Cost of Living for Kentucky (2026)
Kentucky (KY) Key Facts
Cost of Living Index
90
National Average Index
100
Median Household Income
$55,000
Approximate Median Rent (1 B R)
$850/month
State Income Tax Rate
4%
How This Calculator Works in Kentucky
This cost of living calculator helps you compare salaries between Kentucky and other states or cities by adjusting for purchasing power differences. Enter a salary and a target location to see what equivalent income you would need. It uses Kentucky's cost of living index of 90 relative to the national average of 100 to provide an accurate comparison.
Kentucky Overview
Kentucky has a cost of living index of 90, where 100 represents the national average. Kentucky has one of the lowest costs of living in the nation. Louisville and Lexington are moderately more expensive but still below the national average. The median household income is $55,000, which has a purchasing power equivalent of approximately $61,111 in an average-cost location.
How Kentucky Compares
Kentucky's cost of living index of 90 compares to Tennessee's 90 and Virginia's 104. Residents in Kentucky benefit from lower costs compared to the national average, meaning salaries stretch further here. The most affordable states like Mississippi (84) cost roughly 7% less than Kentucky, while the most expensive like Hawaii (192) cost 113% more.
| State | Top Rate | Notes |
|---|---|---|
| Tennessee | COL Index: 90 | Tennessee has a cost of living index of 90 and a median household income of $56,000. It has a similar cost of living to Kentucky. |
| Virginia | COL Index: 104 | Virginia has a cost of living index of 104 and a median household income of $80,000. It is more expensive than Kentucky. |
| West Virginia | COL Index: 84 | West Virginia has a cost of living index of 84 and a median household income of $48,000. It is more affordable than Kentucky. |
The national average cost of living index is 100. Kentucky's index of 90 is below the national average. States like Mississippi (84) and West Virginia (84) have the lowest cost of living, while Hawaii (192) and DC (148) have the highest. Kentucky's median household income of $55,000 should be evaluated alongside its cost of living to understand real purchasing power.
Tips for Kentucky Residents
- 1Kentucky has one of the lowest costs of living in the nation. Louisville and Lexington are moderately more expensive but still below the national average.
- 2Kentucky's median household income of $55,000 has a real purchasing power of about $61,111 when adjusted to the national average. Compare this figure, not the raw salary, when evaluating cross-state moves or job offers.
- 3Kentucky's top state income tax rate of 4% further reduces purchasing power beyond what the cost of living index alone shows. Factor in taxes when making state-to-state comparisons.
- 4When comparing job offers between states, adjust salaries by the cost of living index. A $60,000 salary in a state with an index of 90 provides more purchasing power than $70,000 in a state with an index above 105.
- 5Look beyond the state average — costs can vary dramatically within Kentucky between metro areas, suburbs, and rural communities. Research the specific city or county where you would live.