Is it cheaper to live in Lexington or Omaha?

Lexington, KY is cheaper. Its monthly baseline of $1,070 (1BR rent + utilities) runs about 5% below Omaha, NE's $1,130, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $35,000 a year in Lexington versus $39,000 in Omaha.

Which has lower taxes, Lexington or Omaha?

Lexington is taxed under Kentucky's rules (a top state income tax rate of 3.50% and a 6% state sales tax); Omaha under Nebraska's (a top state income tax rate of 4.55% and a 5.5% state sales tax).

Lexington vs Omaha Cost of Living 2026

Lexington

Kentucky

$1,070/mo est.

Omaha

Nebraska

$1,130/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 $1,130 in Omaha, NE. Overall, Lexington, KY is roughly 5% cheaper to live in day-to-day than Omaha, NE, driven mainly by rent.

Median household income is $67,631 in Lexington, KY and $72,708 in Omaha, NE — about 7% higher in Omaha, NE. Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax; Nebraska has a top state income tax rate of 4.55% and a 5.5% state sales tax.

Lexington, KY

Omaha, NE

Rent

Studio

$769

$908

+18% in Omaha, NE

1 Bedroom

$887

$984

+11% in Omaha, NE

2 Bedroom

$1,119

$1,193

+7% in Omaha, NE

3 Bedroom

$1,408

$1,437

+2% in Omaha, NE

Buying a Home

Median Home Value

$272,100

$230,100

+15% in Lexington, KY

Income

Median Household Income

$67,631

$72,708

+8% in Omaha, NE

Metro Median Wage (annual)

$48,620

$49,660

+2% in Omaha, NE

People & Lifestyle

Median Age

35.2 yr

35.3 yr

+0.1 yr in Omaha, NE

Homeownership

53.6%

57.7%

+4.1 pp in Omaha, NE

Bachelor's+ (25+)

47.3%

40.3%

+7.0 pp in Lexington, KY

Avg Commute

20.8 min

19.6 min

+1.2 min in Lexington, KY

Crime (per 100k/yr)

Violent Crime

269.1

359

+33% in Omaha, NE

Property Crime

2,304.4

3,153.5

+37% in Omaha, NE

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

51.1°F

+4.5°F in Lexington, KY

Annual Precipitation

45.2 in

30.6 in

+14.6 in in Lexington, KY

Gas

Regular Gasoline

$3.94/gal

about equal

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

Public Transit

Base Fare (one-way)

—

$1.25

Adult base one-way fare — — vs Metro Transit (Omaha) (2026).

Utilities

Electricity (¢/kWh)

15.0

13.6

+9% in Lexington, KY

Natural Gas ($/MCF)

$29.48

$15.53

+47% in Lexington, KY

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

Groceries

Milk (gal)

$4.00

$4.31

+8% in Omaha, NE

Bread (lb)

$1.75

$1.66

+5% in Lexington, KY

Eggs (doz)

$2.21

$3.63

+64% in Omaha, NE

Ground Beef (lb)

$6.45

$6.77

+5% in Omaha, NE

Chicken (lb)

$1.90

$2.10

+10% in Omaha, NE

Bananas (lb)

$0.62

about equal

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

State Taxes

Sales Tax (KY / NE)

5.5%

+0.5 pp in KY

Income Tax (top rate)

3.50%

4.55%

+1.0 pp in NE

Lexington vs Omaha — FAQ

Is it cheaper to live in Lexington or Omaha?: Lexington, KY is cheaper. Its monthly baseline of $1,070 (1BR rent + utilities) runs about 5% below Omaha, NE's $1,130, mainly because of rent.
How much more do you need to earn to live in Lexington than in Omaha?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $35,000 a year in Lexington versus $39,000 in Omaha.
Which has lower taxes, Lexington or Omaha?: Lexington is taxed under Kentucky's rules (a top state income tax rate of 3.50% and a 6% state sales tax); Omaha under Nebraska's (a top state income tax rate of 4.55% and a 5.5% 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).