Cost of Living: Lexington, KY vs Ann Arbor, MI (2026)

Lexington

Kentucky
82
VS

Ann Arbor

Michigan
121

Lexington is 32% cheaper than Ann Arbor.

$1,101/mo ↓ 29%
Median Rent
$1,552/mo ↑ 41%
$67,631/yr ↓ 17%
Median Income
$81,089/yr ↑ 20%
$272,100 ↓ 37%
Home Value
$435,100 ↑ 60%
$1,160/mo ↓ 29%
Owner Costs
$1,638/mo ↑ 41%
321,122
Population
121,179

Tax Comparison

4.0%
Income Tax
4.25%
6.0%
State Sales Tax
6.0%
0.83%
Property Tax
1.38%

Affordability

19.5%
rent-to-income
Affordability
23.0%
rent-to-income

Detailed Comparison

When comparing Lexington, KY and Ann Arbor, MI, the overall cost of living indices are 82 and 121 respectively (national median = 100). Rent is $451/month cheaper in Lexington, saving renters about $5,412/year.

Median household income is $13,458/year higher in Ann Arbor. Home values also differ significantly — the median in Lexington is $272,100 compared to $435,100 in Ann Arbor.

Kentucky has a lower income tax rate, making Lexington slightly more tax-friendly.

Frequently Asked Questions

Lexington vs Ann Arbor — common questions

Is Lexington or Ann Arbor cheaper to live in?
Based on our cost index, Lexington is cheaper to live in with an index of 82 compared to 121 (US average = 100).
What is the rent difference between Lexington and Ann Arbor?
Median rent in Lexington is $1,101/month and in Ann Arbor it's $1,552/month — a difference of $451/month.
Which city has higher income, Lexington or Ann Arbor?
Median household income is $67,631 in Lexington and $81,089 in Ann Arbor. Median household income is $13,458/year higher in Ann Arbor.
How do taxes compare between Kentucky and Michigan?
Kentucky has 4.0% income tax, 6.0% sales tax, and 0.83% property tax. Michigan has 4.25% income tax, 6.0% sales tax, and 1.38% property tax.
Should I move to Lexington or Ann Arbor?
It depends on your priorities. Lexington has a cost index of 82 with median rent of $1,101/mo, while Ann Arbor has a cost index of 121 with rent of $1,552/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Lexington details → View Ann Arbor details →

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