Is it cheaper to live in Annapolis or Louisville?

Louisville, KY is cheaper. Its monthly baseline of $1,060 (1BR rent + utilities) runs about 42% below Annapolis, MD's $1,820, mainly because of rent.

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

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 Louisville.

Which has lower taxes, Annapolis or Louisville?

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

Annapolis vs Louisville Cost of Living 2026

Annapolis

Maryland

$1,820/mo est.

Louisville

Kentucky

$1,060/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 $1,060 in Louisville, KY. Overall, Louisville, KY is roughly 42% cheaper to live in day-to-day than Annapolis, MD, driven mainly by rent.

Median household income is $104,257 in Annapolis, MD and $64,731 in Louisville, KY — about 38% 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

Louisville, KY

Rent

Studio

$1,239

$786

+37% in Annapolis, MD

1 Bedroom

$1,598

$877

+45% in Annapolis, MD

2 Bedroom

$1,864

$1,096

+41% in Annapolis, MD

3 Bedroom

$2,232

$1,299

+42% in Annapolis, MD

Buying a Home

Median Home Value

$510,200

$221,500

+57% in Annapolis, MD

Income

Median Household Income

$104,257

$64,731

+38% in Annapolis, MD

Metro Median Wage (annual)

$59,070

$48,370

+18% in Annapolis, MD

People & Lifestyle

Median Age

40.9 yr

37.7 yr

+3.2 yr in Annapolis, MD

Homeownership

59.8%

60.6%

+0.8 pp in Louisville, KY

Bachelor's+ (25+)

53.7%

33.4%

+20.3 pp in Annapolis, MD

Avg Commute

28.7 min

22.7 min

+6.0 min in Annapolis, MD

Crime (per 100k/yr)

Violent Crime

806

763.4

+5% in Annapolis, MD

Property Crime

2,111.5

3,536.6

+67% in Louisville, 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

58.2°F

+1.1°F in Louisville, KY

Annual Precipitation

—

44.9 in

Gas

Regular Gasoline

$3.86/gal

$3.94/gal

+2% in Louisville, KY

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

Public Transit

Base Fare (one-way)

—

$1.75

Adult base one-way fare — — vs TARC (2026).

Utilities

Electricity (¢/kWh)

21.8

15.0

+31% in Annapolis, MD

Natural Gas ($/MCF)

$18.94

$29.48

+56% in Louisville, 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 Louisville — FAQ

Is it cheaper to live in Annapolis or Louisville?: Louisville, KY is cheaper. Its monthly baseline of $1,060 (1BR rent + utilities) runs about 42% below Annapolis, MD's $1,820, mainly because of rent.
How much more do you need to earn to live in Annapolis than in Louisville?: 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 Louisville.
Which has lower taxes, Annapolis or Louisville?: Annapolis is taxed under Maryland's rules (a top state income tax rate of 6.50% and a 6% state sales tax); Louisville 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).