Kentucky Cost of Living & Economic Score

Federal Bureau of Economic Analysis data on price levels, real income, and household-budget impact for Kentucky. Last updated 2024.

B
InflationRank Score
83 / 100
Kentucky ranks above the U.S. national average for cost-of-living-adjusted economic conditions.
Cost level (RPP)
88.0
12% below U.S. average
Real per-capita income
$50.0K
9K below U.S. ($59K)
Property tax
0.85%
vs U.S. avg 1.02%
Sales tax
6.00%
combined state + local avg
State income tax (top)
4.50%
top marginal rate
Home insurance (avg)
$2,010/yr
~$300K coverage

Cost of living in Kentucky

According to the U.S. Bureau of Economic Analysis, prices in Kentucky run 12.0% below the U.S. average (Regional Price Parity index 88.0 on a base of 100). The state sits in the South region. That puts it among the more affordable states in the country — in the bottom tier nationally for cost of living.

Real per-capita personal income — what local residents actually earn after adjusting for cost of living — is $50.0K (vs $59K nationally). Locals have somewhat lower real purchasing power than the U.S. average, even after accounting for the state's cheaper or comparable price level.

Notable cost factors: state-and-local taxes are roughly in line with the U.S. average.

Cost of living in Kentucky's major metro areas

How does cost of living in Kentucky compare to other states?

West Virginia B- South Dakota B Iowa B Kansas B Louisiana B-

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Frequently Asked Questions

What is the cost of living in Kentucky?

Kentucky's Regional Price Parity (RPP) is 88.0 (U.S.=100), meaning prices are 12.0% below the national average. Source: U.S. Bureau of Economic Analysis, 2024.

Is Kentucky affordable to live in?

Kentucky has an InflationRank score of 83/100 (grade B), reflecting above-average affordability relative to most U.S. states. Real per-capita income is $50.0K (U.S. avg $59K).

What is the InflationRank score for Kentucky?

Kentucky's InflationRank score is 83/100 (grade B). The score blends cost burden (60%), inflation pressure (25%), and income resilience (15%), using Bureau of Economic Analysis and Bureau of Labor Statistics federal data.

About the InflationRank Score

The InflationRank Score is a proprietary 0–100 composite that summarizes a place's cost-of-living and economic conditions on a familiar A–F grading scale. Higher scores reflect a better cost-of-living-adjusted economic situation.

The composite weighs three dimensions sourced from federal government datasets: cost level (how local prices compare to the national average), inflation pressure (recent direction and pace of cost movements), and income resilience (real, cost-adjusted earning power of local residents). The score is anchored to the U.S. national average and reviewed annually as federal data refreshes.

Underlying data is drawn from authoritative federal economic agencies and public housing datasets. See full data sources →