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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 — we had to double-check this one — with rent at just $1,352/month — 29% less than the $1,895 national median. Here are the numbers, sourced from fe…
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 — we had to double-check this one — 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.
Tax burden isn't just income tax. And from what we can tell, 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. Pretty standard for this type of city. On a $75,000 salary, the estimated take-home in #1 Louisville is $54,710/year.
Louisville is one of the cheaper options here. Rent is $1,352/month, which is lower than most cities in this ranking. The cost index is 79. Income sits at $64,731. That's about what we'd expect given the state context.
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
So, Louisville. About what you'd guess. Cost index of 79, rent at $1,352/month. It's lower than the national average. Median income is $64,731, which is below the national median. You get the picture.
320,154 residents · Kentucky
What does daily life actually cost in Lexington? Start with the 26% rent-to-income ratio — tight but manageable for most households. On the category level, Housing (index 87) is where the real savings show up, while Healthcare (index 97) is the line item most likely to surprise newcomers. Income at $67,631 and homes at $322,743 round out a profile that ranks #2 for clear reasons.
| 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 |
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.