Is it cheaper to live in Lexington or Madison?

Lexington, KY is cheaper. Its monthly baseline of $1,070 (1BR rent + utilities) runs about 24% below Madison, WI's $1,410, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $35,000 a year in Lexington versus $49,000 in Madison.

Which has lower taxes, Lexington or Madison?

Lexington is taxed under Kentucky's rules (a top state income tax rate of 3.50% and a 6% state sales tax); Madison under Wisconsin's (a top state income tax rate of 7.65% and a 5% state sales tax).

Lexington vs Madison Cost of Living 2026

Lexington

Kentucky

$1,070/mo est.

Madison

Wisconsin

$1,410/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,070 in Lexington, KY versus $1,410 in Madison, WI. Overall, Lexington, KY is roughly 24% cheaper to live in day-to-day than Madison, WI, driven mainly by rent.

Median household income is $67,631 in Lexington, KY and $76,983 in Madison, WI — about 12% higher in Madison, WI. Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax; Wisconsin has a top state income tax rate of 7.65% and a 5% state sales tax.

Lexington, KY

Madison, WI

Rent

Studio

$769

$1,018

+32% in Madison, WI

1 Bedroom

$887

$1,219

+37% in Madison, WI

2 Bedroom

$1,119

$1,432

+28% in Madison, WI

3 Bedroom

$1,408

$1,766

+25% in Madison, WI

Buying a Home

Median Home Value

$272,100

$346,900

+27% in Madison, WI

Income

Median Household Income

$67,631

$76,983

+14% in Madison, WI

Metro Median Wage (annual)

$48,620

$58,080

+19% in Madison, WI

People & Lifestyle

Median Age

35.2 yr

31.8 yr

+3.4 yr in Lexington, KY

Homeownership

53.6%

46.6%

+7.0 pp in Lexington, KY

Bachelor's+ (25+)

47.3%

59.2%

+11.9 pp in Madison, WI

Avg Commute

20.8 min

19.4 min

+1.4 min in Lexington, KY

Crime (per 100k/yr)

Violent Crime

269.1

259.5

+4% in Lexington, KY

Property Crime

2,304.4

1,884.5

+18% 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

55.6°F

46.5°F

+9.1°F in Lexington, KY

Annual Precipitation

45.2 in

34.5 in

+10.7 in in Lexington, KY

Gas

Regular Gasoline

$3.94/gal

about equal

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

Utilities

Electricity (¢/kWh)

15.0

19.7

+32% in Madison, WI

Natural Gas ($/MCF)

$29.48

$11.79

+60% in Lexington, KY

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

Groceries

Milk (gal)

$4.00

$4.31

+8% in Madison, WI

Bread (lb)

$1.75

$1.66

+5% in Lexington, KY

Eggs (doz)

$2.21

$3.63

+64% in Madison, WI

Ground Beef (lb)

$6.45

$6.77

+5% in Madison, WI

Chicken (lb)

$1.90

$2.10

+10% in Madison, WI

Bananas (lb)

$0.62

about equal

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

State Taxes

Sales Tax (KY / WI)

+1.0 pp in KY

Income Tax (top rate)

3.50%

7.65%

+4.2 pp in WI

Lexington vs Madison — FAQ

Is it cheaper to live in Lexington or Madison?: Lexington, KY is cheaper. Its monthly baseline of $1,070 (1BR rent + utilities) runs about 24% below Madison, WI's $1,410, mainly because of rent.
How much more do you need to earn to live in Lexington than in Madison?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $35,000 a year in Lexington versus $49,000 in Madison.
Which has lower taxes, Lexington or Madison?: Lexington is taxed under Kentucky's rules (a top state income tax rate of 3.50% and a 6% state sales tax); Madison under Wisconsin's (a top state income tax rate of 7.65% and a 5% 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).