Composite index
92.5
100 = US average
All states
MERIC Q1 2026Low-to-high rank #18
MERIC Q1 2026Low-to-high rank #18Kentucky Cost of Living
Index 92.5 · housing 78.1 · 7.5 points below the US average.
By Sammy S. · Founder · AuthorUpdated for 2026
92.5
Composite index
#18
National rank
78.1
Housing index
$108,108
$100k ≈ US
Kentucky cost of living snapshot
Kentucky's composite index is 92.5, ranking #18 among the 50 states and DC where #1 is the lowest cost of living. The US average equals 100.
National rank
#18
#1 is lowest cost
Vs US average
−7.5
Index points
$100k local ≈ US
$108,108
Purchasing-power illustration
Compare Kentucky with another state
Compare any two states
Composite index, category costs, and equivalent-salary examples.
Category indexes
What drives costs in Kentucky
Each category is indexed to the US average of 100. Housing often explains most of the gap between states.
Grocery
101.4
Near US average
Housing
78.1
Below US average
Utilities
87.8
Below US average
Transportation
95.8
Near US average
Health care
92.4
Below US average
Misc. goods & services
101.6
Near US average
Highest category index
Misc. goods & services
101.6
This is Kentucky's highest category relative to the national baseline, though it may not be your household's largest monthly expense.
Lowest category index
Housing
78.1
This category compares most favorably with the US average among the six categories in the state profile.
Kentucky salary purchasing-power examples
These illustrations convert salaries using the composite indexes. They are not after-tax calculations and do not replace local housing or tax research.
| US-average salary | Needed in Kentucky | Difference |
|---|---|---|
| $50,000 | $46,250 | −$3,750 |
| $75,000 | $69,375 | −$5,625 |
| $100,000 | $92,500 | −$7,500 |
| $150,000 | $138,750 | −$11,250 |
| $250,000 | $231,250 | −$18,750 |
$50,000 US-average lifestyle
Needed in Kentucky: $46,250
$75,000 US-average lifestyle
Needed in Kentucky: $69,375
$100,000 US-average lifestyle
Needed in Kentucky: $92,500
$150,000 US-average lifestyle
Needed in Kentucky: $138,750
How Kentucky's cost of living compares nationally
At 92.5, Kentucky is 7.5 points below the US average of 100. Housing is 78.1, while groceries are 101.4.
Is Kentucky an affordable state to live in?
On the statewide benchmark, Kentucky is less expensive than the US average. Its 92.5 composite indicates a representative market basket costs about 7.5% less than the national baseline. Affordability ultimately depends on household income, after-tax pay, housing choice, debt, and required services—not the index alone.
Household planning
What Kentucky's cost of living can mean for your household
The 92.5 composite is a useful starting point, but households experience Kentucky prices differently based on housing, family size, work location, and ownership.
Renters
Compare neighborhood rent and utilities with the 78.1 housing index; statewide averages can hide large metro differences.
Homeowners
Add mortgage costs, property taxes, homeowners insurance, maintenance, and post-purchase assessments.
Families
Groceries benchmark at 101.4, but childcare, healthcare, and the size of the home may matter more.
Remote workers
Confirm whether pay changes by work location, then compare state taxes, workspace costs, and travel needs.
How to build a realistic Kentucky moving budget
Use the index to screen destinations, then replace broad averages with prices tied to the address and household you are considering.
1. Adjust salary
Apply the 92.5 index, then calculate after-tax pay at the expected salary.
2. Price housing
Use current local listings and include deposits, utilities, insurance, parking, and commute.
3. Add household needs
Estimate childcare, healthcare, groceries, vehicles, debt payments, and recurring services.
4. Stress-test the move
Include moving costs, emergency savings, job risk, and room for prices or insurance to increase.
Why costs vary within Kentucky
Metro and neighborhood differences
Employment centers, housing supply, commute access, schools, and local amenities can create large price gaps between communities even when they share the same statewide index.
Household-specific differences
Renters, homeowners, families, retirees, and commuters buy different combinations of housing, transportation, healthcare, utilities, and services, so their effective cost changes will differ.
Calculation details
How Kentucky's 92.5 index is determined
MERIC averages C2ER Cost of Living Index results for participating urban areas in Kentucky. The result is a statewide comparison benchmark for Q1 2026, not an exact city or household budget.
Kentucky equivalent-salary formula
Salary × 92.5 destination index
Origin index
Grocery
101.4
Housing
78.1
Utilities
87.8
Transportation
95.8
Questions to ask before moving to Kentucky
What salary in Kentucky matches my current purchasing power?
How do local rents or home prices compare with the statewide housing index?
What is after-tax pay at my expected salary and filing status?
How do insurance, healthcare, childcare, and utilities compare?
Does the local job market support the equivalent salary I need?
Do wages, services, and lifestyle outweigh the cost difference?
Employment decisions
How to evaluate a job offer in Kentucky
A salary can look higher while buying less after local prices and taxes. Compare the complete offer rather than applying the cost-of-living ratio to base pay alone.
Purchasing-power salary
Use Kentucky's 92.5 index to estimate the gross salary needed for a comparable market basket.
After-tax paycheck
Calculate federal, state, local, and payroll taxes at the actual filing status and compensation.
Benefits and work costs
Compare health premiums, retirement match, paid leave, commuting, parking, and remote-work support.
Housing and moving costs
Price a realistic neighborhood and include deposits, closing costs, movers, travel, and temporary housing.
Costs the Kentucky index does not fully capture
The C2ER market basket standardizes consumer-price comparisons, but several major household decisions require separate research.
Taxes and government charges
Income tax, property tax, tax credits, vehicle registration, and address-specific local taxes vary by household.
Insurance and care needs
Home, auto, health, flood, and wind insurance—as well as childcare and long-term care—can vary sharply.
Debt, savings, and lifestyle
Student loans, retirement goals, travel, private school, hobbies, and family support are personal budget items.
Why this is not a personal Kentucky budget
The statewide index averages participating urban areas and a standard market basket. Your neighborhood, housing size, commute, family needs, and spending mix can produce a very different result. Pair the index with local listings and tax tools before making a move decision.
Kentucky cost of living FAQs
Kentucky's composite cost-of-living index is 92.5 in MERIC's Q1 2026 data (US average = 100).
Kentucky ranks #18 among the 50 states and DC, where #1 is the lowest cost of living / highest purchasing power.
Kentucky's 92.5 index is 7.5 points below the US average of 100.
About $108,108 at the US average would provide similar purchasing power to $100,000 in Kentucky, based on the composite indexes.
Category indexes are grocery 101.4, housing 78.1, utilities 87.8, transportation 95.8, health 92.4, and miscellaneous 101.6.
Kentucky's housing index of 78.1 is below the US average, which helps keep the composite index lower.
No. The cost-of-living index measures consumer prices. Review income, sales, property, and total tax-burden comparisons separately when planning a move.
No. The statewide figure averages participating urban areas. Local rents, home prices, and services inside Kentucky can differ substantially.
Use the state-pair selector on this page to compare composite and category indexes, plus equivalent-salary examples in both directions.
Use Kentucky's index as one factor. Compare expected wages, after-tax pay, housing, insurance, healthcare, schools, and job opportunities before relocating.
MERIC updates quarterly from C2ER survey data. This profile uses Q1 2026.
It is best for statewide comparisons and salary equivalence. Confirm local housing, utilities, childcare, and taxes for your specific destination.
No. The 92.5 index compares Kentucky's price level with the US average during Q1 2026. Inflation measures how prices change over time.
Start with Kentucky's 78.1 housing index, then verify current rent, deposits, renter insurance, utilities, parking, and commuting costs for the specific neighborhood.
Compare home prices and mortgage costs, then add address-specific property tax, homeowners insurance, maintenance, utilities, association fees, and any post-purchase reassessment.
Equivalent salary scales a broad market basket. It does not know your tax filing status, housing choice, family size, childcare, healthcare needs, debt, savings goals, employer benefits, or local neighborhood prices.
Kentucky's 92.5 composite is below the US average, but affordability still depends on local wages, after-tax income, housing, debt, and household needs.
There is no single comfortable salary. Start by converting your current budget with Kentucky's 92.5 index, then add taxes, local housing, insurance, childcare, debt payments, savings goals, and household-specific spending.
Compare the purchasing-power-adjusted salary, after-tax pay, health and retirement benefits, paid leave, commute, housing near the job, and one-time moving costs. Base salary alone can hide a weaker overall offer.
The cost-of-living index is one input for retirement planning. Retirees should separately compare housing, property-tax relief, retirement-income taxes, Medicare and supplemental coverage, long-term care, transportation, and access to family and healthcare.
Compare Kentucky with similar-index states
South Carolina
Minnesota
Nebraska
OhioRelated state tax tools
Data period Q1 2026. Statewide urban-area average only; not financial, legal, or tax advice.