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Kentuckyflat 4% income tax, 23rd lowest property tax, median home $215K

R+26  ·  Moderate tax burden  ·  COL index 85

B+

4%

Income Tax

228

Violent Crime / 100K

73.5

Life Expectancy

$215K

Median Home

$890

Childcare / Mo

Kentucky in plain English

Worth knowing before you move to Kentucky

Kentucky moved to a flat income tax of 4% and exempts the first $31,110 of pension and retirement income per person. It has an inheritance tax, but spouses, children, parents and siblings are exempt. Home prices are among the lowest in the country outside Louisville and Lexington, and the state has some of the cheapest electricity, much of it still coal-fired.

What Kentucky taxes, and what it doesn't

Kentucky levies a flat 4% income tax. A household earning $75,000 pays an effective 4.0%, about $3,000 a year; at $150,000 the effective rate is 4.0%. Among the 41 states that tax income, Kentucky has the 8th lowest effective rate at $100,000 of income.

Property tax runs 0.78% of home value a year, roughly $1,677 on the state's median home of $215K. The national effective rate is about 1.10%, and Kentucky has the 23rd lowest rate of the 50 states.

Combined state and local sales tax averages 6.00%, the 11th lowest in the country (the state portion is 6%).

For retirees: Social Security benefits are not taxed, pension income is partly exempt, and there is an inheritance tax on some heirs.

Capital gains are taxed as ordinary income.

Housing and the cost of living in Kentucky

Kentucky's cost of living index is 85, where 100 is the national average; that is the 3rd cheapest of the 50 states.

The median home costs $215K, 29% below the national figure and the 4th lowest among the states. A two-bedroom rents for about $1,050 a month.

Carrying costs matter as much as the price: home insurance averages $1,800 a year, flood coverage adds about $650 where it is needed, car insurance runs $2,040.

Budget $125 a month for electricity and gas, $400 a month in groceries for two, $890 a month for full-time infant care.

Safety, health and schools

Violent crime is 228 incidents per 100,000 residents in the FBI's 2023 Crime Data Explorer figures, below the median state (387); Kentucky is the 8th safest of the 50 by that measure. Property crime is 1,770 per 100,000.

Life expectancy is 73.5 years (County Health Rankings 2024). 6.8% of residents have no health insurance, and the state has expanded Medicaid. The Commonwealth Fund's 2023 scorecard ranks Kentucky's health system 24th of 50.

Education Week's 2023 Quality Counts report ranks K-12 schools 34th in the country, and the state runs a school-choice voucher program.

Politics, guns and social policy

Politically, Kentucky is a solidly Republican state that went to Trump by 26 points in 2024.

On guns, no permit is required to carry a concealed handgun, and Giffords grades the state's gun laws F.

Abortion is banned with narrow exceptions. Marijuana is medical only. Kentucky is a right-to-work state, and the minimum wage is $7.25 an hour.

Climate, risk and getting around

Natural disaster risk is moderate. The main hazards are tornado, flood, ice-storm. Annual average air quality index is 40 (under 50 is good).

Kentucky has no top-25 hub airport, with about 50 nonstop destinations from its busiest airport.

Written from the figures on this page. Rankings compare the 50 states. Sources and years are listed with each figure below.

State Profile

59/100
255075100TAXES66SAFETY82HEALTH53SCHOOLS33AFFORDABLE88LONGEVITY29

Kentucky will change its laws. We'll email you when it does.

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Taxes

Sources: state revenue departments · Tax Foundation 2026 · income-tax brackets 2026

Income Tax

4% flat

Property Tax

~$1,677/yr on median home

0.78% / yr

Sales Tax

6% avg

Social Security

Exempt

Pension / IRA

Partial

Estate Tax

Inheritance tax on non-spouse/child heirs

None

Inheritance Tax

⚠ Your heirs pay this tax on what you leave them — even if you have no estate tax. PA charges 4.5% to children from dollar one.

Yes

Capital Gains

Taxed as income

Housing & Cost of Living

Sources: Zillow · Census ACS · iii.org and state insurers 2026 · WRLURI 2018 · Census 2024 (HOA)

Price Level vs US (BEA)

Below US average (100)

90.2

Mortgages 90+ Days Late

FHFA, latest quarter

1.1%

Cost of Living Index

National avg = 100

85

Median Home Price

$215,000

Median Rent (2BR)

$1,050/mo

Home Insurance

Near national avg (~$1,900/yr)

$1,800/yr

Flood Insurance

$650/yr

Homestead Exemption

Home equity protected from creditors

$5,000

Asset Protection

Weak

Homes in HOAs

Moderate HOA presence (Census ACS 2024)

14.7%

Zoning Restrictiveness

Among the least restrictive zoning (Wharton WRLURI 2018)

Permissive

Short-Term Rentals (Airbnb)

State tax registration only; licensing varies by city.

Local Control

Crime & Safety

Sources: FBI Crime Data Explorer 2023 · SafeHome registry counts 2025 · HUD PIT 2024

Violent Crime Rate

Near national avg

228 / 100K

Property Crime Rate

Near national avg

1,770 / 100K

Traffic Fatality Rate

Among the most dangerous

18.7 / 100K

Registered Sex Offenders

Below the state median (SafeHome 2025)

218 / 100K

Homeless Population

Moderate homelessness rate — 33% unsheltered (HUD 2024 PIT)

114 / 100K

Healthcare

Sources: Commonwealth Fund 2023 · KFF · CDC

State Healthcare Rank

#24 of 50

Life Expectancy

73.5 yrs

Medicaid Expansion

Expanded

Uninsured Rate

6.8%

Education

Sources: Education Week 2023 · NCES · state statutes (school choice)

College Completion Rate

College Scorecard, in-state institutions (mean)

51%

Avg College Cost of Attendance

College Scorecard 2024

$29,772/yr

K-12 Quality Rank

#34 of 50

School Choice / Vouchers

Available

HS Graduation Rate

Above national avg (~87%)

91.9%

Pupil-Teacher Ratio

Near national avg (~16)

15.3 students/teacher

Childcare

Sources: Child Care Aware · Census ACS 2022

Avg Infant Care (Full-Time)

Below national avg

$890/mo

Utilities & Daily Costs

Sources: EIA (electricity, weekly gas) · USDA · eGRID 2022

Grid Carbon Intensity

Dirtier than US average (~820)

1720 lb CO₂/MWh

Avg Monthly Energy Bill

$125/mo

Electricity Rate

Below national avg (13¢)

10.9¢/kWh

Energy Mix

7% renewable · ☀ 0% solar · 💨 0% wind

Avg Monthly Groceries

2-person household, moderate spending

$400/mo

Road Quality Rank

#18 of 50

Airports & Travel

Sources: FAA · BTS

Nonstop Destinations

From state's primary airport

50+ routes

Major Hub Airport

Regional airport — connections via hub

No

Culture & Lifestyle

Sources: Census CBP · Brewers Association 2024 · Pollstar · AANR/TNS · AGA 2024

Urban Population

Mix of urban and rural

58% urban

Restaurant Density

Limited dining options

380/100K

Religious Congregations

245/100K

Pro Sports Teams

NFL + NBA + MLB + NHL + MLS

None

Major Venues

Stadiums, arenas, amphitheaters (10K+ capacity)

4 venues

Craft Breweries

2.4/100K residents — Growing

105 breweries

Craft Distilleries

One of the nation's top distillery states

115 distilleries

Live Music

Bourbon Trail is world-class (115+ distilleries); Louisville Bourbon & Beyond festival; Forecastle Fest

Strong

Transportation

Sources: NHTSA FARS · FCC · insurance rate surveys 2024 · IIHS helmet laws 2026

Car Insurance (Avg Annual)

$2,040

Traffic Fatality Rate

18.7 / 100K

Broadband Access

80% of households

Work From Home

State residents who primarily work from home (ACS)

158,544 workers

Social & Legal

Sources: Guttmacher · KFF · NCSL · state statutes 2026

Formal Volunteering Rate

AmeriCorps / Census CPS 2023 (US ~28%)

27.5%

Votes in Local Elections

AmeriCorps / Census CPS 2023

55.4%

Abortion Access

Near-total ban; trigger law took effect after Dobbs

Banned

LGBTQ+ Protections

Hostile

Marijuana

Medical Only

Minimum Wage

$7.25/hr

Right to Work

Yes

Sports Betting

Legal

Casino Gambling

No casinos

Online Gambling

Illegal

State Lottery

No casinos but famous for horse racing (Kentucky Derby). Sports betting launched 2023. Historical horse racing machines legal.

Yes

Age of Consent

16

Sex Education

Sex ed required by state

Abstinence-only

Nude Beaches & Naturist Clubs

Rock Haven Lodge (Brandenburg) · Kentucky naturists

Clubs only

Environment & Climate

Sources: EPA AQI · NOAA · FEMA National Risk Index

Air Quality (Annual AQI)

Near national avg

40

Natural Disaster Risk

Moderate

Primary Hazards

tornadofloodice-storm

Politics & Gun Laws

Sources: OpenElections 2024 · Giffords 2025 · state statutes

2024 Presidential Vote

R+26

Gun Laws

Gun ControlF
2A LibertyA+

Carry Permit

No permit required

Purchase Permit Required

No

Carry in Bars

Prohibited

Carry in Restaurants

Allowed

Carry in Places of Worship

Prohibited in portions primarily devoted to dispensing alcohol; majority-food restaurants exempt.

Allowed

Gambling

Legal

Hunting & Outdoors

Sources: state wildlife agencies · USFS · BLM · USFWS (May 2026)

Public Land8% of state
Resident Deer License$30
Deer Archery SeasonSep 7 – Jan 19
CrossbowFull season

Kentucky's archery season runs from Labor Day through January — one of the longest in the country. Strong trophy whitetail genetics in central Kentucky.

Kentucky Dept of Fish & Wildlife — Official Season Dates ↗

Finding nearby venues...

From r/hunting

My cousin wonders why I never let him hunt at my farm and ...

In their county they're allowed to only kill does on specified days that only happen once or twice a season. Where I'm at a deer bundle lice...

reddit.com ↗

Please Read! Speaking input/advice for a backcountry trip.

I'm making it a point to take a serious several day hunting trip for some kind of big game, Any suggestions, types of game to pursue, places...

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This is why I got into hunting... : r/Hunting

I took my first deer last weekend and this is the first meal from that animal. Such an awesome journey from the hunt, the processing, and .....

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Looking for a hunter to tag along. : r/Hunting

Im considering a hunt at premier whitetail ranch in Kentucky in 2027. The hunt is 3950 includes lodging food and a guide guide. I went on an...

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Jobs & Economy

Sources: BLS QCEW 2024 · BLS JOLTS 2024 · BLS union membership 2025 · Census ACS

Job Openings Rate (JOLTS)

Tight labor market (US ~4.5%)

5.7%

Quits Rate (JOLTS)

Workers quit when they can find better; BLS 2024 average

2.3%

Job Market

+1.2% job growth · 4% unemployment

Moderate

Top Industries

ManufacturingLogisticsHealthcare

Tech Jobs

#40 of 50

Healthcare Jobs

#30 of 50

Remote Work

13% of workers

Median Household Income

$60,111

Union Membership

Below-average union presence (BLS 2025)

8.9% of workers

Business Climate

Sources: Tax Foundation · state filings

Corporate Income Tax

5%

LLC Formation Fee

$40 one-time

LLC Annual Fee

$15/yr

Business Climate Rank

#20 of 50

Daily Life

Sources: American Pyrotechnics Association · state statutes 2026 · IIHS

Gas Price (Regular)

Well below avg (-0.28 vs national avg)

$3.02/gal

Consumer Fireworks

Consumer fireworks legal statewide

Legal

Motorcycle Helmet Law

Required under 21 (IIHS 2026)

Age-Limited

Weather & Natural Risks

Sources: NOAA · NWS Storm Prediction Center · FEMA NRI

Winter Severity

Avg January high: 42°F

Moderate

Summer Heat

Moderate summers

87°F avg July

Annual Rainfall

47" / yr

Tornado Risk

Moderate

Hurricane Risk

Very Low

Wildfire Risk

Low

Flood Risk

Moderate

Natural Hazards

Sources: USGS · CDC · USDA APHIS · NOAA · FEMA NRI 2023

39MODERATE danger
Brown recluse zoneCopperhead density HIGHNew Madrid seismic zone

Venomous Snakes

High

Spider Hazard

Brown Recluse Zone

Hurricane Risk

Minimal

Tornado Risk

Moderate

Wildfire Risk

Low

Earthquake Risk

Moderate

Armadillo Leprosy Risk

Moderate

Danger score is a composite index. Methodology ↗

Veteran Benefits

Sources: VA.gov · Military.com state guide · Tax Foundation

Veteran-Friendly Score

7.1% of state population are veterans

63/100

Property Tax Exemption

Up to $40,500 homestead exemption

Partial

Military Retirement Pay

Tax Exempt

Active Duty Pay

Taxed

VA Facilities Access

Good

Notable Benefits

Retired military pay exempt

Explore Kentucky counties

Income, housing, poverty, healthcare — ranked by county

Explore Counties

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Housing, taxes, childcare, insurance — all estimated.

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Trending in Kentucky

Governor Beshear on data centers in Kentucky - WBKO

WBKO · Sep 8

Former Kentucky Governor Is Arrested Amid Child Support Battle - The New York Times

The New York Times · Sep 5

Former Kentucky Governor Matt Bevin ordered to serve out 60-day sentence in jail - lex18.com

lex18.com · Sep 4

Former Kentucky governor sentenced to jail time - WKRN News 2

WKRN News 2 · Sep 7

What to know about KY ballot measure that would limit governor pardons - The Courier-Journal

The Courier-Journal · Sep 8

What Residents Say

From Lexington to Dayton? : r/dayton

Hello, I currently live in the Lexington, KY area. I have never lived in Dayton, but a lot of my family members live on the west side of Dayton & I visit ......

reddit.com ↗

DINKs looking to leave Kentucky : r/SameGrassButGreener

Criteria we are looking for: Medium or large city ~$700k budget for a house that can accommodate two cars in a nice/clean/safe area of town. ......

reddit.com ↗

How much do you need to live out of poverty in each state? ...

Kentucky at top of list for lowest cost of living. Good people, good weather, low taxes and a low cost of living. Plus there is a Dollar ......

reddit.com ↗

I WANT TO MOVE TO LOUISVILLE.

Cost of living, compared to Michigan, is much lower, but like some people have said, taxes are higher. it'll solidly be around 10-15 cents more ......

reddit.com ↗

What do you like most about living in Louisville?

Food is great, low cost of living, Cost of living isn't bad. Lots of stuff to do. A good mix of Southern culture and Midwest culture. There's ......

reddit.com ↗

Kentucky Republicans may be walking back plan to ...

no state income tax my net pay would be when moving to a state with income tax. No change in income. Kentucky is moving in the positive ......

reddit.com ↗

(21) Male. Rural Kentucky. Looking to move to the coast on a ...

Cost of living may not be terrible here but it's high for The South so your money could go farther somewhere else. I keep moving father away from "midtown ......

reddit.com ↗

32F, Relocating from Austin, TX - Advice? : r/Louisville

I didn't see anything in the rules against posts like this, but I am happy to remove if it's annoying. I have lived in Austin for the better part of ......

reddit.com ↗

Many Kentucky houseboat owners aren't paying their taxes. This ...

A rough count of all my property tax in a year is basically equal to 3 house payments....

reddit.com ↗

Where would you buy with 100k in cash? : r/homestead

Yes, taxes can be atrocious, but other costs of living can at least partially make up for it (insurance for example is downright reasonable ......

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Kentucky will change its laws. We'll email you when it does.

One email when Kentucky changes a tax, gun, cannabis or abortion law. Unsubscribe in one click.

Kentucky Guides

lifestyle

Kentucky's Bourbon Trail: How to Plan the Ultimate Distillery Trip

Kentucky's Bourbon Trail spans 95-plus distilleries across the state, and planning it wrong costs yo

Data is informational only. Verify with a tax professional, real estate agent, and local sources before making relocation decisions. Crime data: FBI Crime Data Explorer 2023. Healthcare: Commonwealth Fund 2023; life expectancy from County Health Rankings 2024. Education: Education Week 2023. Housing: Zillow monthly index and Census ACS 2022. Insurance: rate surveys 2024. Sponsored links marked “Sponsored” may earn a commission. This does not affect our data or rankings.

Your Priorities

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Quick Profiles

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Annual Income

$150K

Affects effective income tax rate

$0$500K$5M+

Retirement Savings

$0

Affects pension and SS tax burden

None$500K$10M+

Social Security

None

Annual Social Security benefit

None$150K/yr

My Property Is Worth

$400K

Affects property tax burden

Tax burden ↓$1M$50M+

Home Buying Budget

$400K

Compared to state median home price

Hard to find$250K$5M+

Monthly Rent Budget

Don't care

Compared to state median 2BR rent

Don't care$10K/mo

Job Market

Don't care

State unemployment and job growth

Don't careHot market

Airport Access

Don't care

Direct flight destinations from state hubs

Don't careMust have hub

City vs Country

Mid-size city

% urban population

Deep countryBig city

Sunshine

Don't care

Annual sunny days per state

Don't careMax sunshine

Food Scene

Don't care

Restaurants per 100K residents

Don't careWorld-class

Political Preference

Neutral

State's political lean

LiberalConservative

Gun Laws

Neutral

State gun law grade (Giffords)

Gun Control2A Freedom

Abortion Access

Neutral

State abortion access policy

Pro-ChoiceNeutralPro-Life

Community

None

Congregations per 100K residents

AvoidDon't careSeek

Sports & Entertainment

Don't care

Pro sports teams and major venues

Don't careMust have pro teams

Cannabis Laws

Neutral

State cannabis legality

Prefer LegalNeutralPrefer Prohibition

Retiree Community

Neutral

% population 65+ (Census)

Young areaRetirement-heavy

Dating Market

Neutral

% adults never-married (Census)

Singles sceneFamily community

Safety / Low Crime

Don't care

Violent crime rate per 100K (FBI)

Don't careVery safe

School Quality

Don't care

K-12 rank (Education Week)

Don't careTop-ranked

Healthcare Access

Don't care

Healthcare system rank (Commonwealth Fund)

Don't careTop-ranked

Childcare Affordability

Don't care

Cost of living proxy for childcare affordability

Don't careMust be affordable