The minimum wage in Indianapolis is $7.25/hour in 2026. See how it compares to the MIT living wage of $19.50/hour and local cost of living.
Last updated: May 2026 · Data: MIT Living Wage Calculator, C2ER, U.S. Census, BLS, IRS, state and city sources
Calculate annual, monthly, and weekly income at any hourly wage in Indianapolis.
The minimum wage in Indianapolis is the federal rate of $7.25/hour. Indiana has not enacted a state minimum wage above the federal floor and prevents cities from setting their own, so the federal minimum of $7.25/hour applies to most private employers in Indianapolis. The bigger question for most workers is how that compares to what it actually costs to live in Indianapolis. With average 1-bedroom rent near $1,100/month and a cost-of-living index of 90 (US average = 100), the gap between the minimum wage and a true living wage is significant.
| Benchmark (Indianapolis, 2026) | Hourly | Annual (full-time) |
|---|---|---|
| Applicable minimum wage | $7.25 | $15,080 |
| MIT living wage (single adult) | $19.50 | $40,560 |
| MIT living wage (family of four, one earner) | $39.50 | $82,160 |
| Federal minimum wage | $7.25 | $15,080 |
| Average rent (1-bedroom, annual) | - | $13,200 |
Living wage figures: MIT Living Wage Calculator for Marion County. Minimum wage reflects the rate applicable to most private employers in Indianapolis.
Indianapolis is the capital and largest city in Indiana, with an economy built on life sciences and pharmaceuticals (anchored by Eli Lilly), insurance and finance, logistics through a major FedEx hub, advanced manufacturing, and a national reputation for hosting major sporting events.
| Local Metric | Indianapolis (2026 estimate) |
|---|---|
| Metro population | 880,000 |
| County / jurisdiction | Marion County |
| Cost of living index (US avg = 100) | 90 |
| MIT living wage, single adult | $19.50/hour |
| MIT living wage, one earner supporting a family of four | $39.50/hour |
| Applicable minimum wage | $7.25/hour |
| Average rent, 1-bedroom | $1,100/month |
| Average rent, 2-bedroom | $1,350/month |
| Median home price | $250,000 |
| Median household income | $62,000/year |
| Combined sales tax rate | 7% |
| Effective property tax rate | 0.85% of value/year |
Local figures are 2026 estimates compiled from the MIT Living Wage Calculator, the C2ER Cost of Living Index, U.S. Census and Zillow housing data, and city and county sources. Verify current figures before relying on them.
The minimum wage in Indianapolis is the federal rate of $7.25/hour. Indiana has not enacted a state minimum wage above the federal floor and prevents cities from setting their own, so the federal minimum of $7.25/hour applies to most private employers in Indianapolis. A full-time worker (40 hours/week, 52 weeks) earns about $15,080 per year gross before taxes at that rate.
Not for a single adult. The MIT Living Wage Calculator estimates a single adult in Marion County needs about $19.50/hour (roughly $40,560/year) to cover basic costs. That is $12.25/hour above the applicable minimum wage, and a one-earner family of four needs closer to $39.50/hour.
At $7.25/hour, full-time work (2,080 hours/year) produces about $15,080 gross. Part-time at 30 hours/week is roughly $11,310/year. Average 1-bedroom rent in Indianapolis is about $1,100/month, or $13,200/year.
Indiana has not enacted a state minimum wage above the federal floor and prevents cities from setting their own, so the federal minimum of $7.25/hour applies to most private employers in Indianapolis.
The federal minimum wage is $7.25/hour and has not changed since 2009. Indiana has not enacted a state minimum wage above the federal floor, so the federal minimum of $7.25/hour applies in Indianapolis.