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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Kentucky is a genuine bargain: 2 of the 2 cities in this ranking come in below the national cost-of-living average. Louisville leads at an index of 79 — for better or worse — with rent at just $1,352/month — 29% less than the $1,895 national median. Here are the numbers, sourced from federal data u…
#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
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Louisville | 4% | 6% | 0.78% | $47,896 |
2Lexington | 4% | 6% | 0.78% | $47,896 |
Kentucky is a genuine bargain: 2 of the 2 cities in this ranking come in below the national cost-of-living average. Louisville leads at an index of 79 — for better or worse — with rent at just $1,352/month — 29% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026.
Dive into Louisville's numbers: cost index 79 (32 points below national average), rent $1,352/month, income $64,731, and a home price of $259,139. The city's cost profile isn't flat — Housing is the cheapest category at 79, while Healthcare runs 96. As a major city with 622,981 residents, amenities and job markets are robust.
If you're ready to act on this, three things to do next: 1) Click into the city pages for the top 3 and check rent trends — direction matters more than the snapshot. 2) Run your income through the salary calculator for a personalized cost comparison. 3) Compare your top two picks head-to-head on our comparison page. The data is here; the decision is yours.
| Rank | City | Combined Rate | Income Tax | Sales Tax | Cost Index | |
|---|---|---|---|---|---|---|
| 1 | Louisville | 10.8% | 4% | 6% | 79 | Details |
| 2 | Lexington | 10.8% | 4% | 6% | 87 | Details |
622,981 residents · Kentucky
Why Louisville ranks #1: the numbers tell a clear story. At 79 on the cost index, residents save roughly 32% less than the typical American. Rent sits at $1,352/month while the median household pulls in $64,731/year. The Housing category is particularly strong at 79, though Healthcare (96) lags behind. Home prices average $259,139 — $208,231 below the national median.
320,154 residents · Kentucky
At $1,487/month for rent and a cost index of 87, Lexington is pretty much what you'd expect from a mid-size city in this part of the country. Income is $67,631. About what you'd guess. Hard to argue with that.
We combine state income tax rate, combined sales tax (state + local), and effective property tax rate into a total tax burden score. Cities are ranked by this combined metric — lower is better for your wallet. 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.