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Cost of Living: Indianapolis, IN vs Memphis, TN

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

5.5% Memphis, TN is cheaper overall
12.5% 12.5% cheaper housing
3.2% 3.2% cheaper groceries
Updated April 2026 · Data: Bureau of Labor Statistics, U.S. Census Bureau National average = 100

At a Glance

🏠 Housing 12.5% cheaper
Indianapolis
80
Memphis
70
🛒 Groceries 3.2% cheaper
Indianapolis
95
Memphis
92
🚗 Transportation ~Same
Indianapolis
98
Memphis
96
🏥 Healthcare 6.2% cheaper
Indianapolis
96
Memphis
90
⚡ Utilities ~Same
Indianapolis
97
Memphis
98

Detailed Breakdown

Category Indianapolis, IN Memphis, TN Difference
Overall Cost Index91865.5% less
Housing807012.5% less
Median 1BR Rent$1,050$9509.5% less
Median Home Price$230,000$165,00028.3% less
Groceries95923.2% less
Transportation9896~Same
Healthcare96906.2% less
Utilities9798~Same

Tax Comparison

Tax Type Indianapolis, IN Memphis, TN
State Income Tax3.05%None (0%)
State Sales Tax7.00%7.00%
Avg Property Tax Rate0.75%0.56%
Estate / Inheritance TaxNoneNone

What You'd Need to Earn

Indianapolis, IN
$60,000
Median household income
Memphis, TN
$48,000
Median household income
⚠️ Heads up: Memphis costs more but median income is lower. 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 Memphis to maintain your Indianapolis lifestyle.

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Based on overall cost index: Indianapolis (91) vs Memphis (86). This is an estimate for comparison purposes.

Job Market Snapshot

Unemployment Rate
Indianapolis3.9%
Memphis4.8%
Job Growth (YoY)
Indianapolis2.6%
Memphis1.9%
Top Industries
IndianapolisPharma, Logistics, Motorsports
MemphisLogistics, Healthcare, Manufacturing

Quality of Life

Avg Commute
Indianapolis24 min
Memphis24 min
Walk Score
Indianapolis31
Memphis34
Air Quality (AQI)
Indianapolis42
Memphis44
Avg Temperature
Indianapolis53°F
Memphis63°F
Population
Indianapolis887,642
Memphis633,104

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Planning Your Move?

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

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

Compare Other Cities

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

Frequently Asked Questions

Is Indianapolis or Memphis cheaper to live in?+
Memphis is the more affordable option overall. The biggest difference is in housing costs, where the gap is about 12.5%. Day-to-day expenses like groceries and transportation are closer between the two cities.
How much is rent in Indianapolis vs Memphis?+
A typical one-bedroom apartment costs around $1,050/month in Indianapolis and $950/month in Memphis — a difference of about $100 per month.
Which city has lower taxes, Indianapolis or Memphis?+
Indiana has a state income tax of 3.05% and sales tax of 7.00%. Tennessee has a state income tax of None (0%) and sales tax of 7.00%. 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 Memphis?+
Median household income in Indianapolis is $60,000 compared to $48,000 in Memphis. 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 Memphis?+
The median home price in Indianapolis is $230,000 versus $165,000 in Memphis — a difference of $65,000. Property tax rates also differ: Indiana averages 0.75% while Tennessee averages 0.56%.