Cost of Living in Kentucky


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    The state of Kentucky or ‘The Bluegrass State is not only famous for being the birthplace of Abraham Lincoln or Bourbon.

    But also for the majestic foothills of the Appalachian Trail, its beauty, history, and culture. Kentucky is home to about 4.4 Million people for various reasons. 

    The average cost of living in Kentucky annually is $36,574, which makes it an excellent place for people to live and raise a family.

    The state is quite affordable as it ranks as the 9th best state with the lowest living expenses according to the U.S News & World Report.  

    The state of Kentucky also has some of the best and most affordable education & recreation options and various business opportunities that make it a wonderful place to live in.

    Thus, if you are planning about relocating to Kentucky, then go through this comprehensively detailed article.


    As it will provide you with all the necessary details regarding the living costs in the state, by breaking down the average annual expenditures under different categories.

    Let’s start discovering more about the same, in the information curated below.  

    Is the living cost in Kentucky cheap?

    The state of Kentucky is considered one of the most affordable states to live in the nation. The U.S.

    News and World Report, has also ranked Kentucky as the ninth state in the country, with the lowest living costs. 

    Is Maine expensive to Kentucky?

    According to, the US state of Maine is about 19.2% more expensive than Kentucky. 

    Cost of Living in Kentucky  

    Living in Kentucky is comparatively less expensive than most of the other big states in the nation.


    According to the research, the cost of the goods and services being sold in the state is about 12.2% lower than the national average.

    Also, the relative purchasing power of people in the state depends on the salaries and wages earned by the people.

    Thus, the Kentucky cost of living is about 11.4% lower than the national average. 

    So, scroll down below to know the living expenditure of the state, under the different heads. 

    1. Groceries Prices in Kentucky

    The sum of money required for food and groceries in the south-eastern US states is comparatively low than the rest of the nation.


    Virginia and North Carolina are exceptions. The amount of average money required for food and grocery per person in a month is about $298.42.

    Also, the cost of food depends on the place where you live in the state, as some of the best places to live in Kentucky might have a little higher price as compared to others.

    As an example, the city of Louisville is a cosmopolitan place, where the average food cost is close to the national average.

    On the other hand, Lexington is a mediocre city, where the food and groceries are at affordable prices. 

    Listed below is a list declaring the prices of food and groceries in the state of Kentucky. 

    Bottle of Milk of 1 Lt$0.7
    Loaf of Bread of 0.5 Kg$2.46
    Rice Pack of 1 Kg$ 3.93
    Crate of 1 dozen Eggs$2.69
    Box of 1 kg Cheese$11.2
    Chicken Breast (1 Kg)$9.26
    Round Steak (1 Kg)$13.3
    Apples (1 Kg)$5.08
    Banana (1 Kg)$1.59
    Tomatoes (1 Kg)$3.82
    Oranges (1 Kg)$4.06
    Onions (1 Kg)$2.41
    Potatoes (1 Kg)$2.24
    Dinner at a restaurant for 2 people$55.2
    Fast food at a food joint$7.62
    Beer in a Pub$4.62
    Wine Bottle of 750 ml$1.89
    Water Bottle of 1 Lt$1.22

    How much does food cost in Kentucky?  

    On average $298. 42 is required per person, in a month on groceries and food. 

    How much does a loaf of bread cost in Kentucky?  

    $2.46 is required for buying a loaf of bread in Kentucky. 

    2. Price of Utilities in Kentucky

    From your monthly budget, make sure to take a bite out for the utility expenses. As utilities are some of the basic amenities that are required to run life smoothly in the state.


    The average money required for an individual to afford all the basic utilities is about $401.

    Hence, given below is a table, stating the average cost of living in Kentucky in terms of utilities. 

    Cable & Internet$107

    How much is an electric bill in Kentucky?  

    On an average 1,121 kWh is used in an average household and thus, the electricity bill comes to about $118.60 per month. 

    How much do utilities cost in Kentucky?  

    On average an individual needs to spend $401 monthly on utilities, which would help them to live a comfy life. 

    3. Cost For Healthcare in Kentucky  

    The state of Kentucky ranks at the 19th position, in terms of healthcare as per the research done by The Center


    The overall per capita money spend on health care is the lowest, i.e., $98. But whereas the hospitals in the state, spend one of the highest per capita in the nation, i.e., $452.

    Also, according to the report of the Bureau of Economic Analysis, the annual healthcare cost of a person in Kentucky is about $6,561.

    This amount of money that is to be spent may vary according to the health and needs of an individual and the insurance policy that the individual has. 

    The state offers Medicaid and the state health insurance exchange program that provides the residents with cheap medical insurance plans and policies.

    The prices of the plans & policies are segregated according to the metal tiers and age.

    Thus, given below is a table stating comparing the cost of insurance policies under different metal tiers and ages. 

    Metal TiersAge 21Age 40Age 60
    Expanded Bronze$314$401$852

    How much does Obamacare cost in Kentucky?  

    On average, the Obamacare plan costs about $469 for any individual who is of 40 years. $937 would be the cost of the Obamacare plan for a couple whose age is 40.

    And if you are a 40-year-old couple with either 1 or 2 children, then you would be costed $1,241 and $1,491 respectively. 

    What is the average cost of health per month in Kentucky?

    Per month the average money spent on the healthcare insurance policy is about $450.  

    How much is health insurance for a family of 4 in Kentucky?  

    On an annual basis, the living cost in Kentucky in terms of health insurance premiums for a family of 4 is about $36,570. 

    4. Kentucky Home Prices

    A typical home value in the state of Kentucky is about $207,599, according to In the past year, this cost price has increased by about 11.2%.


    The cost of houses in Kentucky is the most affordable, in terms of both owning and renting a house.

    According to the recent census data collected by, the average monthly housing cost in the state is mentioned below.

    Average monthly mortgage cost$1,178
    Average studio rent$574
    Average rent of one-bedroom$652
    Average rent of two-bedroom$760
    Average rent of three-bedroom$905
    Average rent of four-bedroom$1,067
    Average gross rent$1,187

    The cost of a house entirely depends on the location where you live in. Given below is a table, stating the typical home values in the different cities of this splendid state. 

    CityPrices of Home
    Louisville-Jefferson County$218,428
    Bowling Green$184,433
    Mount Sterling$121,968

    Are house prices dropping in Kentucky?  

    In December 2022, 16.9% of the homes in the state, were being sold at about 8.8 points below in the year. 

    How is the housing market right now in Kentucky?  

    In December, of the previous year, the prices of the house were up by about 2.5%. On average, 31.6% of the homes were sold in the entire year of 2022.

    How much are home prices up in Kentucky?  

    If compared to the past year, home prices have raised by about 11.2%.

    5. Education in Kentucky

    According to, the state of Kentucky ranks at the 45th position in the state, in terms of education.


    Despite the ranking, the government of the state, is on a mission, to make every child empowered and equipped with the right knowledge to make their future successful. 

    The state of Kentucky has about 1,477 schools. 

    This number includes; about 39 pre-schools, 657 elementary schools, 74 combinations of elementary & middle schools, 22 middle schools, 179 combinations of middle & high schools, 255 high schools, 71 P-12 schools, and about 95 technical & career-related schools.

    Kentucky has a state-funded preschool program, where they teach three to four-year-old children whose family income is less than the poverty line.

    The average tuition fees to be paid at different stages of an individual are mentioned below. 

    HeadsAverage Annual Fees
    Preschool tuition fee$6,537
    Elementary school$6,966
    Private high school$8,022
    In-state undergraduate students$6,974
    Out-of-the-state undergraduate students$18,739

    How much does public school cost in Kentucky?

    Public schools are free-to-attend places, that every student irrespective of background or family income can attend.

    This type of school is operated by the school districts and is funded by the taxpayers of the state. Each year, every public school present in the state spends more than, $11,397.

    Overall there are about 170 public school districts in the state.  

    How much does college cost for 4 years in Kentucky?

    The average cost of enrolling in-state students to a university in Kentucky would cost about $12,610 and $31,608 for out-of-the state students. 

    Is the public school in Kentucky free?  

    Yes, the public schools in Kentucky are freely funded by taxpayers and operated by the school districts.

    The parents of the students do not have to pay anything while enrolling their children in such schools. As the law of the nation says to provide free education to every student. 

    How much does Kentucky University cost?  

    The average cost of studying at the University of Kentucky in the year 20222 was $6,496 for in-state students and $18,739 for out-of-state students. 

    6. Kentucky Tax Rates  

    Paying taxes in the nation is the sole responsibility of every resident.


    Thus, mentioned below is a table, stating the different tax rates charged to the people on their income by the government of the state.

    HeadsTax rate
    Individual Income Tax Rate5.00%
    State Sales Tax Rate6.00%
    Corporate Income Tax Rate5.00%
    Combine state and average local state tax rate6.00%
    State gasoline tax rate (per gallon)26.00 cents
    State cigarette tax rate(dollars per pack of 20 cigarettes)$1.10
    Property Tax paid on Owner-occupied housing value0.82%
    Per capita tax collection on state and local property$873
    Mortgage interest rate5.12%

    What is the income taxes in Kentucky?

    The individual income tax in Kentucky is based on the Internal Revenue Code, and thus the tax rate is set at 5% after including certain deductions.  

    What is the sales tax in Kentucky?

     6% is the rate of sales tax in Kentucky.

    What is the property taxes in Kentucky?

     If you own a property in the state, then giving interest on the same, is compulsorily important for you. The amount of money paid as tax on the property is 12.2 cents per $100. 

    7. Kentucky Public Transportation  

    Transportation is a significant aspect of the living expense in the state. You should know the transportation costs and systems to visit the best lakes in Kentucky.


    In the state, about 91.7% of commuters drive on their own while going to work. On average, a typical person living in the state drives for about 11,055 miles a year. 

    Apart from the cost of vehicles spent while traveling in a personal vehicle, an individual also spends a fair amount of price gas and fuel.

    Not only this, if you own a personal vehicle, then you have to also pay a regular and fixed amount of money as a vehicle insurance premium.

    Below is a table that states the living cost in the state concerning transportation, annually. 

    Annual transportation cost for a single adult$10,292
    Annual transportation cost for a couple$12,380
    Annual transportation cost for a family of 3$13,387
    Annual transportation cost for a family of 4$14,014
    Annual transportation cost for a family of 5$14,380
    Monthly ticket for public transport$48
    Estimated price of Volkswagen Golf$21,895
    Estimated price Toyota Corolla Sedan$20,500
    Average fuel price$2.05 per gallon
    Average gas price$938
    Average insurance premium$1,300

    How much is a bus pass in Kentucky?  

    A one-way bus pass in Kentucky would cost you about $1.75, whereas a monthly bus pass would cost you about $30.00. 

    How much does public transportation cost per month in Kentucky?

    On average an adult individual in the state spends about $10,292 yearly on transportation. 

    8. Average Cost For Energy & Fuels in Kentucky


    Given below is a table that states the cost of various forms of fuels and energy being supplied to the consumers of the state. 

    Average monthly electricity bill for about 1800kWh$1440
    1 Litre of Gasoline$0.83
    Natural Gas (60 MCF)$720
    Propane (800 gallons)$1,660
    Heat Pump (12,200kWh)$976

    What is the current gas price in Kentucky?  

    The cost of natural gas per MCF is about $10.00, plus a $10 monthly charge. 

    What is the average heating bill in Kentucky?  

    Are you wondering does it snow in Kentucky or not? Well, it does snow in Kentucky, for some pretty good inches. Thus, heating devices in houses are a necessity.

    The average bill of the heating pump, which efficiently provides users with hot water and heat in Kentucky is about $0.8 per kWh.

    Annually a typical household would consume upto 12,200 kWh, which would amount to $976. 

    9. Miscellaneous Things in Kentucky  


    Given below is a table that states the cost of some of the miscellaneous items that you be purchasing during your stay in the state. 

    Gym Membership for 1 month$28.2
    Cinema Ticket for 1 person$11.2
    Simple Haircut$15.2
    Visit to a Doctor$108
    Branded Jeans$41.7
    Branded Sneakers$79.7
    Cigarette Pack$6.82
    1 week medicine of cold$7.9
    1 tube of Toothpaste$1.71
    4 rolls of toilet paper$3.39
    Hair Shampoo$5.02

    10. Make a table of all living things. With prices that are mentioned  

    The indices of the average living expense of the states are based on the US average of 100.


    The amount below 100, indicates that the items of that head are cheaper than the national average, and vice versa. The average overall living cost in Kentucky is 82.3. 

    Median Home Cost$165,900$291,700

    Cost of living in Kentucky FAQs  

    What is the cheapest rent in Kentucky?

    Knott County in Kentucky is one of the cheapest places to live in the state, where the average monthly rent of houses is about $537.  

    What factors are included in estimating the living expenses in Kentucky?

    The living expenses in Kentucky or any other place entirely depend on the total cost of food, transportation, housing, healthcare, and many other varied factors. 

    What is the minimum wage in Kentucky?  

    According to the Labour Law of the State, $7.25 is the average wage rate of the state. 


    We hope, that by this comprehensive article, we have answered all necessary questions regarding what is the cost of living in Kentucky, under various heads.

    According to the MIT living wage calculator, an individual needs to save upto $28,000 a year for living a comfortable life in the state.

    Also, US News & Rankings has ranked the 3rd state with the lowest living costs among the 12 southeastern US states.

    So, as now you know every detail about the major costs and expenses of the nation, thus you can plan the itinerary to the state accordingly.