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Living in Indiana · 2026

Is $40,000 enough to live in Indiana?

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

Statewide verdict:Comfortable

Monthly take-home

$2,752

Avg monthly expenses

$2,110

Avg monthly surplus

$642

Savings potential

~23%

After-tax take-home in Indiana

Gross salary$40,000
Federal income tax− $2,694
State income tax− $1,220
Social Security− $2,480
Medicare− $580
Annual take-home$33,026
Effective tax rate17.44%

How $40,000 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

Comfortable
Rent (1BR)
$1,200
Food
$418
Transport
$168
Utilities
$158
Healthcare
$192
Total: $2,136/mo
Surplus: $616/mo
Rent burden: 43.6% — High (35–50%)
Full Indianapolis analysis →

Fort Wayne

COL index: 0.91× national avg

Comfortable
Rent (1BR)
$1,050
Food
$396
Transport
$159
Utilities
$150
Healthcare
$182
Total: $1,937/mo
Surplus: $815/mo
Rent burden: 38.2% — High (35–50%)
Full Fort Wayne analysis →

Evansville

COL index: 0.85× national avg

Comfortable
Rent (1BR)
$950
Food
$387
Transport
$149
Utilities
$140
Healthcare
$170
Total: $1,796/mo
Surplus: $956/mo
Rent burden: 34.5% — Manageable (25–35%)
Full Evansville analysis →

South Bend

COL index: 0.88× national avg

Comfortable
Rent (1BR)
$1,000
Food
$396
Transport
$154
Utilities
$145
Healthcare
$176
Total: $1,871/mo
Surplus: $881/mo
Rent burden: 36.3% — High (35–50%)
Full South Bend analysis →

Carmel

COL index: 1.10× national avg

Manageable
Rent (1BR)
$1,450
Food
$475
Transport
$193
Utilities
$182
Healthcare
$220
Total: $2,520/mo
Surplus: $232/mo
Rent burden: 52.7% — Unaffordable (> 50%)
Full Carmel analysis →

Bloomington

COL index: 1.08× national avg

Manageable
Rent (1BR)
$1,400
Food
$418
Transport
$189
Utilities
$178
Healthcare
$216
Total: $2,401/mo
Surplus: $351/mo
Rent burden: 50.9% — Unaffordable (> 50%)
Full Bloomington analysis →

50 / 30 / 20 Budget Planner

Based on your monthly take-home of $2,752 ($33,024/yr)

Needs 50%Wants 30%Savings 20%
Needs50%

$1,376

per month

  • ›Rent / mortgage
  • ›Groceries
  • ›Utilities
  • ›Insurance
  • ›Minimum debt payments
  • ›Transportation
Wants30%

$826

per month

  • ›Dining out
  • ›Streaming services
  • ›Gym
  • ›Hobbies
  • ›Travel
  • ›Shopping
Savings20%

$550

per month

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

Needs / year

$16,512

Wants / year

$9,907

Savings / year

$6,605

Salary Intelligence

Below comfortable level in Indianapolis

Rent would consume 44% of take-home income — above the 35% stress threshold. A higher salary or lower-cost housing is needed for financial stability in this city.

Lifestyle score: 5.4/10 (Fair)

Lifestyle Assessment

A $40,000 salary comfortably supports a fair single lifestyle in Indianapolis, Indiana, with approximately $616/month (~22% of take-home) available for savings — meeting or exceeding the recommended 20% savings rate.

Purchasing Power

Indianapolis is near the national cost-of-living average (index: 0.96). $40,000 here is roughly equivalent to $77,083 in San Francisco or $36,667 in an affordable city like Birmingham.

State & National Benchmark

$40,000 is slightly above the Indiana individual median of $38,900 (+3%). The state household median is $67,173.

State individual median

$38,900

+3%

State household median

$67,173

-40%

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)

$40,000 vs. Indiana income benchmarks

Individual median (Indiana)

$38,900

+3% vs. this salary

Household median (Indiana)

$67,173

-40% 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
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Reviewed by

Finance Editor

CPA, 10+ years in personal finance

Data Sources

Data updated monthly using government datasets.