The average cost of living in Indiana
According to the U.S. Bureau of Economic Analysis (BEA), the average annual per-person spending in Indiana was $49,527 in 2023. This figure reflects the value of what residents consume each year across housing, health care, food, gas and energy, and other goods and services.
Here’s a breakdown of the largest spending categories in Indiana:
| Category | Annual per-capita cost in Indiana |
|---|---|
| Housing and utilities | $7,737 |
| Health care | $10,342 |
| Food and beverages for off-premises consumption | $4,033 |
| Gasoline and other energy goods | $1,642 |
| All other personal consumption expenditures | $25,773 |
| Total cost | $49,527 |
Housing costs in Indiana
For most people, housing represents the largest share of their monthly expenses. According to 2025 data from Apartments.com, the average rent in Indiana is $1,110, which is lower than the national average of $1,639. The actual amount you’ll pay depends on local demand, neighborhood and the size of your home. U.S. Census Bureau data from 2023 provides further detail on average rents across Indiana:
- One-bedroom rent: $872
- Two-bedroom rent: $1,061
- Three-bedroom rent: $1,219
- Four-bedroom rent: $1,406
If homeownership is your goal, the median home price in Indiana is $280,000, noticeably much less than the U.S. median home price of $446,638.
Don’t forget about property taxes — Indiana’s effective rates are worth factoring into your budget. Indiana’s rate ranks at No. 27 in the U.S., with average property taxes at 0.77%.
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Food costs in Indiana
Your grocery and dining costs in Indiana will depend on your shopping habits and meal preferences. According to the latest U.S. Census data, the average weekly spend on groceries in Indiana is $239.11, compared with the national average of $270.21.
People who tend to shop at large supermarkets or discount stores may notice savings, especially if they buy in bulk or choose store brands. Eating out — particularly in Indianapolis or other larger cities — will generally cost more than preparing meals at home. Smaller towns and rural areas often offer lower grocery prices, but restaurant options may be more limited.
Transportation costs in Indiana
Transportation expenses can add up quickly, especially when it comes to fuel and insurance. The average price per gallon of regular gas in Indiana is $3.17, compared with the U.S. average of $3.13.
Drivers in Indiana pay an average auto insurance premium of $905.18 for liability, collision and comprehensive coverage, compared with the national average of $1,258.
Health care costs in Indiana
The average annual employee contribution for employer-sponsored health insurance in Indiana is $1,567, with employers covering the remaining $6,669 of the $8,236 total premium.
By comparison, U.S. employees contribute an average of $1,640 annually toward a total premium of $8,182.
Utility costs in Indiana
Households in Indiana can expect an average monthly electric bill of $130.90, compared with $136.84 across the nation.
Natural gas rates in Indiana are $9.52 per thousand cubic feet, while the U.S. average is $12.92.
FAQ
Does Indiana have a high cost of living?
No, Indiana does not have a high cost of living compared with the national average. Housing and utility expenses are generally lower than in most other states, and rent is less than the U.S. median. A ConsumerAffairs study found that Indiana households spend a lower share of their income on housing than most other states.
Is Indiana a good place to live?
Yes, Indiana is a good place to live if affordability is a top priority. Many people move to Indiana because living expenses run lower than the national average, allowing for a comfortable lifestyle even on a moderate income. Renters, families and individuals seeking a more budget-friendly environment often find Indiana appealing.
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Is Indiana good for renters?
Yes, Indiana is good for renters. Rental costs are affordable compared with most of the country, and there are plenty of options. However, tenant protections are not as strong as in some other states, so renters should be aware of their rights and responsibilities before signing a lease.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Apartments.com, “Rent Trends.” Accessed Aug. 20, 2025.
- Redfin, “Redfin Data Center.” Accessed Aug. 20, 2025.
- Tax Foundation, “Where Do People Pay the Most in Property Taxes?” Accessed Aug. 20, 2025.
- United States Census Bureau, “Week 63 Household Pulse Survey: October 18 - October 30.” Accessed Aug. 20, 2025.
- AAA Gas Prices, “State Gas Price Averages.” Accessed Aug. 20, 2025.
- National Association of Insurance Commissioners, “2021/2022 Auto Insurance Database Report.” Accessed Aug. 20, 2025.
- KFF, “Average Annual Single Premium per Enrolled Employee For Employer-Based Health Insurance.” Accessed Aug. 20, 2025.
- U.S. Energy Information Administration, “2023 Average Monthly Bill- Residential.” Accessed Aug. 20, 2025.
