Living in Kentucky: Income, Housing, Taxes & Cost of Living (2026)
By Wealthvieu
·
Updated
Table of Contents
Kentucky at a Glance
| Metric |
Value |
National Rank |
| Population (2024) |
4.5 million |
26th |
| Median household income |
$60,407 |
44th |
| Median home price |
$215,000 |
8th lowest |
| Cost of living index |
88 |
9th lowest |
| State income tax |
4.0% flat |
Below average |
| Sales tax |
6% |
Below average |
| Property tax (effective rate) |
0.83% |
Below average |
Income and Housing
| City/Metro |
Median Income |
Median Home Price |
Median Rent (2BR) |
| Louisville |
$62,400 |
$250,000 |
$1,100 |
| Lexington |
$64,200 |
$280,000 |
$1,150 |
| Bowling Green |
$52,400 |
$220,000 |
$950 |
| Covington/NKY (Cincinnati area) |
$58,800 |
$230,000 |
$1,050 |
| Owensboro |
$52,200 |
$180,000 |
$800 |
| Frankfort |
$55,400 |
$195,000 |
$850 |
Kentucky Pros and Cons
| Financial Pros |
Financial Cons |
| Very low cost of living (88 index) |
44th in median household income |
| Low flat income tax (4.0%) |
Limited high-paying job markets |
| Affordable housing ($215K median) |
Higher poverty rate than average |
| Louisville/Lexington are growing |
Healthcare outcomes below average |
| Low property taxes (0.83%) |
Rural areas have declining opportunities |
| Bourbon/horse/auto industry |
Below-average educational attainment |
Related: Cost of Living by State | State Income Tax Rates | Property Tax by State
