Indiana’s teacher pay just took another hit in the national rankings, slipping to 38th in the country, according to new National Education Association data. Hoosier teachers are averaging $61,661 in the 2024–25 school year, with a reported starting salary of $45,958. The same report shows Indiana spending $13,603 per pupil, a level that leaves the state near the bottom of national per-student funding.
NEA’s Numbers in Context
According to NEA, the national average teacher salary for 2024–25 is $74,495 and the average starting salary is $48,112. That puts Indiana below the national starting figure and well off the overall pay mark. NEA’s state tables place Indiana’s starting salary at 34th nationally, at $45,958, and the $61,661 average highlights a stubborn pay gap between Hoosier classrooms and higher-paying states.
Lawmakers Raised the Floor but Not the Ceiling
State lawmakers tried to nudge those numbers up last year with Senate Enrolled Act 146, which set a required minimum starting salary of $45,000 and directed school corporations to put at least 65% of state tuition support into teacher compensation. The change, enacted as Public Law 190-2025, took effect in the 2025–26 school year and was billed as a first step toward fixing recruitment problems. The full text appears in the state bulletin from the Indiana state bulletin, while local coverage on how the law boosts minimum teacher pay to $45K shows how districts have started to respond.
State Analysts Flag Eroding Wages
Even with those statutory changes, staff from the Legislative Services Agency told an interim fiscal committee that, after adjusting for inflation, median wages for teachers and administrators have actually declined since 2020. At the same time, average pay rose about 4% from 2024 to 2025. That disconnect has lawmakers asking whether the state needs to put in more money, tighten rules on how districts spend tuition support, or both. The Indiana Capital Chronicle reviewed the LSA’s analysis and the concerns it raised.
Unions Say Progress Is Uneven
The Indiana State Teachers Association is not exactly celebrating. Responding to the NEA report, the union called the new numbers “gains are real, but not enough,” and blamed inflation, compressed mid-career salaries and limits on collective bargaining for keeping Indiana behind nearby states. ISTA has also warned that proposed tweaks to property-tax policy could squeeze local taxpayers and make it tougher for districts to offer competitive pay. In a statement, ISTA said most recent salary improvements are coming from local bargaining, not from a steady, long-term boost in statewide investment.
What This Means for Teachers and Districts…