Indianapolis vs Sacramento: cost of living compared
Sacramento is 51% more expensive than Indianapolis overall. State income tax tops out around 3.15% in IN vs 9.3% in CA.
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
Indianapolis offers a considerably more affordable cost of living compared to Sacramento. The most significant difference stems from housing expenses, which are dramatically lower in the Midwest city. While other categories like transportation, food, healthcare, and utilities also show Indianapolis as more budget-friendly, housing is the primary driver of the overall cost gap, making it a key consideration for anyone weighing a move between these two metropolitan areas.
Housing
Housing costs present a substantial contrast, with both median home prices and typical rents for a one-bedroom apartment being much lower in Indianapolis. The housing stock in Indianapolis often features more traditional, detached homes on larger lots, while Sacramento's housing market reflects its coastal state location with higher demand. Property taxes and insurance costs, while not detailed, generally align with the overall lower cost structure in Indianapolis.
Taxes and everyday costs
Daily expenses for essentials like groceries, healthcare, and utilities are noticeably lower in Indianapolis. Transportation costs are also more favorable in the Midwestern city, despite comparable average commute times. A significant difference for take-home pay is the state income tax, which is substantially higher in California, impacting overall disposable income for Sacramento residents compared to those in Indianapolis.
Lifestyle trade-offs
Indianapolis experiences a four-season climate with cold winters and warm, humid summers, while Sacramento enjoys a Mediterranean climate with dry, hot summers and mild, wet winters. Both cities are largely car-dependent, though Sacramento has some light rail options. Indianapolis generally has a more relaxed pace and lower population density, while Sacramento, as a state capital, can feel more bustling, with closer proximity to varied natural landscapes.
Bottom line
Moving from Sacramento to Indianapolis would likely result in substantial savings across nearly all budget categories, especially housing and state income taxes, freeing up significant funds monthly. Conversely, a move from Indianapolis to Sacramento would necessitate a much larger budget to maintain a similar standard of living. The decision hinges on prioritizing a lower cost of living and distinct climate versus the higher costs associated with California's amenities and weather.
| Measure | Indianapolis, IN | Sacramento, CA |
|---|---|---|
| Overall cost of living (US avg = 100) | 85 | 128 |
| Housing index | 63 | 132 |
| Transportation index | 89 | 110 |
| Food index | 88 | 108 |
| Healthcare index | 92 | 108 |
| Utilities index | 95 | 125 |
| Misc index | 82 | 105 |
| Median home price | $218,000 | $498,000 |
| Median 1-bedroom rent | $1,000/mo | $1,750/mo |
| Average commute | 25 min | 30 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Sacramento home with the True Cost Calculator.