Boston vs Indianapolis: cost of living compared
Indianapolis is 48% cheaper than Boston overall. State income tax tops out around 3.15% in IN vs 5% in MA.
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
Moving between Boston and Indianapolis represents a significant shift in overall cost of living. Boston is considerably more expensive across nearly all categories, with its higher housing costs being the primary driver of this difference. Indianapolis offers a much more affordable lifestyle, making it an attractive option for those prioritizing budget considerations. The disparity in expenses is substantial, impacting everything from daily necessities to major purchases.
Housing
Housing costs present the most dramatic difference between these two metros. Both buying a home and renting an apartment in Boston are substantially more expensive than in Indianapolis. Boston's housing stock often includes older, multi-family structures and historic properties, while Indianapolis features a broader mix of newer construction and more spacious single-family homes. Property taxes and insurance costs will also reflect these price differences, generally being higher in Boston.
Taxes and everyday costs
Daily expenses for transportation, food, healthcare, and utilities are all noticeably higher in Boston compared to Indianapolis. Additionally, Massachusetts has a state income tax that is higher than Indiana's. This means that after housing, nearly every other aspect of daily spending, from groceries to medical care, will require a larger portion of one's income in Boston.
Lifestyle trade-offs
Beyond costs, lifestyle differences are notable. Boston, a historic coastal city, experiences distinct four seasons, including cold, snowy winters. It offers extensive public transit and a denser, more walkable urban environment. Indianapolis, located inland, also has four seasons but generally milder winters. It is characterized by a more car-dependent culture, a generally flatter landscape, and a more spread-out urban footprint, with a slightly shorter average commute.
Bottom line
For households considering a move, the financial implications are clear: Indianapolis offers a significantly more affordable cost of living across the board, particularly in housing. While Boston provides a unique historic and coastal experience with robust public transit, it comes at a much higher price point for nearly every expense. A move from Boston to Indianapolis would free up a substantial portion of a household budget, whereas the reverse would necessitate a considerable increase in income to maintain a similar standard of living.
| Measure | Boston, MA | Indianapolis, IN |
|---|---|---|
| Overall cost of living (US avg = 100) | 162 | 85 |
| Housing index | 194 | 63 |
| Transportation index | 121 | 89 |
| Food index | 115 | 88 |
| Healthcare index | 118 | 92 |
| Utilities index | 135 | 95 |
| Misc index | 122 | 82 |
| Median home price | $698,000 | $218,000 |
| Median 1-bedroom rent | $2,850/mo | $1,000/mo |
| Average commute | 32 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.