Is it cheaper to live in Lexington or Raleigh?

Lexington, KY is cheaper. Its monthly baseline of $1,070 (1BR rent + utilities) runs about 29% below Raleigh, NC's $1,510, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $35,000 a year in Lexington versus $53,000 in Raleigh.

Which has lower taxes, Lexington or Raleigh?

Lexington is taxed under Kentucky's rules (a top state income tax rate of 3.50% and a 6% state sales tax); Raleigh under North Carolina's (a top state income tax rate of 3.99% and a 4.75% state sales tax).

Lexington vs Raleigh Cost of Living 2026

Lexington

Kentucky

$1,070/mo est.

Raleigh

North Carolina

$1,510/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 $1,510 in Raleigh, NC. Overall, Lexington, KY is roughly 29% cheaper to live in day-to-day than Raleigh, NC, driven mainly by rent.

Median household income is $67,631 in Lexington, KY and $82,424 in Raleigh, NC — about 18% higher in Raleigh, NC. Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax; North Carolina has a top state income tax rate of 3.99% and a 4.75% state sales tax.

Lexington, KY

Raleigh, NC

Rent

Studio

$769

$1,301

+69% in Raleigh, NC

1 Bedroom

$887

$1,323

+49% in Raleigh, NC

2 Bedroom

$1,119

$1,462

+31% in Raleigh, NC

3 Bedroom

$1,408

$1,715

+22% in Raleigh, NC

Buying a Home

Median Home Value

$272,100

$377,800

+39% in Raleigh, NC

Income

Median Household Income

$67,631

$82,424

+22% in Raleigh, NC

Metro Median Wage (annual)

$48,620

$51,990

+7% in Raleigh, NC

People & Lifestyle

Median Age

35.2 yr

34.7 yr

+0.5 yr in Lexington, KY

Homeownership

53.6%

51.2%

+2.4 pp in Lexington, KY

Bachelor's+ (25+)

47.3%

52.9%

+5.6 pp in Raleigh, NC

Avg Commute

20.8 min

23.4 min

+2.6 min in Raleigh, NC

Crime (per 100k/yr)

Violent Crime

269.1

491.5

+83% in Raleigh, NC

Property Crime

2,304.4

2,838.4

+23% in Raleigh, NC

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

60.6°F

+5.0°F in Raleigh, NC

Annual Precipitation

45.2 in

46.0 in

+0.9 in in Raleigh, NC

Gas

Regular Gasoline

$3.94/gal

$3.86/gal

+2% in Lexington, KY

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

Public Transit

Base Fare (one-way)

—

$1.25

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

Utilities

Electricity (¢/kWh)

15.0

15.1

+1% in Raleigh, NC

Natural Gas ($/MCF)

$29.48

$27.56

+7% in Lexington, 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 (KY / NC)

4.75%

+1.3 pp in KY

Income Tax (top rate)

3.50%

3.99%

+0.5 pp in NC

Lexington vs Raleigh — FAQ

Is it cheaper to live in Lexington or Raleigh?: Lexington, KY is cheaper. Its monthly baseline of $1,070 (1BR rent + utilities) runs about 29% below Raleigh, NC's $1,510, mainly because of rent.
How much more do you need to earn to live in Lexington than in Raleigh?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $35,000 a year in Lexington versus $53,000 in Raleigh.
Which has lower taxes, Lexington or Raleigh?: Lexington is taxed under Kentucky's rules (a top state income tax rate of 3.50% and a 6% state sales tax); Raleigh under North Carolina's (a top state income tax rate of 3.99% and a 4.75% 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).