Cost of Living in Kentucky

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Cost of Living in Kentucky

Kentucky, formally the Commonwealth of Kentucky, is a state in the United States that is located in the east south-central area. Kentucky is one of four U.S. states constituted as a commonwealth, despite being referred to as the “State of Kentucky” in the law that established it (since the name state was used in Kentucky’s first constitution) (the others being Virginia, Pennsylvania, and Massachusetts). Kentucky, which was once a part of Virginia, became the 15th state to enter the Union in 1792. Kentucky is the 37th-largest and 26th-most populous state in the United States.

Living in Kentucky is less expensive than living in the United States on average. According to data from the Bureau of Economic Analysis, the state’s products and services cost 12.2 percent less than the national average. Kentucky has the fifth lowest overall cost of living when compared to all other states. Living in densely populated urban metro areas is generally more expensive than living in more rural locations.There are five metropolitan areas in Kentucky. The Lexington-Fayette metro region is the most expensive in the state, with goods and services costs 9.4 percent lower than the national average and 2.8 percent higher than the statewide average.

Housing Costs in Kentucky

One of the most significant components of cost of living is housing. The average home in Kentucky is worth $135,300, which is $69,600 less than the national median home value of $204,900. A home built in 1939 or earlier is worth $116,600 on average across the state, while a home built in 2014 or later is worth $220,700. The average Kentucky renter pays $741 per month, which is $282 less than the national median rent of $1,023 per month. A one-bedroom apartment in the state costs $587 per month, while a property with five or more bedrooms costs $1,058. Renters account for 33.0 percent of all occupied residences in the state, which is lower than the national average of 36.2 percent and the 20th lowest rate of any state.

Transportation Costs in Kentucky

Transportation costs can be a considerable part of the overall cost of living. Commuters in Kentucky drive 91.7 percent of the time, compared to 85.5 percent nationally. The average motorist in the state travels 11,055 miles per year. Taking into account average fuel economy and average gas prices (standard gasoline in Kentucky cost an average of $2.05 per gallon in mid-2020), the average Kentucky motorist can expect to spend $938 on petrol alone in a year. Other transportation costs, such as car insurance prices, can differ from one state to the next. According to data from, the average vehicle insurance rate in Kentucky is $1,300, which is lower than the national average of $1,517. According to EPI data, the average single adult in the state spends $10,292 on transportation each year.

Kentucky Health Care Expenditures

Out-of-pocket costs and insurance premiums for health care are relatively inexpensive in Kentucky, assuming at least a basic level of health insurance coverage. The average cost of health care for a single adult in the state is $3,679 per year, compared to $4,266 nationally. The average yearly health care costs for a family of four are $11,086 $1,863 less than the national average of $12,950.

Food Prices in Kentucky

Another daily item that has a big impact on an area’s overall cost of living is food. The cost of food varies from state to state, according to data from the United States Department of AgricultureA single adult in Kentucky spends an average of $2,932 on food each year, while a family of four spends an average of $8,467. To put things in perspective, a single adult’s annual food expenditure is $3,240, while a family of four’s annual food cost is $9,354.These figures are based on a nutritionally appropriate diet purchased from a grocery shop and prepared at home.

Costs of Child Care in Kentucky

Child care costs contribute thousands of dollars to a family’s annual budget. Kentucky’s average yearly child care expenditure for a four-year-old is $6,115, far below the national average of $8,903. In Kentucky, it costs an average of $12,978 a year to care for a four-year-old child and an eight-year-old child, compared to a national average of $15,853.

Taxes in Kentucky

Taxes are one of the few expenses that differ significantly from one state to the next. The average adult working in Kentucky pays $5,723 in taxes per year, which is lower than the national average of $6,542. This includes state and federal income taxes, as well as Social Security contributions and Medicare payroll. When federal taxes are excluded and state and local taxes, such as property and sales taxes, are included, Kentucky’s state and local tax burden is lower than the national average. Kentucky’s per capita state tax receipts are $2,699 per year, compared to the national average of $3,151.

County Costs of Living (or County Equivalents)

The cost of living varies not only from state to state, but also from neighbourhood to neighbourhood within states. Boone County, which includes Florence, has the highest overall cost of living in Kentucky, at $84,104 per year, much above the statewide average of $71,904 per year. Meanwhile, Clay County has the lowest cost of living in Kentucky. The average yearly cost of living in the area for a family of four is $61,737, which is $10,167 less than the state average. Clay County’s most populous community is Manchester.

How Much Does It Cost to Live in Kentucky?

Kentucky’s average annual cost of living is $36,574. According to the most recent personal consumption expenditure data from the Bureau of Economic Analysis’ newest Personal Consumption Expenditures data, the average cost of living in Kentucky is $36,574 per person. Living in Kentucky is generally inexpensive; according to U.S. News & World Report, Kentucky has the ninth-lowest cost of living in the country. In the Southeast, where the cost of living is statistically lower than the rest of the US, Kentucky is the third most cheap state out of 12, trailing only West Virginia and Arkansas.

How Much Money Do You Need in Kentucky to Live Comfortably?

The average single, childless individual working a standard 40-hour work week 52 weeks a year needs to make $13.48 per hour, or $28,038 per year, according to MIT’s Living Wage Calculator. According to U.S. News & World Report’s Affordability Rankings, Kentucky has the ninth-lowest cost of living in the country. Kentucky has the third-lowest cost of living in the Southeast, out of a total of 12 states. In its 2021 Third Quarter Cost of Living data series, MERIC ranks Kentucky as the 20th most affordable state. According to MERIC, Kentucky is still among the 25 states with the lowest cost of living.

What City in the Southeast Has the Lowest Cost of Living?

The three cities with the lowest cost of living, according to the Council for Community and Economic Research’s Second Quarter Cost of Living Index, are listed below to give you an idea of how Kentucky’s cost of living compares to the rest of the South.

Jackson, Mississippi Is a City in Mississippi

Mississippi’s capital and most populated city also happens to have the lowest cost of living in the whole Southeast. The “City with Soul” was home to well-known blues, gospel, and jazz musicians.

Tupelo, Mississippi Is a City in Mississippi

Tupelo has the second-lowest cost of living in the Southeast after Atlanta. The city, which is the seat of Lee County in northern Mississippi, is a lively centre of Southern culture and the birthplace of Elvis Presley.

Knoxville Is a City in Tennessee

Knoxville is the third-most populous city in Tennessee and has the third-lowest cost of living in the South. Mountain Dew and personalities like Kenny Chesney were born there.

Prior to Relocating to Kentucky

Moving to Kentucky in the fall or winter is the greatest time to do so because spring is wet and summers are generally hot and humid, making it difficult to relocate.

  • If you have no other choice, make sure you have everything you need for a seamless move-in, such as a fully charged mobile phone, tools, first-aid kit, provisions, and so on.
  • To avoid heatstroke, drink plenty of water and wear a hat.
  • If you’re moving to a larger city, plan ahead of time because there’ll be a lot of traffic there.
  • Check for parking restrictions.
  • Find out who will be providing your utilities in the county where you will be relocating.
  • Locate the nearest storage facility; you may require it.

Kentucky’s Climate Is Humid Subtropical, With Abundant of Rainfall

Temperatures range from 23 degrees Fahrenheit in the winter to over 88 degrees Fahrenheit in the summer. Kentucky enjoys temperate weather, not as cold as the northern states and not as hot as the Deep South states. Kentucky’s climate is ideal for outdoor activities such as hiking, biking, and horseback riding. It’s also ideal for agriculture, with some of Kentucky’s best horses, maize, soybeans, minor grains, hay, and tobacco flourishing. In the spring and summer, between the months of March and September, unfavourable weather is most common. As a result, it’s a good idea to keep an eye out for inclement weather before relocating.

Cities With the Most Population

Kentucky contains 425 cities, each of which is classified into two categories.
* First Class:Mayor-Alderman Government
* Home Rule:All Other Forms of Government
Frankfort is the state capital of Kentucky. You might be asking why Kentucky is known as the Commonwealth of Kentucky. It is merely an old English term for a political society formed to serve the public good. The people’s consent is used by the government to make choices. Louisville is the state’s largest city.
* Lexington: Home of the University of Kentucky
* Covington: A suburb of Cincinnati
* Bowling Green: GM’s Corvette production base
* Danville
* Jeffersontown
* Georgetown: Toyota manufacturing base
From living on a ranch outside of Lexington to renting a condo in downtown Lexington, you can sample a variety of lifestyles.

Living in Kentucky Has Its Advantages

Kentucky Has A Strong Workforce
The state is known for its auto manufacturing business, which may come as a surprise to people who are familiar with Michigan and Detroit’s traditions and image. Kentucky’s unemployment rate is slightly higher than the national average, but it is less than 0.5 percent in most months.
Kentucky Has a Fantastic Central Location
If you start living in Kentucky, you will be at the heart of the United States’ south-central region.
Many cities, including St. Louis, Nashville, and Cincinnati, are within driving distance. If you’ve always wanted to visit that region of the country, living in this state is ideal.

Living in Kentucky Has Its Drawbacks

The Weather Can Be Pleasant, But It Can Also Be Terrifying

If you’re moving to Kentucky, you’ll want to pay attention to severe storm warnings. Tornado warnings are no laughing matter. It won’t happen every day, but there will be at least a few of storms per year.
More Vehicle-Animal Collisions During Hunting Season
Living in Kentucky means being in close proximity to a diverse range of wildlife. When hunting season starts, you’ll notice an increase in the number of animals attempting to cross the road while you’re driving. Deer season is notorious for being the most dangerous, as accidents are more common. Ensure that your vehicle is properly insured, and try to drive cautiously.
Kentucky’s Income Tax Rate Is a Flat 5% For All Residents
Despite the fact that Kentucky is one of the more income-friendly states in the US, recent events have transferred the burden of paying taxes to individuals with the lowest income levels.
The majority of them are the result of recent sales tax revisions.


Those that relocate to Kentucky understand why it is such a wonderful location to live. From its high-quality healthcare to its rich history, art, and culture to its friendly people, affordable housing, and beautiful natural surroundings, the city has it all. Kentucky is a lovely place to visit if you want to experience southern hospitality. It also has one of the country’s most stable economies, making obtaining work considerably easier. Healthcare, manufacturing, retail, and education are the most important industries in the city. Do you have any plans to relocate to Kentucky soon? You may make your relocation easier by hiring one of Kentucky’s best movers. Rather than dealing with all the heavy lifting, choose to move in ease.

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