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

Memphis

Tennessee
68
VS

Louisville

Kentucky
74

Memphis is 6% cheaper than Louisville.

$1,123/mo ↑ 5%
Median Rent
$1,069/mo ↓ 5%
$51,211/yr ↓ 21%
Median Income
$64,731/yr ↑ 26%
$157,100 ↓ 29%
Home Value
$221,500 ↑ 41%
$1,087/mo ↓ 3%
Owner Costs
$1,118/mo ↑ 3%
629,063
Population
627,210

Tax Comparison

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

Affordability

26.3%
rent-to-income
Affordability
19.8%
rent-to-income

Detailed Comparison

When comparing Memphis, TN and Louisville, KY, the overall cost of living indices are 68 and 74 respectively (national median = 100). Rent is $54/month cheaper in Louisville, saving renters about $648/year.

Median household income is $13,520/year higher in Louisville. Home values also differ significantly — the median in Memphis is $157,100 compared to $221,500 in Louisville.

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

Frequently Asked Questions

Memphis vs Louisville — common questions

Is Memphis or Louisville cheaper to live in?
Based on our cost index, Memphis is cheaper to live in with an index of 68 compared to 74 (US average = 100).
What is the rent difference between Memphis and Louisville?
Median rent in Memphis is $1,123/month and in Louisville it's $1,069/month — a difference of $54/month.
Which city has higher income, Memphis or Louisville?
Median household income is $51,211 in Memphis and $64,731 in Louisville. Median household income is $13,520/year higher in Louisville.
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 Louisville?
It depends on your priorities. Memphis has a cost index of 68 with median rent of $1,123/mo, while Louisville has a cost index of 74 with rent of $1,069/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Memphis details → View Louisville details →