Is Indianapolis, IN cheaper than Chicago, IL?

Based on cost of living data, Indianapolis, IN is 19.5% cheaper than Chicago, IL. This translates to saving $1464 per month.

What salary do I need in Indianapolis, IN to live like I do in Chicago, IL?

If you earn $150,000 in Chicago, IL, you'd need approximately $132,432.932 in Indianapolis, IN to maintain the same standard of living.

How does housing cost compare between Chicago, IL and Indianapolis, IN?

Housing in Indianapolis, IN is 36.4% cheaper than in Chicago, IL. For a two-bedroom apartment, rent is $1,360/month in Indianapolis, IN compared to $1,925/month in Chicago, IL.

How much can I save per month by moving from Chicago, IL to Indianapolis, IN?

Moving from Chicago, IL to Indianapolis, IN could save you approximately $1464 per month, or $17567 per year, based on a $150,000 salary.

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Chicago, IL

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Indianapolis, IN

Cost of Living Comparison 2026

Current salary in Chicago, IL

Numbers update automatically as you type

You'd save $1.5K/month moving to Indianapolis, IN

$150.0K in your current city equals $132.4K in Indianapolis, IN

Rent data from HUD ZIP-level estimates · COL index from Chicago-Naperville-Elgin, IL-IN-WI area

Overall Cost

↓ 19.5%

Less expensive

Monthly Impact

$1,464

Savings

Annual Impact

$17.6K

Per year

Based on monthly living costs (rent, groceries, utilities, transport, healthcare). Home purchase prices shown separately below.

Chicago, IL

Population:2746K

Cost Index:100

Median Home:$305K

Indianapolis, IN

Population:888K

Cost Index:80

Median Home:$176K

Chicago, IL

The Prairie State

2.7M

Population

State Tax

Yes

Climate

Continental

Notable Facts

•Major transportation hub
•Architectural landmark city
•Great Lakes location

Major Industries

FinanceTechnologyManufacturingTransportation

Indianapolis, IN

The Hoosier State

888K

Population

State Tax

Yes

Located in Indiana, this city has a population of 888K residents.

Cost Breakdown by Category

Annual spending: Chicago, IL vs Indianapolis, IN

Category	Chicago, IL	Indianapolis, IN	Difference	Change
🏠Housing	$3,066/mo	$1,949/mo	↓ $1,117less	36.4%
🚗Transportation	$1,680/mo	$1,188/mo	↓ $492less	29.3%
📦Other	$1,758/mo	$1,590/mo	↓ $167less	9.5%
🛒Groceries	$1,029/mo	$919/mo	↓ $110less	10.7%
⚡All Utilities	$519/mo	$503/mo	↓ $16.39less	3.2%
🏥Healthcare	$595/mo	$582/mo	↓ $12.39less	2.1%

🏠Housing

↓ 36.4%

Chicago, IL

$3,066

Indianapolis, IN

$1,949

Difference

$1,117

less

🚗Transportation

↓ 29.3%

Chicago, IL

$1,680

Indianapolis, IN

$1,188

Difference

$492

less

📦Other

↓ 9.5%

Chicago, IL

$1,758

Indianapolis, IN

$1,590

Difference

$167

less

🛒Groceries

↓ 10.7%

Chicago, IL

$1,029

Indianapolis, IN

$919

Difference

$110

less

⚡All Utilities

↓ 3.2%

Chicago, IL

$519

Indianapolis, IN

$503

Difference

$16.39

less

🏥Healthcare

↓ 2.1%

Chicago, IL

$595

Indianapolis, IN

$582

Difference

$12.39

less

🏛️ Local Income Taxes

Indianapolis, IN: Marion County Income Tax$3,030/yr (2.0%)

Chicago, IL has no local income tax.

Local taxes are in addition to state income tax. Not all cities levy local income taxes.

🏠Rent Comparison

Studio

From$1,600

To$1,030

↓ $570

1 Bed

From$1,710

To$1,170

↓ $540

2 Bed

From$1,925

To$1,360

↓ $565

3 Bed

From$2,480

To$1,760

↓ $720

Chicago, ILZIP-level data

1BR range: $1,140–$2,370/mo

Indianapolis, INZIP-level data

1BR range: $1,080–$1,870/mo

💡 Note: Rent prices are based on HUD Fair Market Rent data and represent median costs. Actual prices vary by neighborhood, amenities, and condition. Source: HUD Small Area Fair Market Rents FY2026.

$8,648

Monthly in Chicago, IL

$6,732

Monthly in Indianapolis, IN

$1,915

Difference

Home Values

Chicago

Indianapolis

$305K

Median Value

$176K

↑ +1.8%

YoY Change

↓ -1.1%

↑ +10.2%

5-Year Change

↑ +26.9%

$116K - $611K

Price Range

$109K - $340K

Homes in Indianapolis are 42% less expensive than Chicago

Calculate payment - Chicago Calculate payment - Indianapolis

Source: Zillow Home Value Index (ZHVI), January 2026

Tax Comparison

Annual tax burden comparison at $150.0K salary

Tax Savings

↑ $2.6K

Per year

Monthly Difference

$215

More take-home

Effective Rate Diff

1.7%

Rate difference

Chicago, IL

Federal Income Tax

Effective: 18.9%

$25.5K

Illinois State Tax

Effective: 5.0%

$7.4K

FICA Taxes

Social Security + Medicare

$11.5K

Total Taxes

Effective: 29.6%

$44.4K

Take-Home Pay

$8,797/month

$105.6K

Indianapolis, IN

Federal Income Tax

Effective: 18.9%

$25.5K

Indiana State Tax

Effective: 3.2%

$4.8K

FICA Taxes

Social Security + Medicare

$11.5K

Total Taxes

Effective: 27.9%

$41.9K

Take-Home Pay

$9,012/month

$108.1K

Additional Tax Information

Chicago, IL Tax Rates

Sales Tax:8.8%

Property Tax:2.2%

Indianapolis, IN Tax Rates

Sales Tax:7.0%

Property Tax:0.9%

💡 Note: Tax calculations are estimates based on 2024/2025 tax brackets for single filers with standard deduction. Actual taxes may vary based on filing status, deductions, credits, and local variations.