Are you planning for moving to Kentucky, then you can find some valuable information about it here? Kentucky lies in the southeastern region of the USA and is also known by the nickname “The Bluegrass State”. Although this state is known for the agriculture sector with large pastures seen in most areas, in recent few years the state is growing economically in other sectors. The cost of living in Kentucky is lower than the US national average. The job market here is average with nice opportunities in some sectors. Louisville and Lexington have some of the top employers which are also contributing to the economy of the state. 

Kentucky has a flat income tax rate of 5% and a sales tax rate of 6% which is lesser than the national average. The education quality is good in Kentucky with better high schools and colleges here. When you move to Kentucky, you will find nice housing facilities with cheaper rates. This state has very good safety with lesser crime rates. Several picturesque places here can make your holidays pleasurable. You can explore more detailed information about Kentucky below that can make your stay better.

Cost of Living

According to worldpopulationreview, Kentucky’s cost of living index is 90.9. It is comparatively lower than the united states index average of 100.

The cost of living in Kentucky is lower than it is across the country on average. Moreover, according to estimates from the Bureau of Economic Analysis, generally cost of living is 12.2% less in the state than they do on average nationwide. Compared with all other states, Kentucky has the fifth-lowest overall cost of living.

Five major metropolitan areas are located in Kentucky. The Lexington-Fayette metro area is the most expensive in the state, where the cost of living is 9.4% less than the national average and 2.8% more than the state average.

Median Home Value$135,300.00$204,900.00
Median Monthly Rent$741.00$1,023.00
Average Car Insurance$1,300.00$1,517.00
Healthcare cost for Single Adult$3,679.00$4,266.00
Healthcare cost for family of four$11,086.00$12,950.00
Food cost for Single Adult$2,932.00$3,240.00
Food cost for family of four$8,467.00$9,354.00
Annual Child care cost$6,115.00$8,903.00
Annual Taxes$5,723.00$6,542.00

Job market

According to U.S. News, Kentucky ranks 45 in the nation for employment.
In Kentucky, the average household income is $67,110, While the median household income is $48,392.

The most wanted job in Kentucky is Nurse practitioner With an Average annual salary of $99,790.

According to the U.S. Bureau of Labor Statistics reports, Kentucky’s current unemployment rate in February 2021 was 5.2 %, lower than the 6.2% average Unemployment Rate in the United States.

It is 13.3x more common for a worker in Kentucky to be a Sailor or Marine Oiler than all U.S. workers.

The Most Common Jobs in Kentucky

RankJobLocal Jobs .Mean Local Salary .
1Retail salespersons31,760$20,810
3Laborers and freight, stock, and material movers, hand21,720$21,066
4Combined food preparation and serving workers, including fast food21,070$13,768
5Registered nurses19,070$52,665
6Team assemblers18,340$30,334
7Waiters and waitresses17,040$13,672
8Truck drivers, heavy and tractor-trailer15,980$33,312
9Customer service representatives15,930$25,310
10Janitors and cleaners, except maids and housekeeping cleaners15,300$18,796

highest-paying jobs in Kentucky

RankJob DescriptionAverage Salary iEntry Level
1Family Medicine Physicians$193,720$94,210
2General Pediatricians$177,340$103,730
3Nurse Anesthetists$158,100$120,680
4Judges, Magistrate Judges, and Magistrates$134,310$107,200
6Chief Executives$124,100$58,880
7Petroleum Engineers$118,350$50,700
8Computer and Information Systems Managers$115,780$65,440
9Architectural and Engineering Managers$115,250$66,770

Top employer

1Uk Healthcare Clg DentistryLexington
2Humana IncLouisville
3Norton Hospital BehavioralLouisville
4Cualquier Lavado Sa De CvHopkinsville
5St Elizabeth HealthcareEdgewood
6Uk Albert B Chandler Hosp PvlnLexington
7GE Appliances A Haier CoLouisville
8Ford Motor KY Truck PlantLouisville
9Corrections DepartmentFrankfort
10King’s Daughters Home HealthAshland

Tax rates

In Kentucky the tax rate is flat at 5%, the sales tax is 6%, and the average property tax is $1,257 a year. In addition to the sales tax and property taxes, the state income tax is about average for the United States.

Kentucky Income Tax:

Kentucky state has a flat income tax rate of 5% applicable to dividends and interest income.

Kentucky Sales Tax:

Kentucky state is ranked 17 nationwide. In Kentucky, the state sales tax is 6.00% and the average local tax rate is 0.00%.

Kentucky Property Tax:

According to the U.S. Census Bureau, Kentucky state’s median property tax is $ 1,042 with an effective property tax rate of 0.79%.

Kentucky Gas Taxes:

Kentucky state has a $0.26 / gallon gasoline tax and $0.23 / gallon diesel tax.

Kentucky Cigarettes Tax:

Kentucky state ranks 37th out of 50 states in the cigarette tax. In Kentucky, the cigarette tax per pack of 20 is $1.10.


Kentucky is ranked 31st for its economic outlook and 26th for its economic performance rank.

Kentucky is the 39th most exposed state financially to COVID-19.

In Kentucky, 46% of all employees are employed in sectors with High or Medium-High exposure to COVID-19, totaling 989,240 employees.

There are 4,467,673 citizens in Kentucky, and population growth for the last five years has been 0.2%, placing the state 32 among the 50 US states. 

Over the five years to 2019, Kentucky’s gross domestic product reached $189.4bn, representing an increase of 1.0%. The growth of Kentucky’s Gross State Product is 42nd out of all 50 US states. 


According to U.S. News, Kentucky is ranked 36th overall in the United States education system, 38th for higher education and 33rd for Pre-K-12. 

Kentucky is ranked 14th for quality of education in public schools among all 50 states by WalletHub.

Kentucky schools spend $11,110 per pupil for a total of $7.6 billion annually. That’s the equivalent of 4.1% of taxpayer income.

49,070 college students graduate annually in Kentucky.

The cost of the average community college in Kentucky is $4,230 for In-state tuition and $14,240 for out-of-state tuition.

In Kentucky, public university costs $21,952 which is more than the national average of $21,216.

In-State Total$21,952
In-State Tuition & Fees$10,994
Room & Board$10,958
Out-Of-State Tuition & Fees$26,193

Top 10 Colleges in Kentucky

  • Berea College – Berea, KY
  • University of Louisville – Louisville, KY
  • Asbury University – Wilmore, KY
  • Simmons College of Kentucky – Louisville, KY
  • Centre College – Danville, KY
  • Northern Kentucky University – Highland Heights, KY
  • Alice Lloyd College – Pippa Passes, KY
  • University of Kentucky – Lexington, KY
  • Midway University – Midway, KY
  • Murray State University – Murray, KY

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Housing prices:

With a median home value of $135,300, Kentucky has the fifth cheapest home buying price in the country. A median home in Kentucky is 1,456 square feet, which is smaller than the four states on this list. A homeowner would be responsible for paying about $1,166 in property taxes every year based on Kentucky’s effective state property tax rate, which is 0.86%.

The median home value and median condo value in Kentucky differ the least from those in any other state. The median home value in Kentucky is just under $151,000, making it one of the most affordable states for home buyers.

Louisville homes are significantly cheaper than the national average even in the metro area. Furthermore, Kentucky has one of the lower property tax rates in the country. The record-low mortgage rates in Kentucky won’t last forever, though the market might remain affordable for a while.

In the Louisville/Jefferson County metro area, the median home value is $182,754. An ornate mansion on a five-acre lot in the Orange County area is one of the most expensive properties on the market at the moment for just $3.3 million. During June 2020, there were 1,804 sales and a median sale price of $212,000. This was a record-breaking month for the Greater Louisville Association of Realtors®.

According to here are the Affordable places to live in Kentucky

  • Princeton
  • Central City
  • Hebron
  • Flatwoods
  • Hillview
  • Elsmere
  • Burlington
  • Independence
  • Alexandria
  • Oakbrook

most expensive places to live in Kentucky for 2021:

  • Pikeville
  • Murray
  • Morehead
  • Versailles
  • Richmond
  • Bowling Green
  • Elizabethtown
  • St. Matthews
  • Newport
  • Lyndon


In Kentucky you will experience a humid subtropical climate, and in the highlands of the southeast, there is an oceanic climate. The Southern regions experience hot summers and cold winters and progressively warmer temperatures over the years.

A great climate can be found in Kentucky during four different seasons. In the summer months, it’s hot, wet, and humid.. Spring weather is usually mild, though it can be unpredictable at times. In autumn, the weather is usually sunny, pleasant, with low humidity and temperatures.

Kentucky has an average annual rainfall of 13 feet (304.8mm), with the rainiest region being in the south-central region, which receives 12 feet of rain per year more than the rest of the state. Despite 40″ (1270mm) of rainfall being received in the southern region, 38″ (965.2mm) is received by the northern region. During the spring months, rainfall is the heaviest, and during the autumn seasons, the driest. Most of the snowfall falls in the north and east, where it is between 15″ and 20″ in depth. Winter usually lasts longer in the north than it does in the south, with winter only lasting a few weeks in the south. In the northern and eastern regions, on average, 2700 hours of sunshine are recorded per year, while 60 freezing days are recorded in the south.

Weather hazards

As the temperatures rise in the spring and summer, Kentucky is susceptible to tornadoes, thunderstorms, floods, and droughts. It is especially vulnerable to floods in the later spring season when heavy rainfall and thawing of snow occur. Storms total between forty and fifty five in number, while there are an average of ten tornadoes each year. Storms can cause devastation of life and property when winds exceed 100 miles an hour. Winter is characterized by ice storms while the spring and summer are characterized by thunder storms.

Pros and Cons of Living in Kentucky


  • Excellent Centralized Location

Kentucky is located close to America’s major cities like Nashville, St. Louis, Chicago, Cincinnati, etc. 

  • Plenty of outdoor activities

It is home to several exciting outdoor adventures such as off-roading, hiking, mountain biking, paddle-boarding, ziplining, camping, etc. 

  • Reasonable cost of living

Kentucky is one of the affordable states to reside in. Its overall cost of living is around 17% lower than the national average. 

  • Affordable Housing

According to BestPlaces, the median housing cost in Kentucky is about $146,400, way cheaper than the country’s average. You can also take advantage of the state’s lower median property tax rate of 0.72%.

  • You’ll get to enjoy five seasons every year

Kentucky is one of a few states in America that enjoys five seasons every year. The fifth is the Derby Season that revolves around the festivities of May. 

  • Mouth-watering Hot Browns

Hot Brown is the region’s culinary treasure. These open-faced sandwiches are prepared from bacon, turkey, and tomato slice. 

  • Tax code is beneficial 

Kentucky is counted amongst the top 10 states to live in the USA because of its tax brackets. The top individual state income tax rate is around 5% which is way lower than many other states in the west. 

  • Positive Job Growth

The job market in Kentucky has increased by 1.3% over the past year. It is expected to grow by 34.8% in the next ten years which is higher than the national average of 33.5%


  • Accent Barrier

People living in this state mainly boast a thick southern accent. It is challenging for a newcomer to understand the southern drawl in the local language and different vocabulary. 

  • Frightening Weather

Kentucky is prone to severe storms like tornadoes. While living here, you need to take such warnings seriously and should know how to deal with them. 

  • Pollution

High urban pollution is yet another major drawback of living here. The air is so polluted that you can smell the factories from another side of the city. 

  • Poor Education System

There is room for lots of improvement in the state’s education system. Kentucky ranks 43 out of 50 states in higher education and 32 in pre-K-12 education, according to the US News & World Report. 

  • Lower average salary

The median household income in Kentucky is nearly about $43,342 per year, way less than the US average.

Things to Do in Kentucky

  1. Louisville Slugger Museum & Factory
  2. Keeneland
  3. Kentucky Bourbon Trail
  4. Kentucky Derby Museum
  5. Churchill Downs
  6. Ark Encounter
  7. Lost River Cave
  8. Angel’s Envy Distillery
  9. The Big Four Bridge
  10. National Corvette Museum
  11. The National Quilt Museum
  12. Buffalo Trace Distillery
  13. Mammoth Cave
  14. Kentucky Horse Park
  15. Evan Williams Bourbon Experience
  16. Castle & Key Distillery
  17. Crystal Onyx Cave
  18. Newport Aquarium
  19. Conrad-Caldwell House Museum (Conrad’s Castle)
  20. Willett Distilling Company

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The information given above about the Kentucky state will be very useful when you are moving to Kentucky. The cheaper cost of living in the state makes it easier to live comfortably on a low budget too. Kentucky ranks fifth for lower cost of living when compared to the other states. Although there are very few bigger employers here, there is nice other common job availability. The state is showing slow economic growth, still, it has some better availability of the basic facilities. Lower housing rates here can make your relocation to Kentucky very easier within the affordable rates. Living in Kentucky will also provide you with many of the wonderful places nearby where you can spend nice moments. Get ready to live in Kentucky State where you can enjoy a better quality of life.

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