Is Indianapolis, IN cheaper than Knoxville, TN?

Based on cost of living data, Indianapolis, IN is 8.0% cheaper than Knoxville, TN. This translates to saving $600 per month.

What salary do I need in Indianapolis, IN to live like I do in Knoxville, TN?

If you earn $150,000 in Knoxville, TN, you'd need approximately $142,798.288 in Indianapolis, IN to maintain the same standard of living.

How does housing cost compare between Knoxville, TN and Indianapolis, IN?

Housing in Indianapolis, IN is 18.0% cheaper than in Knoxville, TN. For a two-bedroom apartment, rent is $1,360/month in Indianapolis, IN compared to $1,495/month in Knoxville, TN.

How much can I save per month by moving from Knoxville, TN to Indianapolis, IN?

Moving from Knoxville, TN to Indianapolis, IN could save you approximately $600 per month, or $7202 per year, based on a $150,000 salary.

Knoxville, TN vs Indianapolis, IN: Cost of Living Comparison 2026

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Cost of Living Comparison 2026

📍 Knoxville, TN — ZIP-level rent data · COL adjusted from Lexington, KY area

Current salary in Knoxville, TN

Numbers update automatically as you type

You'd save $600/month moving to Indianapolis, IN

$150.0K in your current city equals $142.8K in Indianapolis, IN

Rent data from HUD ZIP-level estimates · COL index from Knoxville, TN area

Overall Cost

↓ 8.0%

Less expensive

Monthly Impact

$600

Savings

Annual Impact

$7.2K

Per year

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

Knoxville, TN

Population:198K

Cost Index:100

Median Home:$369K

Indianapolis, IN

Population:888K

Cost Index:92

Median Home:$176K

Knoxville, TN

The Volunteer State

198K

Population

State Tax

No Income Tax

Located in Tennessee, this city has a population of 198K residents.

💡 Advantage: Tennessee has no state income tax!

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: Knoxville, TN vs Indianapolis, IN

Category	Knoxville, TN	Indianapolis, IN	Difference	Change
🏠Housing	$2,378/mo	$1,949/mo	↓ $429less	18.0%
📦Other	$1,668/mo	$1,590/mo	↓ $77.87less	4.7%
🛒Groceries	$967/mo	$919/mo	↓ $48.02less	5.0%
🚗Transportation	$1,236/mo	$1,188/mo	↓ $47.81less	3.9%
⚡All Utilities	$468/mo	$503/mo	↑ $34.35more	7.3%
🏥Healthcare	$556/mo	$582/mo	↑ $26.35more	4.7%

🏠Housing

↓ 18.0%

Knoxville, TN

$2,378

Indianapolis, IN

$1,949

Difference

$429

less

📦Other

↓ 4.7%

Knoxville, TN

$1,668

Indianapolis, IN

$1,590

Difference

$77.87

less

🛒Groceries

↓ 5.0%

Knoxville, TN

$967

Indianapolis, IN

$919

Difference

$48.02

less

🚗Transportation

↓ 3.9%

Knoxville, TN

$1,236

Indianapolis, IN

$1,188

Difference

$47.81

less

⚡All Utilities

↑ 7.3%

Knoxville, TN

$468

Indianapolis, IN

$503

Difference

$34.35

🏥Healthcare

↑ 4.7%

Knoxville, TN

$556

Indianapolis, IN

$582

Difference

$26.35

🏛️ Local Income Taxes

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

Knoxville, TN 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$1,200

To$1,030

↓ $170

1 Bed

From$1,200

To$1,170

↓ $30.00

2 Bed

From$1,495

To$1,360

↓ $135

3 Bed

From$1,891

To$1,760

↓ $131

Knoxville, TNZIP-level data

1BR range: $980–$1,480/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.

$7,274

Monthly in Knoxville, TN

$6,732

Monthly in Indianapolis, IN

$542

Difference

Home Values

Knoxville

Indianapolis

$369K

Median Value

$176K

↑ +0.7%

YoY Change

↓ -1.1%

↑ +64.1%

5-Year Change

↑ +26.9%

$196K - $638K

Price Range

$109K - $340K

Homes in Indianapolis are 52% less expensive than Knoxville

Calculate payment - Knoxville Calculate payment - Indianapolis

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

Tax Comparison

Annual tax burden comparison at $150.0K salary

Tax Savings

↓ $4.8K

More taxes

Monthly Difference

$404

Less take-home

Effective Rate Diff

3.2%

Rate difference

Knoxville, TN

Federal Income Tax

Effective: 18.9%

$25.5K

Tennessee State Tax

No state income tax

FICA Taxes

Social Security + Medicare

$11.5K

Total Taxes

Effective: 24.7%

$37.0K

Take-Home Pay

$9,416/month

$113.0K

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

Knoxville, TN Tax Rates

Sales Tax:9.5%

Property Tax:0.7%

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.