Indianapolis vs Nashville: cost of living compared
Nashville is 27% more expensive than Indianapolis overall. Nashville (TN) 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 overall costs, Indianapolis is noticeably more affordable than Nashville. The most significant factor driving this difference is housing, which is substantially higher in Nashville. While other categories like transportation, food, and utilities also show Nashville as more expensive, the housing market creates the largest gap in the cost of living between these two metros.
Housing
Housing costs present a stark contrast. Both buying a home and renting an apartment are considerably more expensive in Nashville. Indianapolis offers much more accessible home prices and lower monthly rental costs. While property taxes and insurance vary, the initial outlay for housing, whether purchasing or renting, is a much larger financial commitment in Nashville than in Indianapolis.
Taxes and everyday costs
Daily expenses also differ. Tennessee has no state income tax, which is a notable saving compared to Indiana's state income tax. However, transportation, food, healthcare, and utilities are all more expensive in Nashville. This means that even with the income tax difference, many everyday spending categories will still require a larger budget in Nashville compared to Indianapolis.
Lifestyle trade-offs
Beyond costs, lifestyle offers distinct flavors. Indianapolis experiences four distinct seasons, including colder winters, and is known for its motorsports and a more Midwestern pace. Nashville, with its warmer climate and vibrant music scene, has a quicker pace and a more Southern feel. Both offer urban amenities, but Nashville's growth has led to more traffic congestion and longer average commutes.
Bottom line
For households considering a move, the financial implications are clear: Indianapolis generally offers a much more budget-friendly environment across the board, primarily due to significantly lower housing costs. While Nashville provides the benefit of no state income tax, this saving is largely offset by higher prices in nearly every other spending category, making a move to Nashville a more substantial financial commitment.
| Measure | Indianapolis, IN | Nashville, TN |
|---|---|---|
| Overall cost of living (US avg = 100) | 85 | 108 |
| Housing index | 63 | 119 |
| Transportation index | 89 | 104 |
| Food index | 88 | 98 |
| Healthcare index | 92 | 98 |
| Utilities index | 95 | 98 |
| Misc index | 82 | 95 |
| Median home price | $218,000 | $438,000 |
| Median 1-bedroom rent | $1,000/mo | $1,650/mo |
| Average commute | 25 min | 29 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Nashville home with the True Cost Calculator.