Median rent is 17% lower in Indianapolis ($1,156/mo vs $1,397/mo). Buying is cheaper in Indianapolis, where the median home runs $224,800 versus $243,100. Households earn more in Indianapolis ($66,219 vs $61,953 a year). Taken together, Indianapolis is the more affordable choice with a cost index of 94.7 against 102.4 — about 8% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Indianapolis, IN.
Cost of living verdict
Indianapolis is 8% cheaper overall
Cost of Living Index: 94.7 in Indianapolis vs 102.4 in Philadelphia (US national average = 100)
City A
Indianapolis, IN
City B
Philadelphia, PA
How much would you need to earn in Philadelphia, PA to maintain your standard of living from Indianapolis, IN?
Equivalent salary in Philadelphia, PA
$81,112
You'd need $6,112 more (8% higher).
Based on BEA Regional Price Parity (cost index) for each metro area. This estimates overall purchasing power; it does not account for taxes or take-home pay differences.
Metric
Indianapolis
Indiana
Philadelphia
Pennsylvania
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: Census ACS, BEA, HUD Fair Market Rents, EPA AirNow, Tax Foundation
Median rent is modestly lower in Indianapolis at $1,156/mo compared to $1,397/mo in Philadelphia (17% gap). Median home values are within 8% of each other: $224,800 in Indianapolis and $243,100 in Philadelphia.
1BR Fair Market Rent
2BR Fair Market Rent
BLS OEWS 2023 — metro-level data
State tax data is not yet available for these cities.
Indianapolis
Income tax: N/A
Sales tax: N/A
Philadelphia
Income tax: N/A
Sales tax: N/A
Indianapolis has cleaner air on average: 48.0 AQI (Good) compared to 54.0 AQI (Moderate) in the other city. Lower AQI means cleaner, healthier air.
Pick Indianapolis if you prioritize lower overall cost of living (index 94.7 vs 102.4).
Pick Indianapolis if you prioritize higher median household income ($66,219/yr).
Pick Indianapolis if you prioritize cheaper rent ($1,156/mo median).
Pick Indianapolis if you prioritize cleaner air quality (avg AQI 48.0).
Is Indianapolis cheaper than Philadelphia?
Indianapolis is cheaper overall, with a cost of living index of 94.7 versus 102.4 (US average = 100). That means prices run about 8% lower in Indianapolis.
How much is rent in Indianapolis vs Philadelphia?
Median rent is $1,156/mo in Indianapolis, IN and $1,397/mo in Philadelphia, PA. Indianapolis, IN has the lower rent by about 17%.
Which has higher salaries — Indianapolis or Philadelphia?
Median household income is $66,219 in Indianapolis, IN and $61,953 in Philadelphia, PA. Indianapolis, 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?
Indianapolis, IN has better air quality on average: 48.0 AQI versus 54.0 AQI. Both are EPA AirNow annual averages; lower is better.
Which has lower taxes — Indianapolis or Philadelphia?
State tax data is not yet available for one or both cities.
What salary do I need in Philadelphia to match my Indianapolis income?
To maintain the same purchasing power, a salary of $100,000 in Indianapolis, IN is equivalent to roughly $108,149 in Philadelphia, PA (using the BEA Regional Price Parity ratio). Use the salary calculator above for any income amount.
Data last updated: December 1, 2026 · Sources: US Census ACS, BEA RPP, BLS OEWS, HUD FMR, EPA AirNow, Tax Foundation · Methodology
