Indiana Salaries 2025
Manufacturing leader with America's lowest flat tax
Median Household Income
Indiana Salary Overview 2025
Indiana exemplifies Midwest value: solid wages, rock-bottom costs, and low taxes create exceptional purchasing power. The state's median household income of $62,400 sits below the national median, but Indiana's cost of living (90 index, 10% below average) combined with America's lowest flat income tax (3.05%) means workers keep more of what they earn.
The economy centers on advanced manufacturing, pharmaceuticals, logistics, and healthcare. Indiana leads the nation in manufacturing GDP share—the sector provides well-paying jobs requiring skills rather than degrees. Indianapolis has emerged as a legitimate mid-tier city with growing tech scene, professional sports, and improving urban amenities.
Eli Lilly, headquartered in Indianapolis, has announced massive manufacturing expansions for its diabetes and obesity drugs, creating thousands of high-paying jobs. Combined with established automotive (Subaru, Toyota, Honda suppliers), medical devices (Zimmer Biomet, Cook Medical), and logistics (FedEx, Amazon hubs), Indiana offers diverse opportunities. For comprehensive salary data, see salary trends 2025.
Indiana Salary Snapshot
| Metric | Indiana | National Average |
|---|---|---|
| Median Household Income | $62,400 | $74,580 |
| Mean Household Income | $80,500 | $97,300 |
| Per Capita Income | $33,000 | $37,638 |
| Minimum Wage (2025) | $7.25/hr (federal) | $7.25/hr (federal) |
| Cost of Living Index | 90 (10% below avg) | 100 |
| State Income Tax | 3.05% flat | Varies |
Salaries by Indiana Region
Indianapolis Metro – State's Hub
Median Household Income: $68,000
Indianapolis anchors Indiana's economy with diverse employment in pharma, healthcare, finance, and technology. Eli Lilly's global headquarters employs 11,000+ locally with massive expansion underway. Salesforce maintains a major hub (2,000+ employees from ExactTarget acquisition). Software engineers earn $80,000-$130,000, pharma scientists $85,000-$150,000, finance professionals $60,000-$130,000.
Downtown has transformed with sports venues, restaurants, and urban living options. Housing is remarkably affordable ($285,000 median) for a metro of 2 million. North suburbs (Carmel, Fishers) offer excellent schools and family lifestyle.
Fort Wayne – Manufacturing Center
Median Household Income: $55,000
Fort Wayne maintains strong manufacturing base with defense (General Dynamics, BAE Systems), medical devices, and automotive. Engineers $70,000-$110,000, skilled trades $45,000-$75,000. Very affordable ($200,000 median home) with improving downtown and quality of life.
Bloomington – University Town
Median Household Income: $42,000
Indiana University anchors Bloomington with education, research, and healthcare. Cook Medical (interventional devices) is a major employer. Faculty $65,000-$150,000, research positions $50,000-$100,000. College-town atmosphere with lower incomes reflecting student population.
South Bend / Elkhart – RV Capital
Median Household Income: $52,000
Elkhart manufactures 80%+ of U.S. RVs. Notre Dame adds education employment in South Bend. Manufacturing wages $40,000-$70,000, engineers $65,000-$100,000. Very affordable with some economic volatility tied to RV industry cycles.
Lafayette / West Lafayette
Median Household Income: $55,000
Purdue University and associated research/tech drive the economy. Strong engineering programs feed local employers. Subaru's only U.S. plant is in Lafayette (3,000+ employees). Faculty and research $60,000-$140,000, manufacturing $45,000-$80,000.
| Region | Median Income | Median Home | Key Industries |
|---|---|---|---|
| Indianapolis | $68,000 | $285,000 | Pharma, Tech, Healthcare, Finance |
| Carmel/Fishers | $115,000 | $420,000 | Professional Services, Tech |
| Fort Wayne | $55,000 | $200,000 | Defense, Manufacturing |
| Bloomington | $42,000 | $280,000 | Education, Medical Devices |
| South Bend/Elkhart | $52,000 | $180,000 | RV Manufacturing, Education |
Top Paying Industries in Indiana
Pharmaceuticals (Eli Lilly)
Eli Lilly's Indianapolis headquarters is the crown jewel of Indiana's economy. The company is investing $9 billion+ in new manufacturing facilities for diabetes and obesity drugs, creating 5,000+ jobs. Research scientists $90,000-$180,000, manufacturing engineers $80,000-$130,000, process technicians $50,000-$80,000. Lilly compensation includes strong benefits and stock.
Medical Devices
Indiana hosts significant medical device manufacturing: Zimmer Biomet (orthopedics) in Warsaw, Cook Medical in Bloomington, and numerous suppliers. Engineers $75,000-$130,000, quality specialists $55,000-$90,000, production managers $70,000-$110,000.
Automotive Manufacturing
Indiana's auto industry includes Subaru (Lafayette), Toyota (Princeton), Honda suppliers, and numerous tier 1/2/3 suppliers. Manufacturing engineers $70,000-$115,000, plant managers $100,000-$160,000, skilled trades $50,000-$85,000. Union and non-union opportunities.
Technology
Indianapolis tech scene has grown substantially. Salesforce (from ExactTarget), Infosys, and numerous startups create opportunities. Software engineers $75,000-$130,000, data scientists $80,000-$125,000. Growing but not at scale of major tech hubs.
Logistics & Distribution
Central location makes Indiana a logistics hub. FedEx hub, Amazon facilities, and numerous distribution centers provide employment. Operations managers $60,000-$100,000, logistics analysts $50,000-$80,000, warehouse leads $45,000-$65,000.
| Industry | Entry Level | Mid-Career | Senior Level |
|---|---|---|---|
| Pharma (Lilly) Research | $80,000 | $120,000 | $180,000+ |
| Medical Devices | $65,000 | $95,000 | $130,000+ |
| Automotive Engineering | $65,000 | $90,000 | $120,000+ |
| Software Engineering | $65,000 | $95,000 | $130,000+ |
| Healthcare (Physicians) | $250,000 | $320,000 | $450,000+ |
Indiana Tax Advantage
America's Lowest Flat Tax: 3.05%
Indiana's 3.05% flat income tax is the lowest flat rate in the nation (states with 0% aside). Combined with low cost of living, this creates exceptional take-home value:
| Salary | IN Tax (3.05%) | IL Tax (4.95%) | OH Tax (~3.5%) |
|---|---|---|---|
| $60,000 | $1,830 | $2,970 | $2,100 |
| $80,000 | $2,440 | $3,960 | $2,800 |
| $100,000 | $3,050 | $4,950 | $3,500 |
| $150,000 | $4,575 | $7,425 | $5,250 |
Note: Indiana counties add local income taxes (0.5-3%), so effective rate is typically 4-6%. Still very competitive.
Property Tax: Indiana property taxes average 0.81%—below national average. Homestead exemptions reduce burden further.
Sales Tax: 7% statewide, uniform and straightforward.
Indiana Cost of Living Analysis
| Expense | Indiana | National Avg |
|---|---|---|
| Housing Index | 75 | 100 |
| Median Home Price | $230,000 | $420,000 |
| Median Rent (2BR) | $1,050 | $1,400 |
| Groceries Index | 94 | 100 |
| Utilities Index | 96 | 100 |
| Transportation Index | 92 | 100 |
Housing by Region
| Area | Median Home | Rent (2BR) |
|---|---|---|
| Indianapolis | $285,000 | $1,250 |
| Carmel | $420,000 | $1,650 |
| Fishers | $380,000 | $1,550 |
| Fort Wayne | $200,000 | $950 |
| South Bend | $175,000 | $900 |
| Evansville | $165,000 | $850 |
A $70,000 salary in Indiana provides equivalent purchasing power to approximately $95,000 in Chicago or $120,000 in Los Angeles.
Highest Paying Jobs in Indiana 2025
| Occupation | Average Salary | Top 10% Earn |
|---|---|---|
| Physicians/Surgeons | $280,000 | $450,000+ |
| Pharma Scientists (Lilly) | $135,000 | $190,000+ |
| Dentists | $170,000 | $260,000+ |
| IT Directors | $130,000 | $175,000+ |
| Engineering Managers | $125,000 | $165,000+ |
| Pharmacists | $120,000 | $145,000+ |
| Software Engineers | $95,000 | $135,000+ |
| Financial Managers | $115,000 | $160,000+ |
Frequently Asked Questions
Is Indiana a good value for careers?
Exceptional. Low taxes, low costs, and solid wages create excellent purchasing power. A $75,000 Indiana salary often provides better lifestyle than $100,000+ in high-cost metros. Particularly strong for manufacturing, pharma, and healthcare careers.
How is the Indianapolis job market?
Growing and diversifying. Eli Lilly's expansion adds thousands of high-paying jobs. Tech scene has matured with Salesforce hub. Healthcare, finance, and professional services are strong. Not Chicago or Columbus scale, but legitimate mid-tier city opportunities.
Is manufacturing still viable in Indiana?
Very much so. Indiana leads the nation in manufacturing GDP share. Automotive, medical devices, pharma manufacturing, and aerospace provide excellent career paths. Advanced manufacturing increasingly requires technical skills but pays well without requiring college degrees.
What's quality of life like?
Solid Midwest living. Indianapolis offers professional sports (Colts, Pacers), good restaurants, and improving urban scene. Suburbs like Carmel and Fishers consistently rank among best places to live. Smaller cities are affordable but offer fewer amenities. Winters are cold but not extreme.
Should I consider Eli Lilly?
If qualified, absolutely. Lilly is one of America's premier pharmaceutical companies with massive growth from obesity/diabetes drugs. Compensation is competitive, benefits strong, and job security excellent. The Indianapolis campus is expanding significantly. Competition for positions is intense.