Cost of Living: Louisville, KY vs Montgomery, AL (2026)

Louisville

Kentucky
74
VS

Montgomery

Alabama
64

Louisville is 16% more expensive than Montgomery.

$1,069/mo ≈ Same
Median Rent
$1,059/mo ≈ Same
$64,731/yr ↑ 16%
Median Income
$55,687/yr ↓ 14%
$221,500 ↑ 49%
Home Value
$148,500 ↓ 33%
$1,118/mo ↑ 9%
Owner Costs
$1,023/mo ↓ 8%
627,210
Population
198,440

Tax Comparison

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

Affordability

19.8%
rent-to-income
Affordability
22.8%
rent-to-income

Detailed Comparison

When comparing Louisville, KY and Montgomery, AL, the overall cost of living indices are 74 and 64 respectively (national median = 100). Rent is comparable in both cities, with less than $50/month separating them.

Median household income is $9,044/year higher in Louisville. Home values also differ significantly — the median in Louisville is $221,500 compared to $148,500 in Montgomery.

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

Frequently Asked Questions

Louisville vs Montgomery — common questions

Is Louisville or Montgomery cheaper to live in?
Based on our cost index, Montgomery is cheaper to live in with an index of 64 compared to 74 (US average = 100).
What is the rent difference between Louisville and Montgomery?
Median rent in Louisville is $1,069/month and in Montgomery it's $1,059/month — a difference of $10/month.
Which city has higher income, Louisville or Montgomery?
Median household income is $64,731 in Louisville and $55,687 in Montgomery. Median household income is $9,044/year higher in Louisville.
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 Louisville or Montgomery?
It depends on your priorities. Louisville has a cost index of 74 with median rent of $1,069/mo, while Montgomery has a cost index of 64 with rent of $1,059/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Louisville details → View Montgomery details →

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