D+
20%
Overall NAT. AVG.
4%
Goods & Services NAT. AVG.
73%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Carmel Indiana National
Cost of living12090100
Goods & Services9694100
Groceries10098100
Health care8996100
Housing17372100
Transportation9695100
Utilities104107100

An Overview of Cost of Living in Carmel, IN

Knowing the cost of living in Carmel allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Carmel stands at 120, marking it 20% higher than the national average.

The cost of living in Carmel is among the highest in the country, making it a very expensive place to live. Only a small fraction of regions boast a cost of living that is at least 20% higher than the national average, and regrettably, Carmel falls into this category, which may not be suitable for those seeking an economically favorable living environment.

Housing costs significantly influence the Carmel cost of living index, typically accounting for a substantial portion of one's post-tax income. Regrettably, within this particular region, expenses related to both residential ownership and renting exceeded those observed in an average city by 73%. This entails elements such as housing and rental prices, mortgage interest rates and insurance costs.

What Do Locals Say About the Cost of Living in Carmel?

Locals have the inside scoop on their city. So, we polled 14 residents in Carmel to learn how they view the cost of living. We asked how they felt about the cost of living in their area, and if they thought that prices were increasing, decreasing or staying the same. The verdict? 57% find it reasonable with decreasing prices, but 43% think it's quite pricey, with prices that continue to rise.

Is Carmel Affordable?

Is Carmel affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Carmel, the median home price is 90.8% higher than the national average and monthly rent prices are 31.4% higher than the typical rates. Additionally, the median income levels play a role in affordability, with Carmel boasting a median household income of $115,109, 108.1% higher than the national average.

What Factors can Influence the Cost of Living in Carmel?

Taxes: Areas with higher taxes, including sales taxes and income taxes, can contribute to a higher cost of living. Paying more tax for everyday goods and services like clothing and food will result in higher costs, as will paying a higher rate of income tax. The general sales tax rate in Carmel starts at 7% and the income tax rates start at 3.23%.

Subsidies: Certain regions may provide government subsidies or assistance initiatives designed to alleviate the cost of living burden on their residents. These programs encompass a wide range of support mechanisms, such as Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farming subsidies. Areas with fewer subsidy offerings might experience an elevation in their cost of living.

Healthcare: The costs associated with healthcare and insurance premiums can exhibit notable disparities based on the city or state of residence. Access to healthcare facilities, out-of-pocket expenses for medical appointments, dental care charges, prescription medication costs and specialized medical care expenses all contribute to variations in the cost of living. In Carmel, healthcare costs are 10.9% lower than the national average.

Where is the Data From?

The Carmel cost of living data you see above is sourced from the C2ER cost of living index, providing a practical and accurate means of comparing living expenses in urban areas. Updated quarterly, this index gathers data from over 300 independent researchers, covering more than 60 goods and services, in 6 different categories. These selections are made meticulously to represent a wide range of consumer expenditure categories. The weightings applied to cost differences are based on government survey data that tracks spending patterns among professional and executive households. It's important to note that while the C2ER index excludes data on sales or income tax rates, AreaVibes factors tax rates into the overall cost of living score for each region.

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Cost Of Living Quick Facts

  • The cost of living in Carmel is 34% higher than the Indiana average
  • The cost of living in Carmel is 20% higher than the national average
  • Carmel housing is 73% higher than the national average
  • Indiana general sales tax is 37% higher than the national average
  • Indiana state income tax is 21% higher than the national average

Compare Carmel, IN Cost of Living

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      Salary Calculator

          This is how much you would need to earn in
          Price difference in compared to
          Cost of living index
          Goods & Services index
          Groceries index
          Health care index
          Housing index
          Transportation index
          Utilities index

          Median Income & Debt-To-Income Ratio

          Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
          Owners$141,567$11,797$3,303$4,247
          Renters$64,633$5,386$1,508$1,939
          A good indicator of the general affordability of housing in Carmel, IN, is the percentage of monthly income that should be spent on housing expenses, otherwise known as the debt-to-income ratio (DTI). Generally speaking, no more than 28 percent of your total gross income should be spent on your housing expenses and not more than 36 percent of your gross income on total expenses, including debts. In Carmel, the median monthly income is $141,567 for those who own their own homes. Under the standard rule, that income level would allow for $3,303 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $64,633, per the median income in the area. That would allow for renters to spend up to $1,508 on monthly rental expenses.

          Indiana Sales Tax

          State General Sales Tax With Max Surtax
          Indiana 7% 7%

          Indiana Income Tax

          State Income Tax (Low) Income Tax (High)
          Indiana 3.15% 3.15%

          Goods & Services

          Item Carmel National avg. Difference
          Haircut $19.53$24.2619.5%
          Beauty Salon $39.03$45.5614.3%
          Toothpaste $3.67$3.700.9%
          Shampoo $1.33$1.284.1%
          Movie $10.91$12.1310.1%
          Bowling $18.70$18.003.9%

          Groceries

          Item Carmel National avg. Difference
          Ground Beef $5.91$5.841.3%
          Fried Chicken $1.61$1.572.4%
          Milk $4.73$4.671.3%
          Potatoes $5.07$4.932.7%
          Pizza $12.39$12.092.5%
          Beer $10.30$10.411.1%

          Health Care

          Item Carmel National avg. Difference
          Optometrist $73.37$125.6841.6%
          Doctor $99.19$135.7826.9%
          Dentist $109.26$113.293.6%
          Ibuprofen $10.70$10.650.4%
          Lipitor $509.36$468.608.7%

          Housing

          Item Carmel National avg. Difference
          Home Price $352,400.00$184,700.0090.8%
          Avg. Mortgage Payment $1,794.91$2,346.6923.5%
          Apartment Rent $1,247.00$949.0031.4%

          Transportation

          Item Carmel National avg. Difference
          Gasoline $3.39$3.462.2%
          Tire Balancing $54.63$59.928.8%

          Utilities

          Item Carmel National avg. Difference
          All Electricity $207.03$193.996.7%
          Phone $190.02$192.251.2%
          Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

          Nearby cities with low cost of living

          City Population Cost of Living Index National Avg.
          Arcadia, IN1,5308614.3%
          Sheridan, IN3,4548812.4%
          Clermont, IN1,365918.9%
          Speedway, IN12,327928.4%
          Warren Park, IN1,477927.7%
          Carmel, IN99,13012020.0%

          Cities with similar population

          City Population Cost of Living Index National Avg.
          Roanoke, VA99,122927.9%
          Saint-Jean-sur-Richelieu, QC99,027n/a 
          Lee's Summit, MO98,9971032.7%
          Spokane Valley, WA99,2751088.3%
          Boca Raton, FL98,77614444.3%
          Carmel, IN99,13012020.0%
          Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.