State Comparison

Michigan 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

5
Michigan
MI
vs
of 16 metrics
11
Indiana
IN

Cost of Living

Cost of Living Index
MI: 91.4
IN: 90.5
IN

Housing

Median Home Price
MI: $235,000
IN: $225,000
IN
Median 2BR Rent
MI: $1,020/mo
IN: $925/mo
IN
Closing Costs
MI: 2.80%
IN: 2.50%
IN
Transfer Tax Rate
MI: 0.75%
IN: 0.00%
IN

Taxes

Property Tax Rate
MI: 1.38%
IN: 0.85%
IN
Top Income Tax Rate
MI: 4.25%
IN: 3.05%
IN
Sales Tax Rate
MI: 6.00%
IN: 7.00%
MI
Capital Gains Tax Rate
MI: 4.25%
IN: 3.05%
IN

Income & Employment

Median Household Income
MI: $63,202
IN: $61,944
MI
Minimum Wage
MI: $12.48/hr
IN: $7.25/hr
MI
Max Unemployment Benefit
MI: $362/wk
IN: $390/wk
IN

Business

LLC Filing Fee
MI: $50
IN: $95
MI
LLC Annual Fee
MI: $25
IN: $32
MI

Insurance & Living

Avg Car Insurance
MI: $2,470/yr
IN: $1,420/yr
IN
Avg Home Insurance
MI: $1,820/yr
IN: $1,540/yr
IN

Key Takeaways

  • 1

    Indiana leads in 11 of 16 financial metrics, making it the more favorable state overall.

  • 2

    Housing: Median home prices are $235,000 in Michigan vs $225,000 in Indiana — a $10,000 difference.

  • 3

    Taxes: Michigan has a 4.25% top income tax rate while Indiana has a 3.05% top rate. Property tax rates are 1.38% vs 0.85%.

  • 4

    Cost of Living: Michigan's index is 91.4 and Indiana's is 90.5 (national average = 100).

Run the Numbers

Use our free calculators with real Michigan and Indiana data to model your specific scenario.

Michigan Property Tax Calculator Indiana Property Tax Calculator Michigan Paycheck Calculator Indiana Paycheck Calculator Michigan Cost of Living Calculator Indiana Cost of Living Calculator

Frequently Asked Questions

Is Michigan or Indiana more affordable?

Indiana has a lower cost of living index (90.5) compared to Michigan (91.4), 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 — Michigan or Indiana?

Overall, Indiana has a lower combined tax burden. Michigan has a 4.25% top income tax, 6% sales tax, and 1.38% property tax. Indiana has a 3.05% top income tax, 7% sales tax, and 0.85% property tax.

What are housing costs in Michigan vs Indiana?

The median home price in Michigan is $235,000 compared to $225,000 in Indiana. For renters, a 2-bedroom apartment averages $1,020/month in Michigan vs $925/month in Indiana.

Which state is better for starting a business — Michigan or Indiana?

LLC filing costs are $50 in Michigan vs $95 in Indiana, with annual fees of $25 and $32 respectively. Michigan's 4.25% top tax rate compared to Indiana's 3.05% rate may also factor into your decision.

Should I move from Michigan to Indiana?

It depends on your priorities. Indiana wins in 11 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.

Related Comparisons

Illinois vs Indiana Illinois vs Michigan Ohio vs Michigan Ohio vs Indiana Kentucky vs Indiana

Comparing Michigan and Indiana

When deciding between living in Michigan 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.

Michigan (MI) has a median household income of $63,202 with a cost of living index of 91.4. 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 Michigan 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.