Is $25,000 a good salary in Indiana?

$25,000 in Indiana provides a monthly take-home of approximately $1,781 after taxes. Across major Indiana cities, this salary is rated very tight, with an average monthly surplus of $-329.

What is the cost of living on $25,000 in Indiana?

The average monthly living cost across major Indiana cities is approximately $2,110 for a single adult (rent, food, transport, utilities, healthcare). On $25,000 take-home pay of $1,781/month, you would have roughly $-329/month remaining.

Living in Indiana · 2026

Is $25,000 enough to live in Indiana?

Single adult · IN · 2026 tax brackets · Real cost-of-living data

Statewide verdict:Very tight

Monthly take-home

$1,781

Avg monthly expenses

$2,110

Avg monthly surplus

$-329

Savings potential

~0%

After-tax take-home in Indiana

Gross salary$25,000

Federal income tax− $950

State income tax− $763

Social Security− $1,550

Medicare− $363

Annual take-home$21,374

Effective tax rate14.5%

How $25,000 feels in Indiana cities

Rent: HUD FMR 2026 · Food: USDA Low-Cost Plan × COL · Transport/Utilities/Healthcare: BLS CES × COL

Indianapolis

COL index: 0.96× national avg

Very tight

Rent (1BR)

$1,200

Food

$418

Transport

$168

Utilities

$158

Healthcare

$192

Total: $2,136/mo

Surplus: $-355/mo

Rent burden: 67.4% — Unaffordable (> 50%)

Full Indianapolis analysis →

Fort Wayne

COL index: 0.91× national avg

Very tight

Rent (1BR)

$1,050

Food

$396

Transport

$159

Utilities

$150

Healthcare

$182

Total: $1,937/mo

Surplus: $-156/mo

Rent burden: 59.0% — Unaffordable (> 50%)

Full Fort Wayne analysis →

Evansville

COL index: 0.85× national avg

Very tight

Rent (1BR)

$950

Food

$387

Transport

$149

Utilities

$140

Healthcare

$170

Total: $1,796/mo

Surplus: $-15/mo

Rent burden: 53.3% — Unaffordable (> 50%)

Full Evansville analysis →

South Bend

COL index: 0.88× national avg

Very tight

Rent (1BR)

$1,000

Food

$396

Transport

$154

Utilities

$145

Healthcare

$176

Total: $1,871/mo

Surplus: $-90/mo

Rent burden: 56.1% — Unaffordable (> 50%)

Full South Bend analysis →

Carmel

COL index: 1.10× national avg

Not recommended

Rent (1BR)

$1,450

Food

$475

Transport

$193

Utilities

$182

Healthcare

$220

Total: $2,520/mo

Surplus: $-739/mo

Rent burden: 81.4% — Unaffordable (> 50%)

Full Carmel analysis →

Bloomington

COL index: 1.08× national avg

Not recommended

Rent (1BR)

$1,400

Food

$418

Transport

$189

Utilities

$178

Healthcare

$216

Total: $2,401/mo

Surplus: $-620/mo

Rent burden: 78.6% — Unaffordable (> 50%)

Full Bloomington analysis →

50 / 30 / 20 Budget Planner

Based on your monthly take-home of $1,781 ($21,372/yr)

Needs 50%Wants 30%Savings 20%

Needs50%

$891

per month

›Rent / mortgage
›Groceries
›Utilities
›Insurance
›Minimum debt payments
›Transportation

Wants30%

$534

per month

›Dining out
›Streaming services
›Gym
›Hobbies
›Travel
›Shopping

Savings20%

$356

per month

›Emergency fund
›401(k) / IRA
›Investments
›Down payment fund
›Debt payoff (extra)

Needs / year

$10,686

Wants / year

$6,412

Savings / year

$4,274

Salary Intelligence

Financial pressure in Indianapolis

Rent alone would take 67% of take-home income. This salary creates significant financial pressure in this city — a $48,000 annual income or lower rent is needed to reach affordability.

Lifestyle score: 2.1/10 (Difficult)

Lifestyle Assessment

A $25,000 salary does not fully cover typical living expenses for a single adult in Indianapolis, Indiana. Monthly costs exceed take-home pay by $355, indicating this income is insufficient for an independent lifestyle here without additional income or reduced spending.

Purchasing Power

Indianapolis is near the national cost-of-living average (index: 0.96). $25,000 here is roughly equivalent to $48,177 in San Francisco or $22,917 in an affordable city like Birmingham.

State & National Benchmark

$25,000 is 36% below the Indiana individual median of $38,900. Consider negotiating a higher salary or exploring higher-paying roles in this state.

State individual median

$38,900

-36%

State household median

$67,173

-63%

Tax reduction strategies

Maximize 401(k) Contributions — Up to $5,170 in federal tax (22% bracket)

Contribute to a Traditional IRA — Up to $1,540 in federal tax (22% bracket)

$25,000 vs. Indiana income benchmarks

Individual median (Indiana)

$38,900

-36% vs. this salary

Household median (Indiana)

$67,173

-63% vs. this salary

Source: US Census Bureau ACS 2023

Related salary insights

Explore other salary levels in Indiana

$40,000 $60,000 $100,000 $150,000 $200,000 $300,000

Reviewed by

Finance Editor

CPA, 10+ years in personal finance

Data Sources

•Tax calculations: IRS federal tax tables
•Rent data: HUD Fair Market Rents
•Cost-of-living index: C2ER / ACCRA Cost of Living Index

Data updated monthly using government datasets.