Median one-bedroom rent across the cities we track is $877 in Kentucky versus $1,142 in Tennessee. Overall, Kentucky runs roughly 23% cheaper on rent than Tennessee, its main day-to-day cost driver.
Median household income across tracked cities is $64,731 in Kentucky and $63,204 in Tennessee — about 2% higher in Kentucky. Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax; Tennessee has no state income tax and a 7% state sales tax.
State Taxes
Sales Tax
6%
7%
+1.0 pp in Tennessee
Income Tax (top rate)
3.50%
None
+3.5 pp in Kentucky
Housing (median across tracked cities)
Median 1BR Rent
$877
$1,142
+30% in Tennessee
Median Home Value
$221,500
$270,100
+22% in Tennessee
Income (median across tracked cities)
Median Household Income
$64,731
$63,204
+2% in Kentucky
Climate (median across tracked cities)
Avg Annual Temperature
58.2°F
61.3°F
+3.0°F in Tennessee
Kentucky vs Tennessee — FAQ
- Is it cheaper to live in Kentucky or Tennessee?
- Kentucky is cheaper on rent — its median one-bedroom of $877 runs about 23% below Tennessee's $1,142, based on the cities we track in each state.
- How much more do you need to earn to live in Kentucky than in Tennessee?
- 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 $46,000 in Tennessee.
- Which has lower taxes, Kentucky or Tennessee?
- Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax. Tennessee has no state income tax and a 7% state sales tax.
Housing, income, and climate are medians across the 1/2 cities we track in Kentucky/Tennessee — 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.