Is Indianapolis, IN cheaper than Madison, AL?

Based on cost of living data, Indianapolis, IN is 4.5% cheaper than Madison, AL. This translates to saving $340 per month.

What salary do I need in Indianapolis, IN to live like I do in Madison, AL?

If you earn $150,000 in Madison, AL, you'd need approximately $145,923.96 in Indianapolis, IN to maintain the same standard of living.

How does housing cost compare between Madison, AL and Indianapolis, IN?

Housing in Indianapolis, IN is 3.2% cheaper than in Madison, AL. For a two-bedroom apartment, rent is $1,360/month in Indianapolis, IN compared to $943/month in Madison, AL.

How much can I save per month by moving from Madison, AL to Indianapolis, IN?

Moving from Madison, AL to Indianapolis, IN could save you approximately $340 per month, or $4076 per year, based on a $150,000 salary.

Madison, AL vs Indianapolis, IN: Cost of Living Comparison 2026

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Cost of Living Comparison 2026

📍 Madison, AL — COL adjusted from Birmingham, AL area + state data

Current salary in Madison, AL

Numbers update automatically as you type

You'd save $340/month moving to Indianapolis, IN

$150.0K in your current city equals $145.9K in Indianapolis, IN

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

Overall Cost

↓ 4.5%

Less expensive

Monthly Impact

$340

Savings

Annual Impact

$4.1K

Per year

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

Madison, AL

Population:61K

Cost Index:100

Median Home:$90K

Indianapolis, IN

Population:888K

Cost Index:95

Median Home:$176K

Madison, AL

The Heart of Dixie

61K

Population

State Tax

Yes

Located in Alabama, this city has a population of 61K 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: Madison, AL vs Indianapolis, IN

Category	Madison, AL	Indianapolis, IN	Difference	Change
🚗Transportation	$1,259/mo	$1,188/mo	↓ $70.68less	5.6%
🏠Housing	$2,014/mo	$1,949/mo	↓ $65.24less	3.2%
🛒Groceries	$982/mo	$919/mo	↓ $62.46less	6.4%
📦Other	$1,648/mo	$1,590/mo	↓ $57.91less	3.5%
🏥Healthcare	$526/mo	$582/mo	↑ $56.10more	10.7%
⚡All Utilities	$554/mo	$503/mo	↓ $50.93less	9.2%

🚗Transportation

↓ 5.6%

Madison, AL

$1,259

Indianapolis, IN

$1,188

Difference

$70.68

less

🏠Housing

↓ 3.2%

Madison, AL

$2,014

Indianapolis, IN

$1,949

Difference

$65.24

less

🛒Groceries

↓ 6.4%

Madison, AL

$982

Indianapolis, IN

$919

Difference

$62.46

less

📦Other

↓ 3.5%

Madison, AL

$1,648

Indianapolis, IN

$1,590

Difference

$57.91

less

🏥Healthcare

↑ 10.7%

Madison, AL

$526

Indianapolis, IN

$582

Difference

$56.10

⚡All Utilities

↓ 9.2%

Madison, AL

$554

Indianapolis, IN

$503

Difference

$50.93

less

🏛️ Local Income Taxes

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

Madison, AL 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$681

To$1,030

↑ $349

1 Bed

From$786

To$1,170

↑ $384

2 Bed

From$943

To$1,360

↑ $417

3 Bed

From$1,257

To$1,760

↑ $503

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.

$6,983

Monthly in Madison, AL

$6,732

Monthly in Indianapolis, IN

$251

Difference

Home Values

Madison

Indianapolis

Median Value

$176K

YoY Change

↓ -1.1%

5-Year Change

↑ +26.9%

Price Range

$109K - $340K

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

$218

More take-home

Effective Rate Diff

1.7%

Rate difference

Madison, AL

Federal Income Tax

Effective: 18.9%

$25.5K

Alabama State Tax

Effective: 5.0%

$7.5K

FICA Taxes

Social Security + Medicare

$11.5K

Total Taxes

Effective: 29.6%

$44.5K

Take-Home Pay

$8,794/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

Madison, AL Tax Rates

Sales Tax:9.1%

Property Tax:0.4%

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.