Cost of Living: Memphis, TN vs Lexington, KY (2026)

Memphis

Tennessee
68
VS

Lexington

Kentucky
82

Memphis is 17% cheaper than Lexington.

$1,123/mo ↑ 2%
Median Rent
$1,101/mo ↓ 2%
$51,211/yr ↓ 24%
Median Income
$67,631/yr ↑ 32%
$157,100 ↓ 42%
Home Value
$272,100 ↑ 73%
$1,087/mo ↓ 6%
Owner Costs
$1,160/mo ↑ 7%
629,063
Population
321,122

Tax Comparison

0%
Income Tax
4.0%
7.0%
State Sales Tax
6.0%
0.64%
Property Tax
0.83%

Affordability

26.3%
rent-to-income
Affordability
19.5%
rent-to-income

Detailed Comparison

When comparing Memphis, TN and Lexington, KY, the overall cost of living indices are 68 and 82 respectively (national median = 100). Rent is comparable in both cities, with less than $50/month separating them.

Median household income is $16,420/year higher in Lexington. Home values also differ significantly — the median in Memphis is $157,100 compared to $272,100 in Lexington.

Tennessee has no state income tax, giving Memphis residents a significant tax advantage over Kentucky's 4.0% rate.

Frequently Asked Questions

Memphis vs Lexington — common questions

Is Memphis or Lexington cheaper to live in?
Based on our cost index, Memphis is cheaper to live in with an index of 68 compared to 82 (US average = 100).
What is the rent difference between Memphis and Lexington?
Median rent in Memphis is $1,123/month and in Lexington it's $1,101/month — a difference of $22/month.
Which city has higher income, Memphis or Lexington?
Median household income is $51,211 in Memphis and $67,631 in Lexington. Median household income is $16,420/year higher in Lexington.
How do taxes compare between Tennessee and Kentucky?
Tennessee has 0% income tax, 7.0% sales tax, and 0.64% property tax. Kentucky has 4.0% income tax, 6.0% sales tax, and 0.83% property tax.
Should I move to Memphis or Lexington?
It depends on your priorities. Memphis has a cost index of 68 with median rent of $1,123/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 Memphis details → View Lexington details →

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