Is Indianapolis, IN cheaper than Lexington, KY?

Based on cost of living data, Indianapolis, IN is 6.5% cheaper than Lexington, KY. This translates to saving $484 per month.

What salary do I need in Indianapolis, IN to live like I do in Lexington, KY?

If you earn $150,000 in Lexington, KY, you'd need approximately $144,193.548 in Indianapolis, IN to maintain the same standard of living.

How does housing cost compare between Lexington, KY and Indianapolis, IN?

Housing in Indianapolis, IN is 16.7% cheaper than in Lexington, KY. For a two-bedroom apartment, rent is $1,360/month in Indianapolis, IN compared to $1,390/month in Lexington, KY.

How much can I save per month by moving from Lexington, KY to Indianapolis, IN?

Moving from Lexington, KY to Indianapolis, IN could save you approximately $484 per month, or $5806 per year, based on a $150,000 salary.

Lexington, KY vs Indianapolis, IN: Cost of Living Comparison 2026

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Cost of Living Comparison 2026

Current salary in Lexington, KY

Numbers update automatically as you type

You'd save $484/month moving to Indianapolis, IN

$150.0K in your current city equals $144.2K in Indianapolis, IN

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

Overall Cost

↓ 6.5%

Less expensive

Monthly Impact

$484

Savings

Annual Impact

$5.8K

Per year

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

Lexington, KY

Population:323K

Cost Index:100

Median Home:$345K

Indianapolis, IN

Population:888K

Cost Index:94

Median Home:$176K

Lexington, KY

The Bluegrass State

323K

Population

State Tax

Yes

Located in Kentucky, this city has a population of 323K residents.

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: Lexington, KY vs Indianapolis, IN

Category	Lexington, KY	Indianapolis, IN	Difference	Change
🏠Housing	$2,339/mo	$1,949/mo	↓ $390less	16.7%
📦Other	$1,641/mo	$1,590/mo	↓ $50.22less	3.1%
🛒Groceries	$959/mo	$919/mo	↓ $39.97less	4.2%
⚡All Utilities	$464/mo	$503/mo	↑ $38.25more	8.2%
🏥Healthcare	$551/mo	$582/mo	↑ $30.98more	5.6%
🚗Transportation	$1,216/mo	$1,188/mo	↓ $27.32less	2.2%

🏠Housing

↓ 16.7%

Lexington, KY

$2,339

Indianapolis, IN

$1,949

Difference

$390

less

📦Other

↓ 3.1%

Lexington, KY

$1,641

Indianapolis, IN

$1,590

Difference

$50.22

less

🛒Groceries

↓ 4.2%

Lexington, KY

$959

Indianapolis, IN

$919

Difference

$39.97

less

⚡All Utilities

↑ 8.2%

Lexington, KY

$464

Indianapolis, IN

$503

Difference

$38.25

🏥Healthcare

↑ 5.6%

Lexington, KY

$551

Indianapolis, IN

$582

Difference

$30.98

🚗Transportation

↓ 2.2%

Lexington, KY

$1,216

Indianapolis, IN

$1,188

Difference

$27.32

less

🏛️ Local Income Taxes

Lexington, KY: Lexington Occupational Tax$3,750/yr (2.5%)

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

Net difference-$720/yr

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

🏠Rent Comparison

Studio

From$960

To$1,030

↑ $70.00

1 Bed

From$1,180

To$1,170

↓ $10.00

2 Bed

From$1,390

To$1,360

↓ $30.00

3 Bed

From$1,900

To$1,760

↓ $140

Lexington, KYZIP-level data

1BR range: $940–$1,500/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.

$7,170

Monthly in Lexington, KY

$6,732

Monthly in Indianapolis, IN

$438

Difference

Home Values

Lexington

Indianapolis

$345K

Median Value

$176K

↑ +5%

YoY Change

↓ -1.1%

↑ +43.5%

5-Year Change

↑ +26.9%

$214K - $711K

Price Range

$109K - $340K

Homes in Indianapolis are 49% less expensive than Lexington

Calculate payment - Lexington Calculate payment - Indianapolis

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

Tax Comparison

Annual tax burden comparison at $150.0K salary

Tax Savings

↑ $2.7K

Per year

Monthly Difference

$221

More take-home

Effective Rate Diff

1.8%

Rate difference

Lexington, KY

Federal Income Tax

Effective: 18.9%

$25.5K

Kentucky State Tax

Effective: 5.0%

$7.5K

FICA Taxes

Social Security + Medicare

$11.5K

Total Taxes

Effective: 29.7%

$44.5K

Take-Home Pay

$8,791/month

$105.5K

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

Lexington, KY Tax Rates

Sales Tax:6.0%

Property Tax:0.9%

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.