Quick answer
Indiana has lower average 1BR rent ($1,050/mo vs $1,368/mo). State income tax: Texas (None) vs Indiana (3.05%) — on a $120K salary that's $3,660/year difference.
State Comparison · 2026
Indiana vs Texas
Side-by-side on state income tax, rent, home prices, climate, and top metros — with specific dollar numbers for every claim.
Last updated: April 23, 2026
Indiana vs Texas at a Glance
| Metric | Indiana | Texas |
|---|---|---|
| Avg 1BR rent (major metros) | $1,050 ✓ | $1,368 |
| Avg median home price | $240K ✓ | $372K |
| Cheapest city | Indianapolis ($1,050) ✓ | San Antonio ($1,180) |
| Priciest city | Indianapolis ($1,050) | Austin ($1,650) |
| State income tax | 3.05% | None ✓ |
| Avg walkability | 31/100 | 41/100 ✓ |
| Cities tracked | 1 | 5 |
✓ marks the lower or more favorable value. Averages use the major metros we track in each state.
State Income Tax: Real Savings
What the rate gap actually looks like in your paycheck. Lower rate: Texas (None).
Salary $80K
$2,440
/year saved in Texas
Salary $120K
$3,660
/year saved in Texas
Salary $200K
$6,100
/year saved in Texas
Calculation uses the effective state rate difference × gross salary. Doesn't include property tax, sales tax, or federal impact.
Deep Dive: Each State
Indiana (IN)
Tax reality
Indiana has a flat 3.05% state income tax (one of the lowest flat rates in the US). Property tax is moderate (~0.8% effective with a 1% cap on residential assessed value). Sales tax 7% state (no local add-on). Indiana is genuinely low-tax.
Top cities (1 tracked)
Top drawbacks
- ✕Weather is distinctly Midwestern — cold gray winters (Indianapolis gets 20+ inches of snow and regularly below freezing November through March), humid summers, tornado risk in spring.
- ✕Beyond Indianapolis, the job market is heavily manufacturing-dependent. Auto parts, steel, and other industrial sectors have been declining; rural Indiana has ongoing economic pressures.
- ✕Indianapolis sprawls significantly. Outside the downtown Mile Square and Broad Ripple neighborhoods, you'll need a car.
Texas (TX)
Tax reality
Texas has no state income tax — on $100K that's roughly $5,000-$9,000/year you keep vs California. The catch: Texas property tax averages 1.6-2.3% annually, among the highest in the US. For renters, it's a pure win. For homeowners, a $450K home costs you $7,200-$10,300/year in property tax.
Top cities (5 tracked)
Top drawbacks
- ✕Summer heat is genuinely dangerous — 100°F+ days stretch from June through September, and the grid has failed multiple times (Uri 2021, summer 2023). Outdoor time is limited to early morning or after sundown.
- ✕Property taxes are the trade-off for no income tax. On a $450K home you'll pay $7,500-$10,500/year in property taxes — the highest in the country alongside New Jersey and Illinois.
- ✕Car dependency is near-total outside a few Austin and Houston neighborhoods. You will drive everywhere, including to the grocery store. Expect $400-$600/mo in all-in car costs.
Frequently Asked Questions
Is Indiana or Texas cheaper to live in?
Indiana has lower average 1BR rent across major metros — $1,050/mo vs $1,368/mo in Texas, a $318/mo difference. Home prices: Indiana median is $240K vs $372K.
Indiana vs Texas: which has lower state income tax?
Texas has lower state income tax (None) vs 3.05% in Indiana. On an $80K salary that's $2,440/year in savings. On $200K, savings grow to $6,100/year.
Should I move from Indiana to Texas?
Indiana has a flat 3.05% state income tax (one of the lowest flat rates in the US). Property tax is moderate (~0.8% effective with a 1% cap on residential assessed value). Sales tax 7% state (no local add-on). Indiana is genuinely low-tax.
What are the best cities in Indiana vs Texas?
Indiana's largest metros include Indianapolis. Texas's largest metros include Austin, Houston, Dallas. Cost of living varies significantly within each state — a Indiana suburb can be 40% cheaper than its flagship city, and vice versa.