State Comparison
Kentucky vs Indiana
Side-by-side comparison of 16 financial metrics including taxes, housing costs, cost of living, wages, and insurance — powered by verified government data.
Overall Score
Cost of Living
Housing
Taxes
Income & Employment
Business
Insurance & Living
Key Takeaways
- 1
Indiana leads in 8 of 16 financial metrics, making it the more favorable state overall.
- 2
Housing: Median home prices are $195,000 in Kentucky vs $225,000 in Indiana — a $30,000 difference.
- 3
Taxes: Kentucky has a 4% top income tax rate while Indiana has a 3.05% top rate. Property tax rates are 0.86% vs 0.85%.
- 4
Cost of Living: Kentucky's index is 90.3 and Indiana's is 90.5 (national average = 100).
Run the Numbers
Use our free calculators with real Kentucky and Indiana data to model your specific scenario.
Frequently Asked Questions
Is Kentucky or Indiana more affordable?
Kentucky has a lower cost of living index (90.3) compared to Indiana (90.5), where 100 is the national average. However, affordability depends on your specific situation — compare housing, taxes, and income together for a complete picture.
Which state has lower taxes — Kentucky or Indiana?
Overall, Kentucky has a lower combined tax burden. Kentucky has a 4% top income tax, 6% sales tax, and 0.86% property tax. Indiana has a 3.05% top income tax, 7% sales tax, and 0.85% property tax.
What are housing costs in Kentucky vs Indiana?
The median home price in Kentucky is $195,000 compared to $225,000 in Indiana. For renters, a 2-bedroom apartment averages $860/month in Kentucky vs $925/month in Indiana.
Which state is better for starting a business — Kentucky or Indiana?
LLC filing costs are $40 in Kentucky vs $95 in Indiana, with annual fees of $15 and $32 respectively. Kentucky's 4% top tax rate compared to Indiana's 3.05% rate may also factor into your decision.
Should I move from Kentucky to Indiana?
It depends on your priorities. Indiana wins in 8 of 16 metrics we compared. Use our free calculators to model your specific financial scenario — including salary, property tax, and cost of living for each state.
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Related Comparisons
Comparing Kentucky and Indiana
When deciding between living in Kentucky or Indiana, the financial picture goes beyond just one metric. This comparison analyzes 16 key financial indicators sourced from the U.S. Census Bureau, Tax Foundation, HUD Fair Market Rent data, and Bureau of Labor Statistics to give you a comprehensive overview.
Kentucky (KY) has a median household income of $55,573 with a cost of living index of 90.3. Indiana (IN) has a median household income of $61,944 with a cost of living index of 90.5.
These numbers are estimates. Individual circumstances vary based on location within each state, family size, profession, and lifestyle. Use our free Kentucky calculator or Indiana calculator to model your specific financial scenario.
Data sources: Census Bureau ACS, Tax Foundation, HUD FMR, BLS. Last verified January 2026. Calculators provide estimates only — consult a qualified professional for financial advice.