Cost of Living & Housing in Madison

Madison's cost of living pairs a genuinely low Jefferson County local income tax with a housing market that has real, disclosed recent price softening after a period of strong historic-district demand.

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A real, disclosed recent housing-market cooling

Madison's median sale price ran approximately $193,000 in the most recent month reviewed, down a real, disclosed 12.4% year-over-year -- a genuine cooling this record states plainly. Newest active listings still averaged notably higher, at approximately $259,900, reflecting real demand for properties within or near the 2,160-acre National Historic Landmark district (base record).

Jefferson County's comparatively low local income tax

Jefferson County levies a real, comparatively low flat 0.35% local income tax on both residents and nonresidents, on top of Indiana's 2.95% flat state rate -- among the lower local-income-tax rates in this project's Indiana dataset, notably lower than counties like Brown County (2.20% resident) (base record).

Property taxes tracking the Indiana statewide median

Madison's own median effective property tax rate ran 1.00%, essentially matching Indiana's statewide median (1.01%); Jefferson County's broader effective rate ran slightly lower at 0.93%, with an average tax bill of approximately $1,250 -- about 29% below the Indiana statewide average (base record).

Key takeaways

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Last reviewed: 2026-08-27. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.