10 Best Cities to Retire in Indiana in 2026

Indiana sits at the base of Lake Michigan, squarely in the center of the Midwestern States. Most people know it because of its many illustrious universities, the Indy 500, and the Jackson 5, but it’s also a desirable retirement spot, with a low cost of living and community-forward towns.

Indiana is home to the Indianapolis 500, a deep love of sports, and stunning scenic hills. If you’re eager to live in a Midwestern state with a very low cost of living, bountiful golf courses, and bustling college towns, Indiana could be the retirement destination for you. Learn what makes places like Carmel, Bloomington—and of course, the state capital of Indianapolis—so special, then decide which Indiana town is best for your retirement.

Is Indiana a good place to live for retirees?

Retirees are often drawn to Indiana for its low cost-of-living and slower pace of life. Many retiree destinations, such as Carmel and Bloomington, offer tight-knit communities and cater to the senior population, especially with overall lower medical costs than the rest of the country.

Locals also love the miles and miles of green spaces that Indiana has to offer; between Indiana Dunes National Park and the many acres of forests and lakes, outdoor enthusiasts always have something to do in the Hoosier State. It’s a golfer’s paradise, too—there are over 400 courses to choose from.

It’s not entirely a picnic, however. If you don’t think you can handle Indiana's extreme weather—hot, humid summers, and long, cold winters, you might be better off retiring in the Southwest or South. It’s also a block of land; the only coast is a small sliver of Lake Michigan—if you dream of beachfront living in retirement, consider looking elsewhere.

Is Indiana tax-friendly for seniors?

Indiana is moderately tax-friendly for retirees. While the state has a low, flat income tax rate—2.95%—different cities and municipalities can impose their own rates, which can vary significantly, so this is a critical thing to research before choosing a retirement destination in the state.

On the plus side, the property tax rate is very low, compared to the rest of the country—just 0.77%. There are also a couple property tax breaks for seniors that allow for extra tax credits.

Note that Indiana does not tax Social Security income, but does tax 401(k) and IRA distributions. Pensions are also taxable. All of these income sources are taxed based on your overall income tax bracket.

Do seniors in Indiana pay property taxes over 65?

Yes, seniors over 65 in Indiana pay property taxes. Indiana’s property tax is very low compared to most other states——just 0.77%—and there are some tax relief programs for seniors.

There are several criteria to qualify for these programs, but for the most common one—the Over 65 Credit—you will need to show that you are indeed over 65, that you own your home, and that your income is lower than $60,000 (single filers) or $70,000 (joint filers).

What benefits do seniors get in Indiana?

Most special programs and benefits for seniors in Indiana are geared towards those in a lower income bracket.

• The Low Income Home Energy Assistance Program (LIHEAP) provides a one-time benefit to assist low-income households with the cost of energy bills.
• Medicare is available to assist with broad medical needs.
• State Health Insurance Assistance Program (SHIP) is available for those who need guidance making healthcare decisions.
• Indiana PathWays for Aging is a special Medicaid waiver program.

The Senior Farmers’ Market Nutrition Program (SFMNP) is another benefit that allows seniors to receive vouchers to shop at local farmers’ markets and purchase fresh produce.

Where is the best place to retire in Indiana?

According to the 2024 U.S. Census, over 17% of Indiana’s population is over the age of 65, making it a state with a very high retirement population. This should be reassuring if you’re looking to relocate to the Hoosier state—you will be in community with many others your age. But where should you retire to?

Indiana is home to several small towns with charming, tree-lined neighborhoods, as well as some college towns that provide bountiful cultural amenities and lively atmosphere, without sacrificing that small town charm. Read on to learn which city or town in Indiana is best for you, depending on your specific priorities.

1. Indianapolis

CITY POPULATION: 901,116

SHARE OF POPULATION 65+: 13%

COST OF LIVING FOR RETIREES: 10% below the national average

MEDIAN HOME VALUE: $232,133

MEDIAN RENT: $1,500

TAX RATING FOR RETIREES: Moderately Tax Friendly

If you want to live in a city without sacrificing your budget, Indianapolis ranks as one of the most affordable cities in the US, with the cost of living 10% below the national average. Being in the metropolis has many perks: access to quality healthcare facilities (Indiana University runs several), an international airport, as well as tons of cultural activities and dining options. You’ll also have the luxury of choosing from many neighborhoods, each with their own vibe and character, when selecting a retirement home.

2. West Lafayette

CITY POPULATION: 45,747

SHARE OF POPULATION 65+: 7%

COST OF LIVING FOR RETIREES: 2% above the national average

MEDIAN HOME VALUE: $365,761

MEDIAN RENT: $1,750

TAX RATING FOR RETIREES: Moderately Tax Friendly

Lafayette is home to Purdue University, which offers many continuing education opportunities for seniors in the area as well as low-cost medical clinics run by the college. Given the diverse student body, the town has an international and thriving dining scene, and living near Lafayette’s bustling downtown means optimal walkability for retirees looking to stay active.

3. Crawfordsville

CITY POPULATION: 16,699

SHARE OF POPULATION 65+: 20%

COST OF LIVING FOR RETIREES: 24% below the national average

MEDIAN HOME VALUE: $224,003

MEDIAN RENT: $999

TAX RATING FOR RETIREES: Moderately Tax Friendly

Located in west-central Indiana, Crawfordsville has small-town charm with bigger city amenities. A haven for history buffs, the town makes great efforts to preserve its historical buildings and sites, and is home to the General Lew Wallace Study & Museum, where Lew Wallace wrote Ben-Hur, as well as the Carnegie Museum of Montgomery County, which offers art and history from the region. With housing prices below the national average and plentiful medical care and senior living communities, Crawfordsville offers a comfortable, community-driven place to call home that won’t break the bank.

4. Bloomington

CITY POPULATION: 83,307

SHARE OF POPULATION 65+: 11%

COST OF LIVING FOR RETIREES: Even with the national average

MEDIAN HOME VALUE: $315,221

MEDIAN RENT: $1,890

TAX RATING FOR RETIREES: Moderately Tax Friendly

Bloomington is known for its natural beauty: the town is surrounded by Another college town on our list, seniors in Bloomington are able to access many cultural events and continuing education classes offered by Indiana University. The friendly, community-focused city is also known to have a robust music scene, with several jazz bars and live performances hosted by the university. Locals adore its charming court house square, which has boutiques, cafes, and more.

5. Vincennes

COUNTY POPULATION: 16,378

SHARE OF POPULATION 65+: 17%

COST OF LIVING FOR RETIREES: 30% below the national average

MEDIAN HOME VALUE: $166,570

MEDIAN RENT: $923

TAX RATING FOR RETIREES: Moderately Tax Friendly

Vincennes has the special honor of being Indiana’s oldest city. Given its heritage, it’s no surprise that it is rich with cultural history and has plenty to do for retired histroy buffs, from the Indiana Military Museum to George Rogers Clark National Historic Park, which features murals that pay tribute to the Revolutionary War hero set against the Wabash River. In addition, Vincennes is affordable—home prices are not only lower than the national average, but the average in Indiana.

6. Connersville

CITY POPULATION: 13,406

SHARE OF POPULATION 65+: 19%

COST OF LIVING FOR RETIREES: 28% below the national average

MEDIAN HOME VALUE: $159,296

MEDIAN RENT: $750

TAX RATING FOR RETIREES: Moderately Tax Friendly

Connersville is ideal for retirees seeking a quieter town to call home. Located in eastern Indiana, the town has bountiful natural beauty to see and explore. The Mary Gray Bird Sanctuary is—as its name suggests—a haven for birdwatchers, but also offers casual trails for those who simply want to enjoy a morning stroll surrounded by greenery. Even though it’s a small town, Connersville also has excellent medical services through Meridian Health, allowing locals to get care close to home rather than drive to a larger city.

7. Carmel

CITY POPULATION: 105,634

SHARE OF POPULATION 65+: 15%

COST OF LIVING FOR RETIREES: 6% above the national average

MEDIAN HOME VALUE: $570,592

MEDIAN RENT: $2,290

TAX RATING FOR RETIREES: Moderately Tax Friendly

Carmel is just north of Indianapolis, which means residents get to live in a slower-paced city but are a stone’s throw from all the fun that a big metropolis offers. Many retirees choose Carmel for its green spaces—its home to the Monon Greenway, which runs over 15 miles for biking, walking, jogging, and more.

8. Valparaiso

CITY POPULATION: 35,177

SHARE OF POPULATION 65+: 17%

COST OF LIVING FOR RETIREES: 1% above the national average

MEDIAN HOME VALUE: $359,824

MEDIAN RENT: $1,500

TAX RATING FOR RETIREES: Moderately Tax Friendly

Valparaiso is a small town in northern Indiana, but you wouldn’t know it from its bustling downtown. The town center went through a revitalization program and now boasts numerous new restaurants, shops, and more. If you don’t drive, Valparaiso is an excellent place to retire—the local light rail will take you to Chicago in under two hours.

9. Rockville

CITY POPULATION: 2,559

SHARE OF POPULATION 65+: 27%

COST OF LIVING FOR RETIREES: 23% below the national average

MEDIAN HOME VALUE: $226,475

MEDIAN RENT: $599

TAX RATING FOR RETIREES: Moderately Tax Friendly

Rockville is in Parke County, known as the Covered Bridge Capital of the World. The bridges are stunningly beautiful and dot the town, adding to its natural charm and overall friendliness—locals love to talk about their favorite bridge or favorite place to eat. The business district is home to many quirky and quaint shops, restaurants, and cafes; the town also has many special and personalized services just for seniors.

10. Fort Wayne

CITY POPULATION: 273,425

SHARE OF POPULATION 65+: 16%

COST OF LIVING FOR RETIREES: 7% below the national average

MEDIAN HOME VALUE: $245,993

MEDIAN RENT: $1,192

TAX RATING FOR RETIREES: Moderately Tax Friendly

Fort Wayne frequently appeared on lists of the “happiest cities in America.” Why? One reason could be its many parks—locals can enjoy over 80 parks in the city, many of them fully equipped with tennis courts, hiking trails, and more. It’s also affordable, allowing seniors to live comfortably (and happily) on less, leaving room for travel and other activities.

Bottom Line

Indiana is a worthwhile retirement location to explore if you’re looking for low cost-of-living and a slow pace of life. Choosing between the Hoosier State’s many towns—from ones that surround colleges to its own state capital—will depend on your specific priorities and goals for retirement. To best decide which city to move to in Indiana, talk to a financial advisor at Retirable and review your investments and budget.