Is Indianapolis, IN cheaper than Phoenix, AZ?

Based on cost of living data, Indianapolis, IN is 15.7% cheaper than Phoenix, AZ. This translates to saving $1177 per month.

What salary do I need in Indianapolis, IN to live like I do in Phoenix, AZ?

If you earn $150,000 in Phoenix, AZ, you'd need approximately $135,872.093 in Indianapolis, IN to maintain the same standard of living.

How does housing cost compare between Phoenix, AZ and Indianapolis, IN?

Housing in Indianapolis, IN is 30.1% cheaper than in Phoenix, AZ. For a two-bedroom apartment, rent is $1,360/month in Indianapolis, IN compared to $1,750/month in Phoenix, AZ.

How much can I save per month by moving from Phoenix, AZ to Indianapolis, IN?

Moving from Phoenix, AZ to Indianapolis, IN could save you approximately $1177 per month, or $14128 per year, based on a $150,000 salary.

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Phoenix, AZ

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Indianapolis, IN

Cost of Living Comparison 2026

Current salary in Phoenix, AZ

Numbers update automatically as you type

You'd save $1.2K/month moving to Indianapolis, IN

$150.0K in your current city equals $135.9K in Indianapolis, IN

Rent data from HUD ZIP-level estimates · COL index from Phoenix-Mesa-Chandler, AZ area

Overall Cost

↓ 15.7%

Less expensive

Monthly Impact

$1,177

Savings

Annual Impact

$14.1K

Per year

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

Phoenix, AZ

Population:1608K

Cost Index:100

Median Home:$414K

Indianapolis, IN

Population:888K

Cost Index:84

Median Home:$176K

Phoenix, AZ

The Grand Canyon State

1.6M

Population

State Tax

Yes

Climate

Hot desert

Notable Facts

•Fastest growing major city
•Desert metropolis
•Spring training capital

Major Industries

TechnologyHealthcareTourismManufacturing

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: Phoenix, AZ vs Indianapolis, IN

Category	Phoenix, AZ	Indianapolis, IN	Difference	Change
🏠Housing	$2,788/mo	$1,949/mo	↓ $839less	30.1%
🚗Transportation	$1,489/mo	$1,188/mo	↓ $301less	20.2%
📦Other	$1,677/mo	$1,590/mo	↓ $87.05less	5.2%
⚡All Utilities	$561/mo	$503/mo	↓ $58.47less	10.4%
🛒Groceries	$963/mo	$919/mo	↓ $43.97less	4.6%
🏥Healthcare	$589/mo	$582/mo	↓ $6.20less	1.1%

🏠Housing

↓ 30.1%

Phoenix, AZ

$2,788

Indianapolis, IN

$1,949

Difference

$839

less

🚗Transportation

↓ 20.2%

Phoenix, AZ

$1,489

Indianapolis, IN

$1,188

Difference

$301

less

📦Other

↓ 5.2%

Phoenix, AZ

$1,677

Indianapolis, IN

$1,590

Difference

$87.05

less

⚡All Utilities

↓ 10.4%

Phoenix, AZ

$561

Indianapolis, IN

$503

Difference

$58.47

less

🛒Groceries

↓ 4.6%

Phoenix, AZ

$963

Indianapolis, IN

$919

Difference

$43.97

less

🏥Healthcare

↓ 1.1%

Phoenix, AZ

$589

Indianapolis, IN

$582

Difference

$6.20

less

🏛️ Local Income Taxes

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

Phoenix, AZ 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$1,390

To$1,030

↓ $360

1 Bed

From$1,510

To$1,170

↓ $340

2 Bed

From$1,750

To$1,360

↓ $390

3 Bed

From$2,330

To$1,760

↓ $570

Phoenix, AZZIP-level data

1BR range: $1,300–$2,380/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.

$8,068

Monthly in Phoenix, AZ

$6,732

Monthly in Indianapolis, IN

$1,336

Difference

Home Values

Phoenix

Indianapolis

$414K

Median Value

$176K

↓ -3.1%

YoY Change

↓ -1.1%

↑ +30.2%

5-Year Change

↑ +26.9%

$274K - $957K

Price Range

$109K - $340K

Homes in Indianapolis are 57% less expensive than Phoenix

Calculate payment - Phoenix Calculate payment - Indianapolis

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

Tax Comparison

Annual tax burden comparison at $150.0K salary

Tax Savings

↑ $388

Per year

Monthly Difference

$32.32

More take-home

Effective Rate Diff

0.3%

Rate difference

Phoenix, AZ

Federal Income Tax

Effective: 18.9%

$25.5K

Arizona State Tax

Effective: 3.5%

$5.2K

FICA Taxes

Social Security + Medicare

$11.5K

Total Taxes

Effective: 28.2%

$42.2K

Take-Home Pay

$8,979/month

$107.8K

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

Phoenix, AZ Tax Rates

Sales Tax:8.5%

Property Tax:0.6%

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.