Austin vs Indianapolis: cost of living compared
Indianapolis is 28% cheaper than Austin overall. Austin (TX) has no state income tax; IN tops out around 3.15%.
Indexes use a US average of 100: below 100 is cheaper than the national average. Housing and transportation are derived from median home prices, rents and commute times; figures come from BLS, Census ACS, Numbeo and the MIT Living Wage Calculator.
The big picture
Comparing Austin and Indianapolis reveals a substantial difference in overall cost of living. Austin is notably more expensive across the board, with its higher housing costs being the primary factor driving this disparity. While other categories also show Austin as pricier, the gap in housing expenses creates the most significant impact on a household budget when considering a move between these two cities. Indianapolis offers a much more budget-friendly environment.
Housing
Housing costs present a stark contrast between these metros. Both buying a home and renting a one-bedroom apartment are considerably more expensive in Austin than in Indianapolis. Austin's housing market is significantly above the national average, while Indianapolis offers housing at a much more affordable rate. This difference extends to property taxes and insurance, which are often higher in more expensive markets, impacting total ownership costs.
Taxes and everyday costs
Daily expenses also vary. Austin has no state income tax, which is a notable advantage compared to Indianapolis, where residents pay a state income tax. However, transportation, food, healthcare, and utilities are all more expensive in Austin. This means that despite the income tax difference, routine spending on essentials like groceries, medical care, and keeping your home comfortable will generally be higher in Austin.
Lifestyle trade-offs
Beyond costs, lifestyle differences are apparent. Austin boasts a warm, humid subtropical climate with hot summers and mild winters, while Indianapolis experiences all four distinct seasons, including cold, snowy winters. Both cities are car-dependent, though Indianapolis typically offers a slightly shorter average commute. Austin is known for its vibrant cultural scene and outdoor activities, while Indianapolis offers a more traditional Midwestern urban experience with a strong focus on sports and a growing downtown.
Bottom line
Moving from Indianapolis to Austin would likely mean a significant increase in your household budget, primarily due to much higher housing expenses. Conversely, a move from Austin to Indianapolis would offer substantial savings, particularly in housing, but also across most other spending categories. While Austin's lack of state income tax offers some relief, the overall cost of living in Indianapolis is considerably more economical for daily life and long-term financial planning.
| Measure | Austin, TX | Indianapolis, IN |
|---|---|---|
| Overall cost of living (US avg = 100) | 118 | 85 |
| Housing index | 132 | 63 |
| Transportation index | 109 | 89 |
| Food index | 102 | 88 |
| Healthcare index | 102 | 92 |
| Utilities index | 112 | 95 |
| Misc index | 102 | 82 |
| Median home price | $498,000 | $218,000 |
| Median 1-bedroom rent | $1,750/mo | $1,000/mo |
| Average commute | 30 min | 25 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Indianapolis home with the True Cost Calculator.