Living Cost Compare
Indianapolis

Indiana

$1,150/mo est.

vs
Lexington

Kentucky

$1,070/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,150 in Indianapolis, IN versus $1,070 in Lexington, KY. Overall, Lexington, KY is roughly 7% cheaper to live in day-to-day than Indianapolis, IN, driven mainly by rent.

Median household income is $62,995 in Indianapolis, IN and $67,631 in Lexington, KY — about 7% higher in Lexington, KY. Indiana has a top state income tax rate of 2.95% and a 7% state sales tax; Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax.

Indianapolis, IN
Lexington, KY

Rent

Studio
$933
$769
+18% in Indianapolis, IN
1 Bedroom
$963
$887
+8% in Indianapolis, IN
2 Bedroom
$1,132
$1,119
+1% in Indianapolis, IN
3 Bedroom
$1,304
$1,408
+8% in Lexington, KY

Buying a Home

Median Home Value
$207,000
$272,100
+31% in Lexington, KY

Income

Median Household Income
$62,995
$67,631
+7% in Lexington, KY
Metro Median Wage (annual)
$49,340
$48,620
+1% in Indianapolis, IN

People & Lifestyle

Median Age
34.1 yr
35.2 yr
+1.1 yr in Lexington, KY
Homeownership
55.3%
53.6%
+1.7 pp in Indianapolis, IN
Bachelor's+ (25+)
34.2%
47.3%
+13.1 pp in Lexington, KY
Avg Commute
24.3 min
20.8 min
+3.5 min in Indianapolis, IN

Crime (per 100k/yr)

Violent Crime
936.6
269.1
+71% in Indianapolis, IN
Property Crime
3,351.7
2,304.4
+31% in Indianapolis, IN

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

Climate

Avg Annual Temperature
53.2°F
55.6°F
+2.4°F in Lexington, KY
Annual Precipitation
42.4 in
45.2 in
+2.7 in in Lexington, KY

Gas

Regular Gasoline
$3.94/gal
$3.94/gal
about equal

Area: Midwest (PADD 2) vs Midwest (PADD 2).

Public Transit

Base Fare (one-way)
$1.75
—

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

Utilities

Electricity (¢/kWh)
18.1
15.0
+17% in Indianapolis, IN
Natural Gas ($/MCF)
$13.70
$29.48
+115% in Lexington, KY

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

Groceries

Milk (gal)
$4.31
$4.00
+7% in Indianapolis, IN
Bread (lb)
$1.66
$1.75
+5% in Lexington, KY
Eggs (doz)
$3.63
$2.21
+39% in Indianapolis, IN
Ground Beef (lb)
$6.77
$6.45
+5% in Indianapolis, IN
Chicken (lb)
$2.10
$1.90
+9% in Indianapolis, IN
Bananas (lb)
$0.62
$0.62
about equal

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

State Taxes

Sales Tax (IN / KY)
7%
6%
+1.0 pp in IN
Income Tax (top rate)
2.95%
3.50%
+0.5 pp in KY

Indianapolis vs Lexington — FAQ

Is it cheaper to live in Indianapolis or Lexington?
Lexington, KY is cheaper. Its monthly baseline of $1,070 (1BR rent + utilities) runs about 7% below Indianapolis, IN's $1,150, mainly because of rent.
How much more do you need to earn to live in Indianapolis than in Lexington?
To keep rent near the recommended 30% of gross income, you'd want to earn roughly $39,000 a year in Indianapolis versus $35,000 in Lexington.
Which has lower taxes, Indianapolis or Lexington?
Indianapolis is taxed under Indiana's rules (a top state income tax rate of 2.95% and a 7% 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).