Median one-bedroom rent across the cities we track is $877 in Kentucky versus $889 in New Mexico. Overall, Kentucky runs roughly 1% cheaper on rent than New Mexico, its main day-to-day cost driver.
Median household income across tracked cities is $64,731 in Kentucky and $65,604 in New Mexico — about 1% higher in New Mexico. Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax; New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax.
State Taxes
Sales Tax
6%
4.875%
+1.1 pp in Kentucky
Income Tax (top rate)
3.50%
5.90%
+2.4 pp in New Mexico
Housing (median across tracked cities)
Median 1BR Rent
$877
$889
+1% in New Mexico
Median Home Value
$221,500
$266,700
+20% in New Mexico
Income (median across tracked cities)
Median Household Income
$64,731
$65,604
+1% in New Mexico
Climate (median across tracked cities)
Avg Annual Temperature
58.2°F
57.2°F
+1.0°F in Kentucky
Kentucky vs New Mexico — FAQ
- Is it cheaper to live in Kentucky or New Mexico?
- Kentucky is cheaper on rent — its median one-bedroom of $877 runs about 1% below New Mexico's $889, based on the cities we track in each state.
- How much more do you need to earn to live in Kentucky than in New Mexico?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $35,000 a year in Kentucky versus $36,000 in New Mexico.
- Which has lower taxes, Kentucky or New Mexico?
- Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax. New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax.
Housing, income, and climate are medians across the 1/1 cities we track in Kentucky/New Mexico — 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.