Kentucky · Population 627,210 · Updated March 2026
How far your income goes in Louisville
State-level tax rates that affect your costs
Louisville is significantly cheaper than the national average, making it an attractive option for budget-conscious individuals and families. With a cost index of 74 (where 100 equals the national median), Louisville residents can expect to pay median rent of $1,069/month while earning a median household income of $64,731/year.
The median home value in Louisville, KY is $221,500, with typical monthly owner costs around $1,118 including mortgage, insurance, and taxes. The median rent-to-income ratio of 19.8% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.
Kentucky has a moderate income tax rate of 4.0%. Combined with a 6.0% sales tax rate and 0.83% effective property tax rate, the overall tax environment is a factor in the total cost of living in Louisville.
Common questions about living costs in Louisville
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