Lexington

Lexington, Kentucky is a mid-size city with a population of approximately 320,154. The overall cost of living index sits at 98, which is near the national average of 100. This means everyday expenses — housing, groceries, transportation, and healthcare — are roughly 2% less expensive compared to the typical U.S. city.

Housing is the largest cost driver in Lexington. Median rent is $1,487 per month, while the median home price is $322,743. At a median household income of $67,631, rent consumes roughly 26% of gross income, which remains manageable relative to local incomes. The housing sub-index of 96 sits close to the national norm.

Beyond housing, healthcare is the most elevated non-shelter expense in Lexington with a sub-index of 102, while utilities is comparatively more affordable at 91. State-level taxes also shape the true cost of living: Kentucky applies a 4.00% income tax rate, and property tax averages 0.78% of assessed home value. The combined sales tax rate is 6.00%. Local income tax may apply in some municipalities.

Over the past twelve months, the cost of living in Lexington has trended upward. Among the 2 tracked cities in Kentucky, Lexington ranks #2 from most to least affordable. Whether you're evaluating a job offer, planning a relocation, or comparing salary purchasing power, these numbers give a grounded, data-backed view of what life in Lexington actually costs.