Cost of Living in New Albany

New Albany's cost of living runs genuinely affordable on housing and property tax, within direct commuting distance of Louisville's larger metro economy.

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A real, disclosed home-value spread

New Albany's median home value carries a real, disclosed cross-source spread ($155,400-$169,600) -- both genuinely below the national median.

A genuinely low property tax rate

New Albany's effective property tax rate ran approximately 0.78% (computed from a $1,321 median annual tax bill on a $169,600 median home value) -- genuinely low.

A real, unresolved local income tax tension

Floyd County's local income tax rate carries a real, disclosed, unresolved cross-source tension this pass (1.15% per the more commonly cited current figure, versus a separate 2024-dated report of 1.89%) -- confirm the current, exact rate directly rather than relying on either figure alone.

Indiana's uniform statewide sales tax

Indiana's simple, uniform 7% statewide sales tax applies in New Albany with no county or municipal add-on, and most grocery food is exempt.

Key takeaways

Median home value ($155,400-$169,600) runs genuinely below the national median.
New Albany's effective property tax rate (approximately 0.78%) runs genuinely low.
Floyd County's exact current local income tax rate carries a real, disclosed, unresolved cross-source tension.
Indiana's uniform 7% statewide sales tax applies with no local add-on.

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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.