Cost of living in Kentucky
Prices in Kentucky are 9.8% below the US average (40th highest of 51). A single filer on $75,000 pays $2,507 in state income tax. State sales tax: 6%.
Price levels in Kentucky
| BEA RPP 2024 | Kentucky | vs US (100) |
|---|---|---|
| All items | 90.2 | −9.8% |
| Goods | 96.0 | −4.0% |
| Housing (rents) | 64.3 | −35.7% |
| Utilities | 75.3 | −24.7% |
| Other services | 97.3 | −2.8% |
Metros in Kentucky
Metros whose principal city is in Kentucky. “Left over” = a single renter earning $60,000, after 2026 taxes (including the principal city’s local tax) and modeled costs.
| Metro | Population | Price level | 2-BR FMR | Infant care / wk* | Left over / mo |
|---|---|---|---|---|---|
| Louisville, KY-IN | 1,402,509 | 93.1 | $1,276 | $216 | $1,284 |
| Lexington, KY | 535,174 | 92.9 | $1,416 | $184 | $1,134 |
| Bowling Green, KY | 197,180 | 90.2 | $1,199 | $125 | $1,431 |
| Elizabethtown, KY | 128,666 | 90.6 | $1,087 | $151 | $1,585 |
| Owensboro, KY | 113,962 | 88.6 | $1,138 | $125 | $1,581 |
| Paducah, KY-IL | 102,259 | 86.1 | $1,131 | $111 | $1,529 |
*Center-based, DOL 2022 price for the metro’s principal county; a year in brackets marks an older latest-available price. “No data”: DOL publishes no price for that county, and childcare is left out of its budgets.
Also partly in Kentucky: Cincinnati, OH-KY-IN, Huntington, WV-KY-OH, Clarksville, TN-KY.
Taxes in Kentucky (2026)
| Annual tax | Single, $50,000 | Single, $75,000 | Single, $120,000 | Couple, 2 kids, $120,000 |
|---|---|---|---|---|
| Federal income tax | $3,820 | $7,670 | $17,570 | $5,640 |
| Social Security + Medicare | $3,825 | $5,738 | $9,180 | $9,180 |
| Kentucky income tax | $1,632 | $2,507 | $4,082 | $4,082 |
| Kentucky payroll taxes | $0 | $0 | $0 | $0 |
| Take-home pay / month | $3,394 | $4,924 | $7,431 | $8,425 |
Annual liability, standard deduction, Child Tax Credit; local income taxes are not included in this state-level table (see each metro). On $75,000, Kentucky’s income and payroll taxes cost $2,507 a year more than in a state without them (federal taxes are the same: $13,408).
Childcare prices across Kentucky
| Age band | Center, median county / wk (2022) | Center / yr today* | Home-based / wk (2022) |
|---|---|---|---|
| Infant (under 2) | $128 | $8,119 | $119 |
| Toddler (2) | $120 | $7,630 | $105 |
| Preschool (3–4) | $120 | $7,630 | $105 |
| School-age (5–12) | $120 | $7,597 | $103 |
Center-based infant care ranges from $90 a week in Wayne County to $222 in Gallatin County (2022 prices).
DOL National Database of Childcare Prices, 2022; median across 120 counties with 2022 data. *52 weeks × 1.2224 BLS CPI for day care and preschool, 2022 average to 2026-08. Look up a county.
Property taxes by county
Effective rate = Census median real estate taxes ÷ median home value (ACS 2020-2024), metro-area counties.
| County | Median value | Median tax | Effective rate |
|---|---|---|---|
| Campbell County | $252,000 | $2,556 | 1.01% |
| Kenton County | $244,400 | $2,395 | 0.98% |
| Bracken County | $125,000 | $1,149 | 0.92% |
| Oldham County | $393,100 | $3,519 | 0.90% |
| Boyd County | $130,700 | $1,156 | 0.88% |
| Butler County | $111,100 | $645 | 0.58% |
| Trigg County | $207,700 | $1,162 | 0.56% |
| Edmonson County | $160,300 | $881 | 0.55% |
| Allen County | $192,300 | $1,046 | 0.54% |
| Carter County | $132,800 | $649 | 0.49% |
Five highest and five lowest of 39 counties.
Energy and fuel
EIA: electricity 2025, natural gas 2024, gasoline week ending 2026-10-05.
Who moves to and from Kentucky
Census state-to-state migration flows (2024 ACS 1-year; people 1 year and over, ± margin of error at 90%). Totals cover moves between states and DC only: 95,452 in, 81,862 out (net +13,590).
- Ohio14,376 ±3,608
- Tennessee14,181 ±4,150
- Indiana7,756 ±1,564
- Florida7,326 ±1,925
- California6,856 ±2,902
- Georgia5,106 ±1,679
- North Carolina3,509 ±2,868
- Illinois3,102 ±1,145
Frequently asked questions
Is Kentucky expensive to live in?+
BEA’s Regional Price Parities put Kentucky’s overall price level at 90.2 in 2024 (US = 100), the 40th highest of 51 states and DC. Housing is 64.3 and goods 96.0.
Does Kentucky have a state income tax?+
Yes. A single filer earning $75,000 owes about $2,507 in Kentucky income tax under 2026 law (3.3% of pay).
What is the sales tax in Kentucky?+
The state rate is 6% (as of 2026-10-13); groceries are exempt from the state rate. Local sales taxes can add to this.
What is the most affordable metro in Kentucky?+
For a single renter earning $60,000, Elizabethtown, KY leaves the most each month after taxes and modeled costs ($1,585), and Lexington, KY the least ($1,134).