Is it cheaper to live in Annapolis or Lexington?

Lexington, KY is cheaper. Its monthly baseline of $1,070 (1BR rent + utilities) runs about 41% below Annapolis, MD's $1,820, mainly because of rent.

How much more do you need to earn to live in Annapolis than in Lexington?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $64,000 a year in Annapolis versus $35,000 in Lexington.

Which has lower taxes, Annapolis or Lexington?

Annapolis is taxed under Maryland's rules (a top state income tax rate of 6.50% and a 6% state sales tax); Lexington under Kentucky's (a top state income tax rate of 3.50% and a 6% state sales tax).

Annapolis vs Lexington Cost of Living 2026

Annapolis

Maryland

$1,820/mo est.

Lexington

Kentucky

$1,070/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,820 in Annapolis, MD versus $1,070 in Lexington, KY. Overall, Lexington, KY is roughly 41% cheaper to live in day-to-day than Annapolis, MD, driven mainly by rent.

Median household income is $104,257 in Annapolis, MD and $67,631 in Lexington, KY — about 35% higher in Annapolis, MD. Maryland has a top state income tax rate of 6.50% and a 6% state sales tax; Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax.

Annapolis, MD

Lexington, KY

Rent

Studio

$1,239

$769

+38% in Annapolis, MD

1 Bedroom

$1,598

$887

+44% in Annapolis, MD

2 Bedroom

$1,864

$1,119

+40% in Annapolis, MD

3 Bedroom

$2,232

$1,408

+37% in Annapolis, MD

Buying a Home

Median Home Value

$510,200

$272,100

+47% in Annapolis, MD

Income

Median Household Income

$104,257

$67,631

+35% in Annapolis, MD

Metro Median Wage (annual)

$59,070

$48,620

+18% in Annapolis, MD

People & Lifestyle

Median Age

40.9 yr

35.2 yr

+5.7 yr in Annapolis, MD

Homeownership

59.8%

53.6%

+6.2 pp in Annapolis, MD

Bachelor's+ (25+)

53.7%

47.3%

+6.4 pp in Annapolis, MD

Avg Commute

28.7 min

20.8 min

+7.9 min in Annapolis, MD

Crime (per 100k/yr)

Violent Crime

806

269.1

+67% in Annapolis, MD

Property Crime

2,111.5

2,304.4

+9% in Lexington, KY

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

57.1°F

55.6°F

+1.5°F in Annapolis, MD

Annual Precipitation

—

45.2 in

Gas

Regular Gasoline

$3.86/gal

$3.94/gal

+2% in Lexington, KY

Area: East Coast (PADD 1) vs Midwest (PADD 2).

Utilities

Electricity (¢/kWh)

21.8

15.0

+31% in Annapolis, MD

Natural Gas ($/MCF)

$18.94

$29.48

+56% in Lexington, KY

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.00

about equal

Bread (lb)

$1.75

about equal

Eggs (doz)

$2.21

about equal

Ground Beef (lb)

$6.45

about equal

Chicken (lb)

$1.90

about equal

Bananas (lb)

$0.62

about equal

Average prices — South vs South (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (MD / KY)

about equal

Income Tax (top rate)

6.50%

3.50%

+3.0 pp in MD

Annapolis vs Lexington — FAQ

Is it cheaper to live in Annapolis or Lexington?: Lexington, KY is cheaper. Its monthly baseline of $1,070 (1BR rent + utilities) runs about 41% below Annapolis, MD's $1,820, mainly because of rent.
How much more do you need to earn to live in Annapolis than in Lexington?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $64,000 a year in Annapolis versus $35,000 in Lexington.
Which has lower taxes, Annapolis or Lexington?: Annapolis is taxed under Maryland's rules (a top state income tax rate of 6.50% and a 6% state sales tax); Lexington under Kentucky's (a top state income tax rate of 3.50% and a 6% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).