Cost of Living: Lexington, KY vs Tempe, AZ (2026)

Lexington

Kentucky
82
VS

Tempe

Arizona
120

Lexington is 32% cheaper than Tempe.

$1,101/mo ↓ 32%
Median Rent
$1,623/mo ↑ 47%
$67,631/yr ↓ 13%
Median Income
$77,643/yr ↑ 15%
$272,100 ↓ 36%
Home Value
$421,900 ↑ 55%
$1,160/mo ↓ 25%
Owner Costs
$1,554/mo ↑ 34%
321,122
Population
186,419

Tax Comparison

4.0%
Income Tax
2.5%
6.0%
State Sales Tax
5.6%
0.83%
Property Tax
0.62%

Affordability

19.5%
rent-to-income
Affordability
25.1%
rent-to-income

Detailed Comparison

When comparing Lexington, KY and Tempe, AZ, the overall cost of living indices are 82 and 120 respectively (national median = 100). Rent is $522/month cheaper in Lexington, saving renters about $6,264/year.

Median household income is $10,012/year higher in Tempe. Home values also differ significantly — the median in Lexington is $272,100 compared to $421,900 in Tempe.

Arizona has a lower income tax rate, making Tempe slightly more tax-friendly.

Frequently Asked Questions

Lexington vs Tempe — common questions

Is Lexington or Tempe cheaper to live in?
Based on our cost index, Lexington is cheaper to live in with an index of 82 compared to 120 (US average = 100).
What is the rent difference between Lexington and Tempe?
Median rent in Lexington is $1,101/month and in Tempe it's $1,623/month — a difference of $522/month.
Which city has higher income, Lexington or Tempe?
Median household income is $67,631 in Lexington and $77,643 in Tempe. Median household income is $10,012/year higher in Tempe.
How do taxes compare between Kentucky and Arizona?
Kentucky has 4.0% income tax, 6.0% sales tax, and 0.83% property tax. Arizona has 2.5% income tax, 5.6% sales tax, and 0.62% property tax.
Should I move to Lexington or Tempe?
It depends on your priorities. Lexington has a cost index of 82 with median rent of $1,101/mo, while Tempe has a cost index of 120 with rent of $1,623/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Lexington details → View Tempe details →

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