Kentucky's cost of living index is 94 — 6.0% below the US average of 100 (MERIC (C2ER index), Second Quarter 2026). The index averages the cities that take part in the survey, so it describes those areas rather than the whole state. Compare purchasing power and equivalent salaries across states.
CoL Index
94.0
US avg = 100 · MERIC (C2ER index), Second Quarter 2026
vs. National Avg
-6.0%
Less expensive
Median Income
$64,526
Median household · Census ACS 2024 1-year
Equiv. at US Avg
$68,645
Same purchasing power
| CoL Index | 94.0 | MERIC (C2ER index), Second Quarter 2026 — composite, US avg = 100 |
| vs. National | 6.0% | Below average cost |
| Median Household Income | $64,526 | Kentucky median — Census ACS 2024 1-year |
| National Purchasing Power | $68,645 | Equivalent $ at US avg CoL |
| Overall Category | Moderate | CalcHub band of the index: Low < 90 ≤ Moderate < 100 ≤ High < 115 ≤ Very High |
| Population | 4,606,864 | Census Bureau estimate, July 1, 2025 |
With a cost of living index of 94, Kentucky is 6% below the national average. Lower costs in Kentucky mean your dollar goes further. A salary of $64,526 in Kentucky provides the equivalent purchasing power of $68,645 in a state at the national average.
Housing is typically the largest driver of cost of living differences between states.Kentucky's typical home value of $232,600 is well below the U.S. typical value of $368,700 (Zillow Home Value Index, August 2026). Other factors include state income tax (3.5% top rate in Kentucky), sales tax (6% state rate), and property taxes (0.71% effective rate).
