Physical Therapist Salary in Indianapolis, IN
Physical Therapists in Indianapolis, IN earn a median of $65,000/year, ranging from $50,050 (25th percentile) to $104,000 (90th percentile). After Indiana state taxes (3.15%) and cost-of-living adjustments (COL index 90), this is equivalent to $72,222 in purchasing power vs the US average.
On the ground in Indianapolis, IN
Physical therapists here work across a mix of outpatient clinics, hospital systems, and sports medicine facilities. Notable employers in this market include IU Health, Franciscan Health, and various independent PT practices clustered around the Medical District and suburban strips. On the neighborhood front, a comfortable 2BR apartment in Fountain Square or near Broad Ripple runs around $1,200 to $1,400 monthly, leaving room in most PT budgets to build savings. The city's relatively flat layout makes commuting manageable by car along the I-465 loop and surface streets, though downtown and near-north corridors can get congested during peak hours. Indiana's 3.15% state income tax is notably lower than many neighboring states, which helps offset the modest salary range here. You'll find the pace steadier than high-pressure metro markets, with a solid network of established practices that value long-term relationships over constant turnover.
1Salary Distribution in Indianapolis, IN
2Estimated Take-Home & Purchasing Power
* Estimates only. Does not include federal income tax, 401k, health insurance, or local taxes. Use the Salary Calculator for a detailed breakdown.
How Does Indianapolis, IN Compare?
| City | Median | COL Index | COL-Adjusted |
|---|---|---|---|
| Indianapolis, IN (current) | $65,000 | 90 | $72,222 |
| San Francisco, CA | $105,000 | 186 | $56,452 |
| New York, NY | $101,000 | 187 | $54,011 |
| Seattle, WA | $102,000 | 162 | $62,963 |
| Boston, MA | $93,000 | 162 | $57,407 |
| Austin, TX | $84,000 | 124 | $67,742 |
4Frequently Asked Questions
What is the average Physical Therapist salary in Indianapolis, IN?
The median Physical Therapist salary in Indianapolis, IN is $65,000 per year as of 2026 BLS OEWS data. The 25th percentile is $50,050 and the 90th percentile is $104,000.
Is Indianapolis, IN a good place to work as a Physical Therapist?
Indianapolis, IN has a cost of living index of 90 (US average = 100). After adjusting for cost of living, a $65,000 Physical Therapist salary in Indianapolis, IN is equivalent to $72,222 in purchasing power compared to the US average.
What is the cost of living adjustment for Indianapolis, IN?
Indianapolis, IN has a cost of living index of 90, meaning it is 10% less expensive than the US average. The state income tax rate in Indiana is approximately 3.15%.
What is the Physical Therapist salary range in Indianapolis, IN?
In Indianapolis, IN, Physical Therapists earn between $50,050 (25th percentile) and $104,000 (90th percentile), with a median of $65,000 per year.
How many Physical Therapist jobs are there in Indianapolis, IN?
According to BLS OEWS data, there are approximately 22,500 Physical Therapist positions in the Indianapolis, IN metropolitan area.
What do Physical Therapists earn in Indianapolis, IN?
Based on BLS OEWS 2026 data, Physical Therapists in Indianapolis, IN earn a median annual wage of $65,000. The middle 50% earn between $50,050 and $83,200. The top 10% earn more than $104,000. There are approximately 22,500 Physical Therapists employed in the Indianapolis, IN metro area, with annual job growth estimated at 3.6%.
Is Indianapolis, IN a good place for a Physical Therapist?
Indianapolis, IN has a cost of living index of 90 (US average = 100), making it 10% less expensive than the national average. After adjusting for cost of living, a Physical Therapist in Indianapolis, IN earning $65,000has the equivalent purchasing power of $72,222 relative to the US median. Indiana has a state income tax rate of approximately 3.15%.
What is the cost of living adjustment for Indianapolis, IN?
Indianapolis, IN's cost of living index is 90, based on composite data including housing, food, transportation, healthcare, and utilities. This means that $65,000 in Indianapolis, INhas the same purchasing power as $72,222 in a city at exactly the US average cost of living. Housing is typically the largest driver of cost of living differences between metros.
Compare Indianapolis, IN with Another City
See a detailed side-by-side comparison of salary, taxes, and purchasing power.
5Should You Work as a Physical Therapist in Indianapolis, IN?
The headline median of $65,000 is only part of the picture. Indianapolis, IN's cost of living index is 90 (US average = 100), meaning a dollar here goes further than in most of the country. The $65,000 salary has the purchasing power of roughly $72,222 at national-average prices — a real premium for moving to a lower-cost market.
Housing is the single biggest driver of cost-of-living differences between metros. In Indianapolis, IN, housing costs fall closer to the national average of 25–30% of gross income, leaving more room in the budget for savings, transportation, and discretionary spending. For a $65,000 salary, that translates to roughly $18,200/year on housing alone.
State tax plays a meaningful but smaller role. Indiana levies a state income tax of approximately 3.15%, which reduces take-home by roughly $2,048 per year on this salary. States with zero income tax (Texas, Florida, Washington, Tennessee, Nevada) offer a structural advantage, but often offset it with higher sales tax or property tax. After state tax and approximate federal FICA (~7.6%), the estimated take-home is $58,168. This excludes federal income tax, which varies by filing status and deductions.
For comparison, here are nearby alternatives: San Francisco, CA ($105,000 median, COL 186); New York, NY ($101,000 median, COL 187); Seattle, WA ($102,000 median, COL 162). If you're optimizing for purchasing power, compare the COL-adjusted column in the table above and pick the highest number. If you're optimizing for career progression, weight total employment and yearly growth in the role — larger markets offer more lateral moves and promotion velocity, even when nominal pay is lower.
The 3.6% year-over-year growth rate for Physical Therapists in Indianapolis, IN is a leading indicator of market health. Healthy growth at a steady pace — enough to support mobility but not so fast that compensation is racing ahead of credentials. For side-by-side comparisons, try the full city ranking for Physical Therapists or the Indiana state overview.
Data source: U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics (OEWS) Program. All figures are approximate annual estimates based on the most recent available BLS data. Actual salaries may vary based on experience, education, employer size, and specific role. Cost-of-living data represents composite indices from publicly available metropolitan area data.