Is it cheaper to live in Denver or Lexington?

Lexington, KY is cheaper. Its monthly baseline of $1,070 (1BR rent + utilities) runs about 39% below Denver, CO's $1,750, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $63,000 a year in Denver versus $35,000 in Lexington.

Which has lower taxes, Denver or Lexington?

Denver is taxed under Colorado's rules (a top state income tax rate of 4.40% and a 2.9% state sales tax); Lexington under Kentucky's (a top state income tax rate of 3.50% and a 6% state sales tax).

Denver vs Lexington Cost of Living 2026

Denver

Colorado

$1,750/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 $1,750 in Denver, CO versus $1,070 in Lexington, KY. Overall, Lexington, KY is roughly 39% cheaper to live in day-to-day than Denver, CO, driven mainly by rent.

Median household income is $91,681 in Denver, CO and $67,631 in Lexington, KY — about 26% higher in Denver, CO. Colorado has a top state income tax rate of 4.40% and a 2.9% state sales tax; Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax.

Denver, CO

Lexington, KY

Rent

Studio

$1,497

$769

+49% in Denver, CO

1 Bedroom

$1,583

$887

+44% in Denver, CO

2 Bedroom

$1,958

$1,119

+43% in Denver, CO

3 Bedroom

$2,269

$1,408

+38% in Denver, CO

Buying a Home

Median Home Value

$586,700

$272,100

+54% in Denver, CO

Income

Median Household Income

$91,681

$67,631

+26% in Denver, CO

Metro Median Wage (annual)

$62,320

$48,620

+22% in Denver, CO

People & Lifestyle

Median Age

35.2 yr

about equal

Homeownership

49.1%

53.6%

+4.5 pp in Lexington, KY

Bachelor's+ (25+)

55.6%

47.3%

+8.3 pp in Denver, CO

Avg Commute

25.4 min

20.8 min

+4.6 min in Denver, CO

Crime (per 100k/yr)

Violent Crime

999.3

269.1

+73% in Denver, CO

Property Crime

4,781.1

2,304.4

+52% in Denver, CO

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

Climate

Avg Annual Temperature

50.2°F

55.6°F

+5.4°F in Lexington, KY

Annual Precipitation

15.6 in

45.2 in

+29.6 in in Lexington, KY

Gas

Regular Gasoline

$4.27/gal

$3.94/gal

+8% in Denver, CO

Area: Denver vs Midwest (PADD 2).

Public Transit

Base Fare (one-way)

$2.75

—

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

Utilities

Electricity (¢/kWh)

16.2

15.0

+7% in Denver, CO

Natural Gas ($/MCF)

$11.92

$29.48

+147% in Lexington, KY

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

Groceries

Milk (gal)

$4.82

$4.00

+17% in Denver, CO

Bread (lb)

$2.04

$1.75

+14% in Denver, CO

Eggs (doz)

$2.19

$2.21

+1% in Lexington, KY

Ground Beef (lb)

$7.36

$6.45

+12% in Denver, CO

Chicken (lb)

$2.01

$1.90

+6% in Denver, CO

Bananas (lb)

$0.70

$0.62

+12% in Denver, CO

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

State Taxes

Sales Tax (CO / KY)

2.9%

+3.1 pp in KY

Income Tax (top rate)

4.40%

3.50%

+0.9 pp in CO

Denver vs Lexington — FAQ

Is it cheaper to live in Denver or Lexington?: Lexington, KY is cheaper. Its monthly baseline of $1,070 (1BR rent + utilities) runs about 39% below Denver, CO's $1,750, mainly because of rent.
How much more do you need to earn to live in Denver than in Lexington?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $63,000 a year in Denver versus $35,000 in Lexington.
Which has lower taxes, Denver or Lexington?: Denver is taxed under Colorado's rules (a top state income tax rate of 4.40% and a 2.9% 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).