| Index | Lexington-Fayette | Kentucky | National |
| Cost of living | 100 | 88 | 100 |
| Groceries | 97 | 98 | 100 |
| Health care | 98 | 97 | 100 |
| Housing | 107 | 70 | 100 |
| Transportation | 96 | 96 | 100 |
| Utilities | 96 | 95 | 100 |
| Lifestyle & Entertainment | 99 | 95 | 100 |
| Household Items | 98 | 97 | 100 |
| Education & Childcare | 89 | 94 | 100 |
Knowing the cost of living in Lexington-Fayette allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Lexington-Fayette stands at 100, marking it 0% equal to the national average.
The cost of living in Lexington-Fayette aligns closely with the national average when compared to other cities across the nation. Everyday essentials such as groceries, household expenses, health care and utility bills are priced at a level consistent with the average in similar urban areas. Lexington-Fayette residents can anticipate that their daily expenses won't be significantly higher than those in an average city, ensuring that the cost of living remains manageable.
When it comes to knowing a city, its residents are the experts. We conducted a survey with 16 locals to understand their opinions on the cost of living in Lexington-Fayette. The results indicated that 50% found it reasonably priced with decreasing prices of goods and services, while 50% viewed it as quite expensive, with increasing prices.
Is Lexington-Fayette an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Lexington-Fayette, the median home price is 11.6% higher than what most folks pay across the country, and monthly rent prices are 3.1% lower than the usual rates. Income levels in Lexington-Fayette come in at $87,569, which is 7.7% higher than the national average.
Taxes: Cities that enforce higher taxes, covering both sales taxes and income taxes, can be a factor contributing to a higher cost of living. Paying more in taxes for everyday essentials like clothing and food inevitably leads to higher expenses. A higher income tax rate can further contribute to an overall elevated cost of living. In Lexington-Fayette, the baseline sales tax rate begins at 6%, and income tax rates start at 4.5%.
Utilities: Much like any other costs, utility expenses can exhibit considerable variations, influenced by factors such as climate, available energy sources, geographic location and state regulations. The costs associated with electricity, water, heating, and waste disposal can vary significantly depending on the city or state in question. In Lexington-Fayette, the utilities index stands at 3.8% lower than the national average.
Subsidies: Some areas might offer government subsidies or assistance programs that help lower cost of living for residents. These programs can include anything from Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and crop subsidies. Areas that offer less subsidies, could see an increase in their cost of living.
The cost of living estimates displayed for Lexington-Fayette are modeled using a U.S. average baseline of 100, helping provide a useful comparison of local living expenses. Housing calculations include U.S. Census home price and rental data, while all other values are AI-assisted estimates based on regional cost patterns, climate, transportation, and everyday spending expectations. These values are intended for directional comparisons across cities.
| Cost of living index | |
| Groceries index | |
| Health care index | |
| Housing index | |
| Transportation index | |
| Utilities index | |
| Lifestyle index | |
| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $129,730 | $10,811 | $3,027 | $3,892 |
| Renters | $55,219 | $4,602 | $1,288 | $1,657 |
| State | General Sales Tax | With Max Surtax |
| Kentucky | 6% | 6% |
| State | Income Tax (Low) | Income Tax (High) |
| Kentucky | 4.5% | 4.5% |
| City | Population | Cost of Living Index | National Avg. |
| High Bridge, KY | 186 | 90 | 10.5% |
| Paris, KY | 10,056 | 89 | 10.5% |
| Nicholasville, KY | 31,738 | 93 | 7.0% |
| Wilmore, KY | 6,581 | 95 | 5.0% |
| Versailles, KY | 9,568 | 95 | 5.2% |
| Lexington-Fayette, KY | 329,532 | 100 | 0.5% |
| City | Population | Cost of Living Index | National Avg. |
| Riverside, CA | 334,324 | 140 | 40.4% |
| Vaughan, ON | 321,974 | n/a | |
| Henderson, NV | 320,734 | 126 | 26.5% |
| Corpus Christi, TX | 338,491 | 98 | 2.3% |
| Stockton, CA | 318,307 | 128 | 27.6% |
| Lexington-Fayette, KY | 329,532 | 100 | 0.5% |
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