Moving to Indiana
New residents have 60 days to get an Indiana driver license and must register a car within 60 days. Prices are 6.7% below the U.S. average, and a single filer earning $100,000 pays about $4,554 in Indiana state and county income tax. 69,372 households moved here from other states in 2022–2023, most often from Illinois and Florida.
New resident checklist for Indiana
Driver license
Within 60 days; with a valid out-of-state license only a vision screening is needed (knowledge exam waived since 2019); expired license requires knowledge exam. Bring proof of identity, your Social Security number and two proofs of your Indiana address.
Vehicle title and registration
Title and register within 60 days or pay an administrative penalty; VIN inspection required (free at BMV branch, or up to $5 by law enforcement). No emissions testing required statewide. Switch your auto insurance to an Indiana policy.
Taxes or fees on a car you bring: No sales tax for new residents transferring a title from their prior state of residence.
Annual registration: $21.35 passenger registration fee plus annual excise tax based on vehicle value class (original MSRP) and age; some counties add excise/wheel tax.
Extra yearly fee for an electric vehicle: $242.
Establishing residency
Residency begins when you move to Indiana to live; you must present proof of Indiana residency when applying. Residency also decides where you pay income tax in the year you move; see taxes the year you move.
Your first-month checklist in Indiana
- Register to vote at your new address.
- Update your address with the IRS (Form 8822), your employer and your bank.
- Make sure your employer withholds Indiana income tax from your move date.
- Set up utilities and get renters or homeowners insurance. Owners with a mortgage here paid a median $1,304 a year for homeowners insurance in 2024 (Census ACS); premiums have risen in most states since, so get quotes.
- Keep your lease or closing papers and your license date as proof of when you became a resident.
Still planning the move itself? The moving out of state checklist covers the weeks before you go, and the moving timeline turns your move date into dated deadlines. Our guide to moving with pets covers vet records, travel and local pet rules. Shipping a car? See shipping a car to another state, or take the Where should I move? quiz.
Official site: in.gov. Sources: in.gov (2), in.gov (3), in.gov (4). Reviewed 2026-09-25. Rules and fees change; confirm with the Indiana motor vehicle agency before you go.
Compare your move to Indiana
Pick the state you're leaving and your salary to see your take-home pay, rent and the salary that keeps your buying power the same in Indiana.
Equal salary in IN: $78,100
To keep the same lifestyle, you need about $78,100 in Indiana to match $85,000 in Illinois ($6,900 less), after 2026 taxes and local prices.
Single filer, W-2 salary, standard deduction.
These changes cover taxes, housing and electricity. Food, transport, healthcare, other spending and one-time moving costs are excluded. They are not total savings. State medians may differ from your neighborhood and current quotes.
| Tax on $85,000 | Illinois | Indiana |
|---|---|---|
| Federal income tax | $9,870 | $9,870 |
| Social Security + Medicare | $6,503 | $6,503 |
| State income tax | $4,063 | $3,864 |
| State payroll programs (UI, disability, paid leave, transit) | $0 | $0 |
| Take-home pay | $64,565 | $64,764 |
Full reports for the most common moves to Indiana: Illinois to Indiana, Florida to Indiana, Kentucky to Indiana, Ohio to Indiana, Michigan to Indiana and Texas to Indiana.
Living in Indiana: costs, taxes and risk
Of the 51 (the 50 states and D.C.), Indiana is in the best 10 for health premiums, cost to own a home and car insurance, and in the worst 10 for household income.
- Median rent
- $1,104/mo U.S. $1,487
- Cost to own the median home
- $1,548/mo U.S. $2,298
- Take-home on $100,000
- $74,626 $453 less than in the median state
- Property tax (effective)
- 0.74% median $1,798/yr
- FEMA risk score
- 72.5 of 100 Above average for U.S. counties
- Moved in from other states
- 69,372 households, IRS 2022–2023
Pros and cons of living in Indiana
How Indiana ranks among all 51 (the 50 states and D.C.) on 11 measures of costs, taxes, risk and income. Top 10 means among the 10 best for someone moving in, Bottom 10 among the 10 worst.
Where Indiana ranks best
- Top 5 Lowest Marketplace health premiums: $474 a month for a benchmark plan at age 40, before subsidies (KFF 2026), 5th lowest of 51.
- Top 10 Lowest cost to own a home: $1,548 a month for the median home with 20% down, 8th lowest of 51.
- Top 10 Lowest car insurance costs: $926 a year per car on average (NAIC 2023), 9th lowest of 51.
Where Indiana ranks worst
- Bottom 10 Lowest household incomes: $71,959 median household income (Census ACS 2024), 10th lowest of 51.
Measures: state income tax, overall prices, rent, cost to own a home, property tax rate, homeowners insurance, electric bills, car insurance, health premiums, natural hazard risk, household income. State income tax is for a single filer earning $100,000 under 2026 rules, including the average county income tax in Indiana and Maryland. Ties share a rank.
Where new Indiana residents come from
In the latest IRS migration data (2022–2023), 69,372 households filed their taxes in Indiana after filing in another state the year before. Illinois sent the most, 12,570 households (18% of the total). Indiana lost a net 1,268 households to other states that year.
Five-year trend
Moves to Indiana from other states peaked in 2020–21 at 69,485 households, then held roughly steady to 69,372 in 2022–23, up 13% from 2018–19. Indiana gained households from other states on net in two of the five years.
IRS SOI state-to-state migration files, tax years 2018–19 to 2022–23. Net gain or loss by year: 2018–19 −1,002, 2019–20 +1,318, 2020–21 +3,189, 2021–22 −390, 2022–23 −1,268.
Cost of living in Indiana vs the U.S.
Overall prices in Indiana are 6.7% below the U.S. average, 18th cheapest of 51. The widest gap is in housing (73.9), 26% below the U.S. level.
The vertical line marks the U.S. average (100). BEA Regional Price Parities 2024.
- Average electric bill
- $133/mo U.S. $142
- Car insurance, per car
- $926/yr U.S. $1,282
- Health plan, age 40
- $474/mo U.S. $625
EIA 2024 average residential bills, NAIC 2023 average auto insurance expenditure, KFF 2026 benchmark silver Marketplace premium before subsidies.
Taxes in Indiana: take-home pay at three incomes
Indiana taxes wages, and counties add their own income tax (the figures use the average county rate). Here is what a single filer keeps after 2026 federal and state taxes, compared with the middle of all 51.
| Salary | IN + county tax | Take-home | vs. median state |
|---|---|---|---|
| $50,000 | $2,254 | $40,101 | -$677 |
| $100,000 | $4,554 | $74,626 | -$453 |
| $150,000 | $6,854 | $106,937 | -$650 |
Single filer, 2026 tax rules, standard deduction. Take-home is after federal income tax, Social Security, Medicare and Indiana income taxes. "vs. median state" is the difference from the median take-home of all 51 at the same salary. For married filing jointly, change the filing status in the calculator above.
The statewide sales tax rate is 7% before any local sales taxes. Homeowners pay a median $1,798 a year in property tax, 0.74% of the median home value (property tax by county). Retiring? See how Indiana taxes Social Security and pensions. Moving mid-year? Read about taxes the year you move.
Cities in Indiana: where a paycheck goes furthest
Of the 2 Indiana metro areas we cover, Fort Wayne is the best value: about $73,200 there buys what $75,000 buys in an average-priced area with no state income tax. Indianapolis takes the most, $76,600.
| Metro area | Salary to match $75k | Price level | Median rent | Median home |
|---|---|---|---|---|
| Fort Wayne | $73,200 | 92.6 | $1,056 | $245,800 |
| Indianapolis | $76,600 | 95.7 | $1,273 | $291,400 |
Salary to match $75k: the pay that leaves the same after-tax, price-adjusted income as $75,000 in an area at U.S. average prices with no state income tax, single filer, including the principal city's own income tax where it has one. BEA 2024 price levels (U.S. = 100) and Census ACS 2024 rent and home values for each metro area.
Parts of Indiana also belong to the Chicago, Cincinnati and Louisville metro areas, which are centered outside Indiana.
Housing and home insurance in Indiana
| Measure | Indiana | U.S. |
|---|---|---|
| Median rent (monthly) | $1,104 | $1,487 |
| Median home value | $243,500 | $360,600 |
| Monthly cost to own the median home (20% down) | $1,548 | $2,298 |
| Income needed to buy the median home | $66,342 | $98,486 |
| Median property tax (yearly) | $1,798 | $3,211 |
| Homeowners insurance (yearly median, homes with a mortgage) | $1,304 | $1,450 |
Census ACS 2024 rent, home value and property tax, and ACS 2024 homeowners insurance. Cost to own: principal and interest at the Freddie Mac 30-year average (6.95%) with 20% down, plus the median property tax and the median homeowners insurance paid by owners with a mortgage. Premiums have risen since 2024, especially in high-risk areas, so get quotes. See buying a home in Indiana for other down payments.
Natural disaster risk in Indiana
Indiana's population-weighted score on FEMA's National Risk Index is 72.5 of 100, above average for U.S. counties and 15th safest of 51. Expected losses from natural hazards average about $350 per resident a year, and about 22% of residents live in counties FEMA rates relatively high or very high.
The vertical line marks the middle of U.S. counties (50).
See disaster risk for every Indiana county and how to check a home's risk before you move.
Frequently asked questions
Where do people moving to Indiana come from?
In IRS migration data for 2022–2023, 69,372 households moved to Indiana from other states. The most came from Illinois (12,570 households), Florida (7,213) and Kentucky (5,940).
What are the pros and cons of living in Indiana?
Where Indiana ranks best among the 50 states and D.C.: lowest Marketplace health premiums, 5th lowest of 51; lowest cost to own a home, 8th lowest of 51; lowest car insurance costs, 9th lowest of 51. Where it ranks worst: lowest household incomes, 10th lowest of 51.
Is Indiana expensive to live in?
Overall prices in Indiana are 6.7% below the U.S. average (BEA price level 93.3, 2024), 18th cheapest of 51. Median rent is $1,104 a month and the median home is worth $243,500.
How long do I have to get an Indiana driver license after moving?
60 days after becoming a resident. Within 60 days; with a valid out-of-state license only a vision screening is needed (knowledge exam waived since 2019); expired license requires knowledge exam.
How long do I have to register my car in Indiana?
60 days. Title and register within 60 days or pay an administrative penalty; VIN inspection required (free at BMV branch, or up to $5 by law enforcement). No emissions testing required statewide.
Do new residents pay tax on a car brought to Indiana?
No sales tax for new residents transferring a title from their prior state of residence.
What makes me an Indiana resident?
Residency begins when you move to Indiana to live; you must present proof of Indiana residency when applying.