Cost of Living: Indianapolis, IN vs Lexington, KY (2026)

Indianapolis

Indiana
74
VS

Lexington

Kentucky
82

Indianapolis is 10% cheaper than Lexington.

$1,112/mo ≈ Same
Median Rent
$1,101/mo ≈ Same
$62,995/yr ↓ 7%
Median Income
$67,631/yr ↑ 7%
$207,000 ↓ 24%
Home Value
$272,100 ↑ 31%
$1,124/mo ↓ 3%
Owner Costs
$1,160/mo ↑ 3%
882,043
Population
321,122

Tax Comparison

3.05%
Income Tax
4.0%
7.0%
State Sales Tax
6.0%
0.83%
Property Tax
0.83%

Affordability

21.2%
rent-to-income
Affordability
19.5%
rent-to-income

Detailed Comparison

When comparing Indianapolis, IN and Lexington, KY, the overall cost of living indices are 74 and 82 respectively (national median = 100). Rent is comparable in both cities, with less than $50/month separating them.

Median household income is $4,636/year higher in Lexington. Home values also differ significantly — the median in Indianapolis is $207,000 compared to $272,100 in Lexington.

Indiana has a lower income tax rate, making Indianapolis slightly more tax-friendly.

Frequently Asked Questions

Indianapolis vs Lexington — common questions

Is Indianapolis or Lexington cheaper to live in?
Based on our cost index, Indianapolis is cheaper to live in with an index of 74 compared to 82 (US average = 100).
What is the rent difference between Indianapolis and Lexington?
Median rent in Indianapolis is $1,112/month and in Lexington it's $1,101/month — a difference of $11/month.
Which city has higher income, Indianapolis or Lexington?
Median household income is $62,995 in Indianapolis and $67,631 in Lexington. Median household income is $4,636/year higher in Lexington.
How do taxes compare between Indiana and Kentucky?
Indiana has 3.05% income tax, 7.0% sales tax, and 0.83% property tax. Kentucky has 4.0% income tax, 6.0% sales tax, and 0.83% property tax.
Should I move to Indianapolis or Lexington?
It depends on your priorities. Indianapolis has a cost index of 74 with median rent of $1,112/mo, while Lexington has a cost index of 82 with rent of $1,101/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Indianapolis details → View Lexington details →

More Comparisons

Other cost of living comparisons for Indianapolis and Lexington

Indianapolis vs. Charlotte Indianapolis vs. San Francisco Indianapolis vs. Columbus Indianapolis vs. Seattle Indianapolis vs. Fort Worth Indianapolis vs. Denver Lexington vs. Henderson Lexington vs. Stockton Lexington vs. Anaheim Lexington vs. Corpus Christi Lexington vs. Honolulu Lexington vs. Riverside