Alabama vs Indiana Cost of Living
Purchasing power
Your $75,000 is worth different amounts in each state
$85,131
in Alabama
$82,690
in Indiana
Each cell = 1% of purchasing power. Green = value, red = gap.
Spending breakdown
Estimated annual spending on a $75,000 salary
What things actually cost
Real dollar costs side by side
Category breakdown
| Category | Alabama | Indiana | Difference |
|---|---|---|---|
| Housing | 71.2 | 75.4 | -6% |
| Groceries | 97.5 | 99.2 | -2% |
| Utilities | 98.0 | 95.0 | +3% |
| Transportation | 90.5 | 101.0 | -10% |
| Healthcare | 91.2 | 96.3 | -5% |
| Dining & Misc | 95.1 | 95.8 | -1% |
| Overall | 88.1 | 90.7 | -3% |
Index values relative to national average (100). Positive difference = more expensive in Alabama.
What things actually cost
| Item | Alabama | Indiana | Difference |
|---|---|---|---|
| Median home price | $220,000 | $230,000 | $10,000 |
| Average 2BR rent | $997/mo | $1,056/mo | $59 |
| Gas price | $3.13/gal | $3.49/gal | $0.36 |
| Electric bill | $105/mo | $101/mo | +$5 |
| Infant childcare | $7,871/yr | $14,471/yr | $6,600 |
Salary equivalent: Alabama → Indiana
What a Alabama salary buys you in Indiana, adjusted for cost of living.
| Salary in Alabama | Equivalent in Indiana | Difference |
|---|---|---|
| $50,000 | $51,476 | $-1,476 |
| $75,000 | $77,213 | $-2,213 |
| $100,000 | $102,951 | $-2,951 |
| $150,000 | $154,427 | $-4,427 |
| $200,000 | $205,902 | $-5,902 |
Positive = your money goes further in Indiana. Based on overall COL index ratio.
Based on MERIC/C2ER 2025 composite indices. Dollar amounts from AAA, EIA, Zillow, and Child Care Aware.
Overview
Indiana is 3% more expensive than Alabama overall. Indiana has an index of 90.7 vs 88.1 for Alabama (national average = 100).
FAQ
Is it cheaper to live in Alabama or Indiana?
Alabama is cheaper to live in. Indiana is 3% more expensive overall. The biggest driver is housing — median home prices are $220,000 in Alabama vs $230,000 in Indiana.
Is Alabama cheaper than Indiana?
Yes, Alabama is 3% cheaper than Indiana overall based on the MERIC/C2ER cost-of-living index. Housing, groceries, and utilities all factor into the difference.
Is Indiana more expensive than Alabama?
Yes, Indiana is 3% more expensive than Alabama based on the MERIC/C2ER composite index. Housing is typically the largest factor in the difference.
What salary in Indiana equals $100,000 in Alabama?
To maintain the same purchasing power as a $100,000 salary in Alabama, you would need approximately $102,951 in Indiana. This is based on the overall cost-of-living index (88.1 vs 90.7).
How do housing costs compare between Alabama and Indiana?
Housing is cheaper in Alabama. Median home prices are $220,000 in Alabama vs $230,000 in Indiana — a $10,000 difference. Average 2-bedroom rent is $997/mo vs $1,056/mo.
What costs more in Alabama vs Indiana?
Transportation is 10% lower in Alabama (index 90.5 vs 101). Healthcare is 5% lower in Alabama (index 91.2 vs 96.3). Housing is 6% lower in Alabama (index 71.2 vs 75.4).
Is gas cheaper in Alabama or Indiana?
Gas averages $3.13/gallon in Alabama and $3.49/gallon in Indiana — a $0.36 difference per gallon.
Alabama vs Indiana cost of living — how do they compare?
Alabama has an overall cost-of-living index of 88.1 and Indiana has 90.7 (national average = 100). Indiana is 3% more expensive overall. Use the calculator above to see how this affects your specific salary.
How do taxes compare between Alabama and Indiana?
Cost of living is only part of the picture — state income taxes also affect your take-home pay. Alabama allows a full deduction of federal income taxes paid on state returns, which is unusual among states. Indiana has a flat state income tax of 2.95% for 2026, one of the lowest flat rates in the country. Use the Alabama vs Indiana paycheck comparison to see how a specific salary compares after federal and state taxes, FICA, and deductions.
Do I need to file state tax returns in Alabama and Indiana?
Alabama requires residents to file a state income tax return annually, typically due April 15. Indiana requires residents to file a state income tax return annually, typically due April 15. If you move between states mid-year, you typically file a part-year resident return in each state for the income earned while living there.
Where does this cost of living data come from?
Cost-of-living indices are from the MERIC/C2ER 2025 Annual Average. Dollar amounts use AAA gas prices (March 2025), EIA electricity rates (2024), Child Care Aware childcare costs (2024), Zillow home values (2024-2025), and BEA Regional Price Parities.
Related tools
- Alabama Cost of Living — Housing, groceries, gas, and more
- Indiana Cost of Living — Housing, groceries, gas, and more
- Alabama vs Indiana Paycheck Comparison — Compare take-home pay after taxes
- House Affordability in Alabama — How much house can you afford?
- House Affordability in Indiana — How much house can you afford?
- Alabama Tax Brackets — See 2026 marginal rates
- Indiana Tax Brackets — See 2026 marginal rates
- Alabama Mortgage Calculator — Estimate monthly payments with local rates
- Indiana Mortgage Calculator — Estimate monthly payments with local rates
- Alabama Bonus Tax Calculator — See how bonuses are taxed differently
- Indiana Bonus Tax Calculator — See how bonuses are taxed differently
- Gross-Up Calculator — Find the salary you need to hit a target take-home
- Salary to Hourly Converter — Convert annual salary to hourly rate
- Compare any two states
Based on MERIC/C2ER 2025 composite indices and publicly available price data. Cost of living varies significantly by metro area within a state. These are statewide averages.