can vary depending on factors such as insurance coverage and individual circumstances. Therefore, it is advisable to research and consult with healthcare providers and insurance companies to obtain accurate cost estimates.
Annual Healthcare Expenditure in Indiana Estimated by MIT:
One adult, no children: $3,238
One adult, one child: $8,571
One adult, two children: $8,581
Two adults (one working), no children: $6,655
Two adults (one working), one child: $8,581
Two adults (one working), two children: $8,507
Two adults (two working), no children: $6,655
Two adults (two working), one child: $8,581
Two adults (two working), two children: $8,507
Childcare costs in Indiana
Families in Indiana currently pay around $6,831 per year for childcare for one child. This figure doubles for two children.
However, it's important to note that this figure can vary across the state.
Taxation in Indiana
Indiana’s state income tax rates range between 3.23% - 5.23%.
Taxes in Indiana compared to neighboring states:
Indiana Income Tax Rate: 3.23% - 5.23%
Illinois Income Tax Rate: 4.95%
Kentucky Income Tax Rate: 2% - 5%
Michigan Income Tax Rate: 4.25%
Ohio Income Tax Rate: 0.495% - 4.797%
The sales tax rate in Indiana is 7%. However, it's important to note that counties and municipalities may impose additional local sales taxes. These local sales taxes can vary, ranging from 0.5% to 2.5%, in addition to the state sales tax rate. Therefore, Indiana's total sales tax rate can be higher, depending on the specific location within the state.
The bottom line
The amount of money needed to live comfortably in Indiana can vary depending on location, lifestyle, family size, and personal preferences. However, as the most expensive state in the US, you may need more than you first think.
It's essential to consider these factors, along with personal circumstances and preferences, when evaluating the cost of living in Indiana. In addition, consulting with a financial advisor can provide valuable insights and assistance in managing expenses and financial planning.
Whether you’re retirement planning or considering relocating to chase a new career, Unbiased can assist you with your move's financial ins and outs. Find the right advisor for your needs today.
Writer
Charlie Barton is a writer at Unbiased. He has been writing about personal finance and investing since 2017, with extensive knowledge of platforms and products. Charlie has a first-class degree from the London School of Economics.