New NEA report shows Indiana falling behind in teacher pay, raising concerns about educator retention
04/27/2026
Indiana is falling behind other states both nationally and regionally in teacher pay, according to new data released today by the National Education Association, raising concerns about the state’s ability to retain educators and sustain a strong public education workforce.
The NEA’s latest Rankings and Estimates report shows Indiana’s average teacher salary is $61,661, ranking 38th in the nation, unchanged from the previous year despite recent increases in pay.
“Indiana educators are making progress, but we’re not keeping pace with other states,” said ISTA President Jennifer Smith-Margraf. “That puts long-term retention at risk and makes it harder to build a stable, experienced workforce in our public schools.”
Compared to neighboring states, Indiana ranks near the bottom. Average teacher pay in Illinois ($78,495), Michigan ($71,023), Ohio ($70,586), and Wisconsin ($67,794) all exceed Indiana’s average salary, leaving Indiana second to last among neighboring states.
In 2020, the Indiana teacher compensation commission set a goal of reaching at least the middle of neighboring states in teacher pay. The latest data show the state remains well short of that benchmark.
While starting teacher salaries have received increased attention by the legislature in recent years, the NEA report shows Indiana has also lost ground in that area. The state now ranks 34th in starting pay, a drop of seven spots from the previous year.
A heavy focus on starting salaries has created additional challenges for schools, including growing pay compression between newer and more experienced educators.
“In many districts, mid-career educators are not seeing the same level of increases as new teachers,” Smith-Margraf said. “That creates real challenges for retention and sends the wrong message to educators who are building their careers in Indiana.”
At the same time, state funding for public schools is moving in the wrong direction. While data show Indiana’s spending per student increased slightly, the state still ranks around 40th nationally in school funding.
Data from the Indiana Education Employment Relations Board confirm that teacher pay has increased in recent years, with Indiana’s average teacher salary now exceeding $60,000. Much of that progress has been driven by local associations and school districts working together through collective bargaining to prioritize educator pay.
“Educators and local associations across Indiana have fought hard to move teacher pay forward,” Smith-Margraf said. “Those efforts are making a difference, but they can’t do it alone.”
National data show that teachers in states with strong collective bargaining rights earn significantly higher salaries on average. In Indiana, educators have limited bargaining rights, making the work of local associations even more critical in advocating for competitive pay.
Long-term trends also raise concerns. While teacher salaries have increased in raw dollars over time, they have not kept pace with inflation, meaning many educators have effectively lost ground in purchasing power. Like many working Hoosiers, educators are feeling the strain of rising costs for essentials such as housing, groceries and gas. When pay does not keep pace with the cost of living, it becomes even harder to attract and retain experienced educators.
Recent changes to property tax policy are expected to add to those challenges. Reductions in local revenue will put additional pressure on school budgets, making it more difficult for districts to invest in educator pay and stay competitive with other states. This will also increase pressure on local taxpayers, who may be asked to make up the difference through local funding decisions.
“If we want to attract and keep great educators in Indiana, we have to stay competitive,” Smith-Margraf said. “That means investing in public schools and making sure educator pay reflects the value of experience, not just entry into the profession.”
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