Is Phoenix, AZ or Indianapolis, IN cheaper on a $120,000 salary?

Indianapolis, IN leaves you more: $7,022/yr. On $120,000, Phoenix, AZ leaves $65,002/yr in pocket (state tax $3,000, housing $22,418) vs Indianapolis, IN's $72,024 (state tax $3,600, housing $14,796).

The gap is driven mostly by state income tax (Arizona: 2.50% vs Indiana: 3%) and housing.

WhereCanIAfford › Take-home › Phoenix, AZ vs Indianapolis, IN

Phoenix, AZ vs Indianapolis, IN: cost of living on $120,000

Indianapolis, IN +$7,022/yr On $120,000, Phoenix, AZ leaves $65,002/yr in pocket vs Indianapolis, IN's $72,024 — after state income tax and housing.

Where the money goes

On $120,000	Phoenix, AZ	Indianapolis, IN
Federal + FICA (est.)	$29,580	$29,580
State income tax	$3,000 (2.50%)	$3,600 (3%)
After-tax income	$87,420	$86,820
− Housing/yr (Zillow)	$22,418	$14,796
Real money in pocket	$65,002	$72,024

Verified 2026-06-23 · State tax: Tax Foundation, “State Individual Income Tax Rates and Brackets, 2025” + state revenue departments. Modeled as an effective planning rate for a typical $80k–$160k filer — not a full bracket engine. · Housing from Zillow ZHVI 2026-05.

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FAQ

Is Phoenix, AZ or Indianapolis, IN cheaper?: On $120,000, Indianapolis, IN — by $7,022/yr in real take-home.
What's the biggest driver?: State income tax (Arizona 2.50% vs Indiana 3%) and housing cost.

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