Is it cheaper to live in Jackson or Louisville?

Jackson, MS is cheaper. Its monthly baseline of $1,010 (1BR rent + utilities) runs about 5% below Louisville, KY's $1,060, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $33,000 a year in Jackson versus $35,000 in Louisville.

Which has lower taxes, Jackson or Louisville?

Jackson is taxed under Mississippi's rules (a top state income tax rate of 4.00% and a 7% state sales tax); Louisville under Kentucky's (a top state income tax rate of 3.50% and a 6% state sales tax).

Jackson vs Louisville Cost of Living 2026

Jackson

Mississippi

$1,010/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 $1,010 in Jackson, MS versus $1,060 in Louisville, KY. Overall, Jackson, MS is roughly 5% cheaper to live in day-to-day than Louisville, KY, driven mainly by rent.

Median household income is $43,238 in Jackson, MS and $64,731 in Louisville, KY — about 33% higher in Louisville, KY. Mississippi has a top state income tax rate of 4.00% and a 7% state sales tax; Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax.

Jackson, MS

Louisville, KY

Rent

Studio

$1,085

$786

+28% in Jackson, MS

1 Bedroom

$816

$877

+7% in Louisville, KY

2 Bedroom

$991

$1,096

+11% in Louisville, KY

3 Bedroom

$1,121

$1,299

+16% in Louisville, KY

Buying a Home

Median Home Value

$108,200

$221,500

+105% in Louisville, KY

Income

Median Household Income

$43,238

$64,731

+50% in Louisville, KY

Metro Median Wage (annual)

$42,850

$48,370

+13% in Louisville, KY

People & Lifestyle

Median Age

34.7 yr

37.7 yr

+3.0 yr in Louisville, KY

Homeownership

48.6%

60.6%

+12.0 pp in Louisville, KY

Bachelor's+ (25+)

28.6%

33.4%

+4.8 pp in Louisville, KY

Avg Commute

20.2 min

22.7 min

+2.5 min in Louisville, KY

Crime (per 100k/yr)

Violent Crime

—

763.4

Property Crime

—

3,536.6

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

Climate

Avg Annual Temperature

65.3°F

58.2°F

+7.1°F in Jackson, MS

Annual Precipitation

54.3 in

44.9 in

+9.4 in in Jackson, MS

Gas

Regular Gasoline

$3.62/gal

$3.94/gal

+9% in Louisville, KY

Area: Gulf Coast (PADD 3) vs Midwest (PADD 2).

Public Transit

Base Fare (one-way)

—

$1.75

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

Utilities

Electricity (¢/kWh)

16.2

15.0

+7% in Jackson, MS

Natural Gas ($/MCF)

$27.68

$29.48

+7% 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 (MS / KY)

+1.0 pp in MS

Income Tax (top rate)

4.00%

3.50%

+0.5 pp in MS

Jackson vs Louisville — FAQ

Is it cheaper to live in Jackson or Louisville?: Jackson, MS is cheaper. Its monthly baseline of $1,010 (1BR rent + utilities) runs about 5% below Louisville, KY's $1,060, mainly because of rent.
How much more do you need to earn to live in Jackson than in Louisville?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $33,000 a year in Jackson versus $35,000 in Louisville.
Which has lower taxes, Jackson or Louisville?: Jackson is taxed under Mississippi's rules (a top state income tax rate of 4.00% and a 7% 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).