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Cost of Living: Indianapolis, IN vs Louisville, KY

A data-driven comparison of housing, groceries, transportation, taxes, job market and more. See which city gives you more for your money.

1.1% Louisville, KY is more expensive overall
2.5% 2.5% more expensive housing
0.0% 0.0% cheaper groceries
Updated April 2026 · Data: Bureau of Labor Statistics, U.S. Census Bureau National average = 100

At a Glance

🏠 Housing 2.5% more
Indianapolis
80
Louisville
82
🛒 Groceries ~Same
Indianapolis
95
Louisville
95
🚗 Transportation ~Same
Indianapolis
98
Louisville
98
🏥 Healthcare 2.1% cheaper
Indianapolis
96
Louisville
94
⚡ Utilities 3.1% more
Indianapolis
97
Louisville
100

Detailed Breakdown

Category Indianapolis, IN Louisville, KY Difference
Overall Cost Index9192~Same
Housing80822.5% more
Median 1BR Rent$1,050$1,0004.8% less
Median Home Price$230,000$225,0002.2% less
Groceries9595~Same
Transportation9898~Same
Healthcare96942.1% less
Utilities971003.1% more

Tax Comparison

Tax Type Indianapolis, IN Louisville, KY
State Income Tax3.05%4.00%
State Sales Tax7.00%6.00%
Avg Property Tax Rate0.75%0.78%
Estate / Inheritance TaxNoneNone

What You'd Need to Earn

Indianapolis, IN
$60,000
Median household income
Louisville, KY
$60,000
Median household income
⚠️ Heads up: Louisville costs more but median income is only slightly higher. You may need to earn more to maintain the same standard of living.

Salary Equivalent Calculator

Find out what you'd need to earn in Louisville to maintain your Indianapolis lifestyle.

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Based on overall cost index: Indianapolis (91) vs Louisville (92). This is an estimate for comparison purposes.

Job Market Snapshot

Unemployment Rate
Indianapolis3.9%
Louisville4.0%
Job Growth (YoY)
Indianapolis2.6%
Louisville2.3%
Top Industries
IndianapolisPharma, Logistics, Motorsports
LouisvilleHealthcare, Manufacturing, Logistics

Quality of Life

Avg Commute
Indianapolis24 min
Louisville23 min
Walk Score
Indianapolis31
Louisville36
Air Quality (AQI)
Indianapolis42
Louisville46
Avg Temperature
Indianapolis53°F
Louisville57°F
Population
Indianapolis887,642
Louisville633,045

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Planning Your Move?

Here are some helpful resources if you're considering relocating.

🏠 Find ApartmentsBrowse rentals in Indianapolis and Louisville → 🚚 Get Moving QuotesCompare prices from top movers → 📈 Check Home ValuesSee real estate trends in both cities → 💼 Search JobsFind open positions in Louisville →

Compare Other Cities

Indianapolis vs Austin → Indianapolis vs Denver → Indianapolis vs Nashville → Louisville vs Raleigh → Louisville vs Portland → Louisville vs Phoenix →

Frequently Asked Questions

Is Indianapolis or Louisville cheaper to live in?+
Indianapolis is the more affordable option overall. The biggest difference is in housing costs, where the gap is about 2.5%. Day-to-day expenses like groceries and transportation are closer between the two cities.
How much is rent in Indianapolis vs Louisville?+
A typical one-bedroom apartment costs around $1,050/month in Indianapolis and $1,000/month in Louisville — a difference of about $50 per month.
Which city has lower taxes, Indianapolis or Louisville?+
Indiana has a state income tax of 3.05% and sales tax of 7.00%. Kentucky has a state income tax of 4.00% and sales tax of 6.00%. Consider all tax types together when evaluating total tax burden, as states with no income tax often compensate with higher sales or property taxes.
Can I afford to move from Indianapolis to Louisville?+
Median household income in Indianapolis is $60,000 compared to $60,000 in Louisville. Use the salary calculator above to see what you'd need to earn to maintain your current standard of living.
What about buying a home in Indianapolis vs Louisville?+
The median home price in Indianapolis is $230,000 versus $225,000 in Louisville — a difference of $5,000. Property tax rates also differ: Indiana averages 0.75% while Kentucky averages 0.78%.