Is Lexington, KY cheaper than Memphis, TN?

Based on cost of living data, Lexington, KY is 8.1% more expensive than Memphis, TN. This translates to spending an extra $610 per month.

What salary do I need in Lexington, KY to live like I do in Memphis, TN?

If you earn $150,000 in Memphis, TN, you'd need approximately $157,325.581 in Lexington, KY to maintain the same standard of living.

How does housing cost compare between Memphis, TN and Lexington, KY?

Housing in Lexington, KY is 26.8% more expensive than in Memphis, TN. For a two-bedroom apartment, rent is $1,390/month in Lexington, KY compared to $1,245/month in Memphis, TN.

How much can I save per month by moving from Memphis, TN to Lexington, KY?

Living in Lexington, KY costs approximately $610 more per month than Memphis, TN, or $7326 more per year, based on a $150,000 salary.

Memphis, TN vs Lexington, KY: Cost of Living Comparison 2026

Tap to swap

Cost of Living Comparison 2026

Data: HUD rent estimates, BLS cost of living

Current salary in Memphis, TN

Numbers update automatically as you type

You'd spend $610/month more in Lexington, KY

$150.0K in your current city equals $157.3K in Lexington, KY

Rent data from HUD ZIP-level estimates · COL index from Memphis, TN-MS-AR area

Overall Cost

↑ 8.1%

More expensive

Monthly Impact

$610

Extra cost

Annual Impact

$7.3K

Per year

Based on monthly living costs (rent, groceries, utilities, transport, healthcare). Home purchase prices shown separately below.

Memphis, TN

Population:633K

Cost Index:

100

100 = national average

Median Home:$129K

Lexington, KY

Population:323K

Cost Index:

108

(8% above avg)

Median Home:$345K

Memphis, TN

The Volunteer State

633K

Population

State Tax

No Income Tax

Located in Tennessee, this city has a population of 633K residents.

💡 Advantage: Tennessee has no state income tax!

Lexington, KY

The Bluegrass State

323K

Population

State Tax

Yes

Located in Kentucky, this city has a population of 323K residents.

Cost Breakdown by Category

Annual spending: Memphis, TN vs Lexington, KY

Category	Memphis, TN	Lexington, KY	Difference	Change
Housing	$1,845/mo	$2,339/mo	↑ $494more	26.8%
All Utilities	$530/mo	$464/mo	↓ $65.57less	12.4%
Other	$1,674/mo	$1,641/mo	↓ $33.48less	2.0%
Transportation	$1,243/mo	$1,216/mo	↓ $27.32less	2.2%
Healthcare	$527/mo	$551/mo	↑ $24.78more	4.7%
Groceries	$939/mo	$959/mo	↑ $19.99more	2.1%

Housing

↑ 26.8%

Memphis, TN

$1,845

Lexington, KY

$2,339

Difference

$494

All Utilities

↓ 12.4%

Memphis, TN

$530

Lexington, KY

$464

Difference

$65.57

less

Other

↓ 2.0%

Memphis, TN

$1,674

Lexington, KY

$1,641

Difference

$33.48

less

Transportation

↓ 2.2%

Memphis, TN

$1,243

Lexington, KY

$1,216

Difference

$27.32

less

Healthcare

↑ 4.7%

Memphis, TN

$527

Lexington, KY

$551

Difference

$24.78

Groceries

↑ 2.1%

Memphis, TN

$939

Lexington, KY

$959

Difference

$19.99

🏛️ Local Income Taxes

Lexington, KY: Lexington Occupational Tax$3,750/yr (2.5%)

Memphis, TN has no local income tax.

Local taxes are in addition to state income tax. Not all cities levy local income taxes.

🏠Rent Comparison

Studio

From$1,035

To$960

↓ $75.00

1 Bed

From$1,125

To$1,180

↑ $55.00

2 Bed

From$1,245

To$1,390

↑ $145

3 Bed

From$1,645

To$1,900

↑ $255

Memphis, TNZIP-level data

1BR range: $940–$1,730/mo

Lexington, KYZIP-level data

1BR range: $940–$1,500/mo

💡 Note: Rent prices are based on HUD Fair Market Rent data and represent median costs. Actual prices vary by neighborhood, amenities, and condition. Source: HUD Small Area Fair Market Rents FY2026.

$6,758

Monthly in Memphis, TN

$7,170

Monthly in Lexington, KY

$412

Difference

Home Values

Memphis

Lexington

$129K

Median Value

$345K

↓ -2.8%

YoY Change

↑ +5%

↑ +25.1%

5-Year Change

↑ +43.5%

$58K - $408K

Price Range

$214K - $711K

Homes in Lexington are 167% more expensive than Memphis

Calculate payment - Memphis Calculate payment - Lexington

Source: Zillow Home Value Index (ZHVI), January 2026

Tax Comparison

Annual tax burden comparison at $150.0K salary

Tax Savings

↓ $7.5K

More taxes

Monthly Difference

$625

Less take-home

Effective Rate Diff

5.0%

Rate difference

Memphis, TN

Federal Income Tax

Effective: 18.9%

$25.5K

Tennessee State Tax

No state income tax

FICA Taxes

Social Security + Medicare

$11.5K

Total Taxes

Effective: 24.7%

$37.0K

Take-Home Pay

$9,416/month

$113.0K

Lexington, KY

Federal Income Tax

Effective: 18.9%

$25.5K

Kentucky State Tax

Effective: 5.0%

$7.5K

FICA Taxes

Social Security + Medicare

$11.5K

Total Taxes

Effective: 29.7%

$44.5K

Take-Home Pay

$8,791/month

$105.5K

Additional Tax Information

Memphis, TN Tax Rates

Sales Tax:9.5%

Property Tax:0.7%

Lexington, KY Tax Rates

Sales Tax:6.0%

Property Tax:0.9%

💡 Note: Tax calculations are estimates based on 2024/2025 tax brackets for single filers with standard deduction. Actual taxes may vary based on filing status, deductions, credits, and local variations.

Environment

Memphis

Lexington

55 Moderate

Air Quality

41 Good

34.4%

Good Air Days

79.2%

99 High

Climate Risk

92 Moderate

🌊🌡🫨

Top Hazards

🌪💨

▲+2.8°F

2050 Outlook

▲+3.0°F

54 days

Heat Days >95°F

21 days

▲+2.8°F

2050 Outlook

▲+3.0°F

54 days

Heat Days >95°F

21 days

💰 See how taxes change too — compare take-home pay between Tennessee and Kentucky on TaxTakeHome.com

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You'd spend $610/month more in Lexington, KY

Memphis, TN

Lexington, KY

Memphis, TN

Lexington, KY

Cost Breakdown by Category

🏛️ Local Income Taxes

🏠Rent Comparison

📍 Rent by ZIP Code26 ZIPs

📍 Rent by ZIP Code14 ZIPs

Home Values

🏠 Home Values by ZIP23 ZIPs

🏠 Home Values by ZIP14 ZIPs

Tax Comparison

Memphis, TN

Lexington, KY

Additional Tax Information

Memphis, TN Tax Rates

Lexington, KY Tax Rates

Environment

Similar cost to Lexington, KY