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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
The numbers are clear: 2 of 2 cities in Kentucky beat the national cost-of-living benchmark of 111. Louisville stands out at 79 on the index, with rent of $1,352/month and household income of $64,731. Assembled from 2026 Census, Zillow, and BLS data.
The numbers are clear: 2 of 2 cities in Kentucky beat the national cost-of-living benchmark of 111. Louisville stands out at 79 on the index, with rent of $1,352/month and household income of $64,731. Assembled from 2026 Census, Zillow, and BLS data.
Here's Louisville by the numbers — and there's a lot to like (and a little to watch). Cost index: 79. Rent: $1,352/month. Income: $64,731/year. Home price: $259,139. Population: 622,981. The strongest category is Housing at 79; the most expensive is Healthcare at 96. Translate that rent to annual numbers, and residents are saving renters $6,516 per year vs. the national median. This is where the math gets real for actual people.
Tax burden isn't just income tax. We combine three layers: state income tax (4% in Louisville), combined state+local sales tax (6%), and effective property tax (0.78%). At 4% state income tax, the real differentiator becomes sales and property tax rates. On a $75,000 salary, the estimated take-home in #1 Louisville is $54,710/year.
What's equally notable: Kentucky — Appalachian value and bourbon country charm. The 2 cities we track here average a cost index of 83 and median income of $66,181. It's a clear buyer's market compared to national norms. The typical rent runs $1,420/month, which is $475 less than the national median.
Bottom line: Louisville leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. Click into any city below to see the full detail page with 12-month trend charts, profession-specific salary data, and a breakdown of all five cost categories. If you're seriously considering a move, use our salary calculator to model your specific income against these numbers.
#1 Ranked: Louisville — cost index 79, rent $1,352/mo, income $64,731
2 of 2 cities come in below the national cost-of-living average of 111
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
622,981 residents · Kentucky
Louisville earns its position at #1 through a combination that's hard to replicate. The 79 cost index sits 32 points below the national baseline, and the $64,731 median income means purchasing power here is amplified by the low cost base. Homes list at $259,139 — $208,231 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 79, while Healthcare trails at 96 (that's pre-tax, of course).
320,154 residents · Kentucky
Lexington earns its position at #2 through a combination that's hard to replicate. The 87 cost index sits 24 points below the national baseline, and the $67,631 median income means purchasing power here is amplified by the low cost base. Homes list at $322,743 — $144,627 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 87, while Healthcare trails at 97.
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | Louisville | 79 | $1,352 | Details |
| 2 | Lexington | 87 | $1,487 | Details |
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Louisville | 4% | 6% | 0.78% | $47,896 |
2Lexington | 4% | 6% | 0.78% | $47,896 |
Cities are ranked by effective property tax rate within Kentucky. Property taxes can vary significantly between municipalities even within the same state due to local levies, school districts, and assessment practices. All data is sourced from federal agencies and verified research institutions. Cost of living indices are normalized to 100 (national median) using Zillow rent as the primary signal, with sub-category adjustments derived from regional BLS price data. Rankings are updated monthly as new data is released.
Louisville ranks #1 in Kentucky for this analysis with a cost index of 79 and median income of $64,731.
Our cost of living index uses real Zillow rent data as the foundation, indexed to 100 (national median). Sub-categories (housing, food, transport, utilities, healthcare) are derived from the overall index with regional adjustments. Data is updated monthly.
Louisville (ranked #1) has a cost index of 79 and rent of $1,352/mo, while Lexington (ranked #2) has a cost index of 87 and rent of $1,487/mo — a 8-point difference in cost of living.
City data is refreshed monthly from Census Bureau population estimates, Zillow rent and home price indices, BLS salary data, and Tax Foundation tax rates. Last updated: 2026.
The median 1-bedroom rent in Louisville is $1,352/month as of 2026, based on Zillow's Observed Rent Index. This is $543 below the national median of $1,895/month.
The median home price in Louisville is $259,139, which is 4.0× the local median income. It's on the edge of affordability for median-income households. The national median home price is $467,370.
Kentucky has a 4% state income tax rate. Combined state and local sales tax averages 6%, and the effective property tax rate is 0.78%.
This ranking was generated using data current as of early 2026. Population and income data comes from the Census Bureau's American Community Survey (5-year estimates). Rent and home price data is from Zillow's monthly releases. Tax rates are from the Tax Foundation's 2025 edition. Rankings are refreshed monthly.