Aerospace Engineer.
Indianapolis.
$124,000
median salary, 8% below the national average
$97,000 to $160,000. Last updated August 2026.
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Data points to own the conversation.
An Aerospace Engineer in Indianapolis earns a median of $124,000 in 2026. That is 8% below the national average. The range runs from $97,000 to $160,000, and where you land depends on your experience, your skills, and how well you negotiate. Security clearance level and employer type drive the widest variance. These figures are Orbyt estimates, computed rather than measured, and must not be cited as Bureau of Labor Statistics figures; the published BLS wage for the occupation this role maps to is shown separately on this page.
Salary range.
Where do you fall?
Orbyt estimate for Aerospace Engineer in Indianapolis, modelled from national occupation wages adjusted for local cost of living. The published government benchmark for this occupation is below.
Government benchmark for this occupation
The US Bureau of Labor Statistics reports a median annual wage of $112,140 for Aerospace Engineers (SOC 17-2011) in the Indianapolis-Carmel-Greenwood, IN metropolitan area, based on 330 employed workers (May 2025 release).
10th percentile
$83,000
25th percentile
$87,170
Median
$112,140
75th percentile
$135,450
90th percentile
$176,860
Workers surveyed
330
BLS publishes wages by occupation code, not by job title, so this figure covers every role mapped to Aerospace Engineers (SOC 17-2011) rather than Aerospace Engineer specifically. The Indianapolisrange at the top of this page is Orbyt’s role-level estimate, which is a different thing and is labelled as such.
View the BLS source for SOC 17-2011Salary by experience.
The gap between entry and lead level is typically $111,000. Where you land depends on years of experience and what you bring to the table.
Entry (0-2 yrs)
$81,000
to $99,000
Mid (3-5 yrs)
$105,000
to $130,000
Senior (6-9 yrs)
$136,000
to $161,000
Lead (10+ yrs)
$155,000
to $192,000
Total compensation.
Base salary is not the full picture. Equity, bonus, and signing can add $30,000 to the total package.
Base
$124,000
Equity
$17,000
Bonus
$11,000
Signing
$2,000
Estimated total: $154,000
How Indianapolis compares.
Indianapolis, IN
$124,000
Cost of living: 9% below average
National Average
$135,000
Indianapolis is $11,000 below
Aerospace Engineer salary by city.
Salary by role in Indianapolis.
What you should know.
Here is what the Aerospace Engineer market actually looks like in Indianapolis. Indianapolis has a diversified economy led by healthcare, life sciences, and motorsports engineering. Eli Lilly's headquarters drives a major pharmaceutical and biotech cluster. The city's extremely affordable cost of living means that even moderate salaries deliver strong purchasing power, making it an underrated destination for professionals seeking financial stability. Security clearance level and employer type drive the widest variance. Defense contractors pay 10 to 20% premiums for TS/SCI clearances. Specialization in propulsion, avionics, or spacecraft systems commands higher compensation than structural analysis. The growing commercial space sector is pushing salaries upward across all levels.
Junior aerospace engineers start at $88,000 to $100,000. Senior engineers reach $115,000 to $152,000 after six to eight years. Principal engineers and engineering directors earn $155,000 to $210,000, with chief engineers at major programs exceeding $230,000. In Indianapolis, cost of living sits near the national average, so the numbers you see are roughly what you keep.
Base salary is not the full picture. Defense contractors offer 8 to 15% annual bonuses and retention bonuses of $10,000 to $30,000 for cleared engineers. Commercial space companies like SpaceX and Blue Origin add equity packages. Many roles include relocation assistance and clearance processing support. And on the tax side: indiana has a flat 3.05% state income tax, one of the lowest in the country. Marion County adds about 2.02% in local taxes. The combined rate remains well below most major metros. When someone quotes you $124,000, ask what the total package looks like. The gap between base and total comp is where real money hides.
On negotiation: Benchmark against pharmaceutical industry pay scales. Eli Lilly and the biotech cluster set high compensation floors that ripple across all professional roles in Indianapolis. The range for Aerospace Engineers in Indianapolis runs from $97,000 to $160,000. That is not a narrow window. Where you land inside it depends almost entirely on whether you negotiate and how well you prepare.
Sources: BLS OES, H-1B LCA (DOL). COL: BEA Regional Price Parities (2025). Data verified by Justin Bartak, Founder & Chief AI Officer. Last verified July 1, 2026. Full methodology
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Common questions.
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