What Is the Average Income in Indiana?

Income levels offer a comprehensive look into a state’s economic standing, reflecting the financial health of its residents and overall prosperity. Understanding how income is measured and distributed provides insights into living standards and economic opportunities within a region. This analysis will explore various aspects of income in Indiana, detailing statewide figures, demographic variations, and regional differences.

Overall Income Landscape in Indiana

Indiana’s overall income picture for 2023 shows a median household income of $70,051. The median household income in Indiana saw a 4.28% increase from $67,173 in 2022. In contrast, the average annual household income for Indiana was $92,643 in 2024, which is lower than the U.S. average.

A “household” for income reporting purposes, as defined by the U.S. Census Bureau, includes all the people who occupy a housing unit as their usual place of residence, regardless of their relationship to one another. This can encompass a single person living alone, a family, or multiple unrelated individuals sharing a living space. The total money received by everyone in a household over 15 years old in a year, including wages, pensions, investments, and public assistance, contributes to this household income figure.

Income Variations Across Demographics

Income levels in Indiana demonstrate variations across different demographic groups, particularly when considering age and education. For instance, householders aged 45 to 64 years typically report the highest median household income, reaching approximately $85,700 in Indiana. This group often represents peak earning years, benefiting from accumulated experience and career progression. Following this, householders aged 25 to 44 years have the second-highest median household income at around $77,972, reflecting the income growth as individuals advance in their careers.

Conversely, younger householders, specifically those under 25 years old, generally have the lowest median household income, estimated at $39,033. This is often due to entry-level positions, part-time work, or ongoing education. Householders aged 65 years and over also see a decrease in median income, with figures around $51,271, as many transition into retirement and rely on fixed incomes or retirement savings.

Regional Income Differences

Income levels in Indiana also vary significantly across its geographic regions, with urban centers often showing higher incomes compared to more rural areas. For example, in 2023, the median household income in Indianapolis, the state’s largest metropolitan area, was $62,995. This contrasts with other major cities like Fort Wayne, which had a median household income of $60,293 in 2023, and Evansville, with a median household income of $52,251 in the same year.

Certain counties within Indiana exhibit even higher income levels than the state average. Hamilton County, for instance, reported the highest median household income in Indiana in 2023 at $117,957. Other counties such as Boone County ($104,865) and Hendricks County ($99,988) also show significantly higher incomes, often reflecting concentrations of higher-paying jobs and affluent communities.

Understanding Income Data

When evaluating income statistics, it is important to distinguish between “average” (mean) income and “median” income. Average income is calculated by summing all incomes and dividing by the number of earners or households, which can be heavily influenced by a few extremely high earners. Median income, however, represents the middle value in a sorted list of incomes. Median income is often considered a more accurate representation of a typical individual’s or household’s financial standing.

Official income data is primarily collected and disseminated by federal agencies such as the U.S. Census Bureau and the Bureau of Labor Statistics (BLS). The U.S. Census Bureau’s American Community Survey (ACS) is a key source, providing detailed annual estimates on various demographic and economic characteristics, including income. The Bureau of Economic Analysis (BEA) also provides valuable insights into personal income, offering data on income sources and economic well-being. These sources ensure the reliability and comparability of income statistics across different regions and time periods.