Is it cheaper to live in Lexington or Paterson?

Lexington, KY is cheaper. Its monthly baseline of $1,080 (1BR rent + utilities) runs about 24% below Paterson, NJ's $1,430, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $35,000 a year in Lexington versus $47,000 in Paterson.

Which has lower taxes, Lexington or Paterson?

Lexington is taxed under Kentucky's rules (a top state income tax rate of 3.50% and a 6% state sales tax); Paterson under New Jersey's (a top state income tax rate of 10.75% and a 6.625% state sales tax).

Lexington vs Paterson Cost of Living 2026

Lexington

Kentucky

$1,080/mo est.

Paterson

New Jersey

$1,430/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,080 in Lexington, KY versus $1,430 in Paterson, NJ. Overall, Lexington, KY is roughly 24% cheaper to live in day-to-day than Paterson, NJ, driven mainly by rent.

Median household income is $67,631 in Lexington, KY and $53,766 in Paterson, NJ — about 21% higher in Lexington, KY. Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax; New Jersey has a top state income tax rate of 10.75% and a 6.625% state sales tax.

Lexington, KY

Paterson, NJ

Rent

Studio

$769

$786

+2% in Paterson, NJ

1 Bedroom

$887

$1,183

+33% in Paterson, NJ

2 Bedroom

$1,119

$1,468

+31% in Paterson, NJ

3 Bedroom

$1,408

$1,729

+23% in Paterson, NJ

Buying a Home

Median Home Value

$272,100

$335,400

+23% in Paterson, NJ

Income

Median Household Income

$67,631

$53,766

+21% in Lexington, KY

Metro Median Wage (annual)

$48,620

$61,430

+26% in Paterson, NJ

People & Lifestyle

Median Age

35.2 yr

33.3 yr

+1.9 yr in Lexington, KY

Homeownership

53.6%

26.2%

+27.4 pp in Lexington, KY

Bachelor's+ (25+)

47.3%

12.5%

+34.8 pp in Lexington, KY

Avg Commute

20.8 min

23.1 min

+2.3 min in Paterson, NJ

Crime (per 100k/yr)

Violent Crime

269.1

1,010.1

+275% in Paterson, NJ

Property Crime

2,304.4

2,391.4

+4% in Paterson, NJ

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

52.2°F

+3.4°F in Lexington, KY

Annual Precipitation

45.2 in

49.0 in

+3.9 in in Paterson, NJ

Gas

Regular Gasoline

$3.85/gal

$3.94/gal

+2% in Paterson, NJ

Area: Midwest (PADD 2) vs East Coast (PADD 1).

Utilities

Electricity (¢/kWh)

14.3

24.9

+75% in Paterson, NJ

Natural Gas ($/MCF)

$33.20

$17.68

+47% in Lexington, KY

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

Groceries

Milk (gal)

$4.00

$4.31

+8% in Paterson, NJ

Bread (lb)

$1.75

$1.92

+10% in Paterson, NJ

Eggs (doz)

$2.21

$2.19

+1% in Lexington, KY

Ground Beef (lb)

$6.45

$6.90

+7% in Paterson, NJ

Chicken (lb)

$1.90

$2.19

+15% in Paterson, NJ

Bananas (lb)

$0.62

$0.69

+12% in Paterson, NJ

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

State Taxes

Sales Tax (KY / NJ)

6.625%

+0.6 pp in NJ

Income Tax (top rate)

3.50%

10.75%

+7.3 pp in NJ

Lexington vs Paterson — FAQ

Is it cheaper to live in Lexington or Paterson?: Lexington, KY is cheaper. Its monthly baseline of $1,080 (1BR rent + utilities) runs about 24% below Paterson, NJ's $1,430, mainly because of rent.
How much more do you need to earn to live in Lexington than in Paterson?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $35,000 a year in Lexington versus $47,000 in Paterson.
Which has lower taxes, Lexington or Paterson?: Lexington is taxed under Kentucky's rules (a top state income tax rate of 3.50% and a 6% state sales tax); Paterson under New Jersey's (a top state income tax rate of 10.75% and a 6.625% 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).