Median one-bedroom rent across the cities we track is $1,004 in Alabama versus $877 in Kentucky. Overall, Kentucky runs roughly 13% cheaper on rent than Alabama, its main day-to-day cost driver.
Median household income across tracked cities is $44,376 in Alabama and $64,731 in Kentucky — about 31% higher in Kentucky. Alabama has a top state income tax rate of 5.00% and a 4% state sales tax; Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax.
State Taxes
Sales Tax
4%
6%
+2.0 pp in Kentucky
Income Tax (top rate)
5.00%
3.50%
+1.5 pp in Alabama
Housing (median across tracked cities)
Median 1BR Rent
$1,004
$877
+13% in Alabama
Median Home Value
$138,600
$232,100
+67% in Kentucky
Income (median across tracked cities)
Median Household Income
$44,376
$64,731
+46% in Kentucky
Climate (median across tracked cities)
Avg Annual Temperature
63.3°F
58.0°F
+5.3°F in Alabama
Alabama vs Kentucky — FAQ
- Is it cheaper to live in Alabama or Kentucky?
- Kentucky is cheaper on rent — its median one-bedroom of $877 runs about 13% below Alabama's $1,004, based on the cities we track in each state.
- How much more do you need to earn to live in Alabama than in Kentucky?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $40,000 a year in Alabama versus $35,000 in Kentucky.
- Which has lower taxes, Alabama or Kentucky?
- Alabama has a top state income tax rate of 5.00% and a 4% state sales tax. Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax.
Housing, income, and climate are medians across the 1/3 cities we track in Alabama/Kentucky — not population-weighted statewide figures. Taxes are exact state-level rates. Sources: US Census Bureau, ACS 5-Year; NOAA Climate Normals 1981–2010; Tax Foundation 2026.