Median rent is 3% lower in Carmel ($1,607/mo vs $1,655/mo). Buying is cheaper in Carmel, where the median home runs $455,500 versus $512,700. Households earn more in Carmel ($134,602 vs $91,461 a year). Taken together, Carmel is the more affordable choice with a cost index of 93.8 against 98.8 — about 5% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Carmel, IN.
Quick verdict
Carmel is 5% cheaper overall
Cost index: 93.8 in Carmel vs 98.8 in Austin (US average = 100)
City A
Austin, TX
City B
Carmel, IN
How much would you need to earn in Carmel, IN to maintain your standard of living from Austin, TX?
Equivalent salary in Carmel, IN
$71,201
You could earn $3,799 less (5% lower) and break even.
Based on BEA Regional Price Parity (cost index) for each city's metro area. A rough estimate of overall purchasing power, not tax or take-home pay.
Metric
Austin
Texas
Carmel
Indiana
👥Population
💰Median Household Income
Annual
🏠Median Gross Rent
Per month
🏡Median Home Value
📊Cost of Living Index
US avg = 100
🔑1BR Fair Market Rent
HUD FMR
🔑2BR Fair Market Rent
HUD FMR
🔑3BR Fair Market Rent
HUD FMR
🌬️Air Quality Index
Lower = cleaner
🏛️Top State Income Tax
Top marginal rate
🧾State Sales Tax
Statewide base rate
🎂Median Age
Years
✓ = better value · Sources: US Census ACS, BEA RPP, HUD FMR, EPA AirNow, Tax Foundation
Median rents are similar in both cities: $1,655/mo in Austin and $1,607/mo in Carmel. Median home values are within 11% of each other: $512,700 in Austin and $455,500 in Carmel.
1BR Fair Market Rent
2BR Fair Market Rent
BLS OEWS 2023 — metro-level data
Texas has no state income tax, while Indiana tops out at 3.05% — giving Austin a clear advantage for high earners. Sales tax is 6.25% in Texas and 7.00% in Indiana; Austin has the lower rate (local add-ons may apply in both).
Austin
Income tax: None
Sales tax: 6.25%
Carmel
Income tax: 3.05%
Sales tax: 7.00%
Air quality data is available for Austin (avg AQI 47.0) but not yet for Carmel.
Pick Carmel if you prioritize lower overall cost of living (index 93.8 vs 98.8).
Pick Carmel if you prioritize higher median household income ($134,602/yr).
Pick Austin if you prioritize no state income tax.
Is Austin cheaper than Carmel?
Carmel is cheaper overall, with a cost of living index of 93.8 versus 98.8 (US average = 100). That means prices run about 5% lower in Carmel.
How much is rent in Austin vs Carmel?
Median rent is $1,655/mo in Austin, TX and $1,607/mo in Carmel, IN. Carmel, IN has the lower rent by about 3%.
Which has higher salaries — Austin or Carmel?
Median household income is $91,461 in Austin, TX and $134,602 in Carmel, IN. Carmel, IN has the higher median income. Note that BLS occupational wages in the table above show wages for specific jobs.
Which city has better air quality?
Air quality data is not yet available for one or both cities.
Which has lower taxes — Austin or Carmel?
Texas has no state income tax. Indiana has a top rate of 3.05%.
What salary do I need in Carmel to match my Austin income?
To maintain the same purchasing power, a salary of $100,000 in Austin, TX is equivalent to roughly $94,935 in Carmel, IN (using the BEA Regional Price Parity ratio). Use the salary calculator above for any income amount.
Data last updated: December 1, 2024 · Sources: US Census ACS, BEA RPP, BLS OEWS, HUD FMR, EPA AirNow, Tax Foundation · Methodology