Denver vs Indianapolis: cost of living compared
Indianapolis is 34% cheaper than Denver overall. State income tax tops out around 3.15% in IN vs 4.4% in CO.
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 Denver and Indianapolis presents a substantial shift in overall expenses. Denver's cost of living is noticeably higher than the national average, while Indianapolis is considerably more affordable. The most significant factor driving this difference is the cost of housing, which is dramatically higher in Denver. Other categories like transportation, food, and healthcare also contribute to Denver's elevated expenses, though utilities are roughly comparable between the two cities.
Housing
Housing costs show a stark contrast. Both buying a home and renting a one-bedroom apartment are significantly more expensive in Denver. Indianapolis offers much more accessible home prices and rental rates. Denver's housing market is characterized by a mix of older and newer construction, often with a premium for mountain views. Indianapolis features a diverse housing stock, including many historic homes and newer developments, generally at a much lower price point.
Taxes and everyday costs
Daily expenses vary considerably. State income tax is somewhat higher in Denver. Transportation costs are noticeably lower in Indianapolis, as are expenses for food, healthcare, and miscellaneous goods and services. Utilities are relatively similar in both metros. This means that routine spending on groceries, medical care, and getting around will generally be much more budget-friendly in Indianapolis compared to Denver.
Lifestyle trade-offs
Beyond costs, a move involves lifestyle changes. Denver, nestled near the Rocky Mountains, offers a high-altitude, semi-arid climate with abundant sunshine and distinct seasons, including snowy winters. Indianapolis, located in the Midwest, experiences a humid continental climate with warm summers and cold, snowy winters. Denver's urban core is denser with more public transit options, while Indianapolis is more car-dependent with a generally flatter, sprawling landscape.
Bottom line
For households considering a move, the financial implications are substantial. A household budget will stretch considerably further in Indianapolis, primarily due to much lower housing costs. While Denver offers a mountain-adjacent lifestyle and a higher-altitude environment, it comes with a significantly elevated price tag across most spending categories. Indianapolis provides a more budget-friendly option for overall living expenses, offering a different pace and geographic setting.
| Measure | Denver, CO | Indianapolis, IN |
|---|---|---|
| Overall cost of living (US avg = 100) | 128 | 85 |
| Housing index | 146 | 63 |
| Transportation index | 104 | 89 |
| Food index | 105 | 88 |
| Healthcare index | 108 | 92 |
| Utilities index | 98 | 95 |
| Misc index | 108 | 82 |
| Median home price | $548,000 | $218,000 |
| Median 1-bedroom rent | $1,950/mo | $1,000/mo |
| Average commute | 28 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.