Cost of Living: Lexington, KY vs Birmingham, AL (2026)

Lexington

Kentucky
82
VS

Birmingham

Alabama
62

Lexington is 32% more expensive than Birmingham.

$1,101/mo ↑ 5%
Median Rent
$1,047/mo ↓ 5%
$67,631/yr ↑ 52%
Median Income
$44,376/yr ↓ 34%
$272,100 ↑ 96%
Home Value
$138,600 ↓ 49%
$1,160/mo ↑ 17%
Owner Costs
$991/mo ↓ 15%
321,122
Population
199,322

Tax Comparison

4.0%
Income Tax
5.0%
6.0%
State Sales Tax
4.0%
0.83%
Property Tax
0.41%

Affordability

19.5%
rent-to-income
Affordability
28.3%
rent-to-income

Detailed Comparison

When comparing Lexington, KY and Birmingham, AL, the overall cost of living indices are 82 and 62 respectively (national median = 100). Rent is $54/month cheaper in Birmingham, saving renters about $648/year.

Median household income is $23,255/year higher in Lexington. Home values also differ significantly — the median in Lexington is $272,100 compared to $138,600 in Birmingham.

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

Frequently Asked Questions

Lexington vs Birmingham — common questions

Is Lexington or Birmingham cheaper to live in?
Based on our cost index, Birmingham is cheaper to live in with an index of 62 compared to 82 (US average = 100).
What is the rent difference between Lexington and Birmingham?
Median rent in Lexington is $1,101/month and in Birmingham it's $1,047/month — a difference of $54/month.
Which city has higher income, Lexington or Birmingham?
Median household income is $67,631 in Lexington and $44,376 in Birmingham. Median household income is $23,255/year higher in Lexington.
How do taxes compare between Kentucky and Alabama?
Kentucky has 4.0% income tax, 6.0% sales tax, and 0.83% property tax. Alabama has 5.0% income tax, 4.0% sales tax, and 0.41% property tax.
Should I move to Lexington or Birmingham?
It depends on your priorities. Lexington has a cost index of 82 with median rent of $1,101/mo, while Birmingham has a cost index of 62 with rent of $1,047/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
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