Indiana vs Kentucky Cost of Living
Purchasing power
Your $75,000 is worth different amounts in each state
$82,690
in Indiana
$81,967
in Kentucky
Each cell = 1% of purchasing power. Green = value, red = gap.
Spending breakdown
Estimated annual spending on a $75,000 salary
What things actually cost
Real dollar costs side by side
Category breakdown
| Category | Indiana | Kentucky | Difference |
|---|---|---|---|
| Housing | 75.4 | 74.8 | +1% |
| Groceries | 99.2 | 99.8 | -1% |
| Utilities | 95.0 | 88.0 | +8% |
| Transportation | 101.0 | 96.0 | +5% |
| Healthcare | 96.3 | 93.5 | +3% |
| Dining & Misc | 95.8 | 101.9 | -6% |
| Overall | 90.7 | 91.5 | -1% |
Index values relative to national average (100). Positive difference = more expensive in Indiana.
What things actually cost
| Item | Indiana | Kentucky | Difference |
|---|---|---|---|
| Median home price | $230,000 | $195,000 | +$35,000 |
| Average 2BR rent | $1,056/mo | $1,047/mo | +$9 |
| Gas price | $3.49/gal | $3.16/gal | +$0.33 |
| Electric bill | $101/mo | $89/mo | +$12 |
| Infant childcare | $14,471/yr | $8,756/yr | +$5,715 |
Salary equivalent: Indiana → Kentucky
What a Indiana salary buys you in Kentucky, adjusted for cost of living.
| Salary in Indiana | Equivalent in Kentucky | Difference |
|---|---|---|
| $50,000 | $50,441 | $-441 |
| $75,000 | $75,662 | $-662 |
| $100,000 | $100,882 | $-882 |
| $150,000 | $151,323 | $-1,323 |
| $200,000 | $201,764 | $-1,764 |
Positive = your money goes further in Kentucky. Based on overall COL index ratio.
Based on MERIC/C2ER 2025 composite indices. Dollar amounts from AAA, EIA, Zillow, and Child Care Aware.
Overview
Indiana and Kentucky have nearly identical costs of living, with overall indices of 90.7 and 91.5 (national average = 100).
FAQ
Is it cheaper to live in Indiana or Kentucky?
Indiana and Kentucky have roughly the same cost of living, with less than 1% difference in the MERIC/C2ER composite index.
Is Indiana cheaper than Kentucky?
Indiana and Kentucky cost roughly the same to live in.
Is Kentucky more expensive than Indiana?
Indiana and Kentucky have nearly identical costs of living — the difference is less than 1%.
What salary in Kentucky equals $100,000 in Indiana?
To maintain the same purchasing power as a $100,000 salary in Indiana, you would need approximately $100,882 in Kentucky. This is based on the overall cost-of-living index (90.7 vs 91.5).
How do housing costs compare between Indiana and Kentucky?
Housing is significantly cheaper in Kentucky. Median home prices are $230,000 in Indiana vs $195,000 in Kentucky — a $35,000 difference. Average 2-bedroom rent is $1,056/mo vs $1,047/mo.
What costs more in Indiana vs Kentucky?
Utilities is 8% higher in Indiana (index 95 vs 88). Dining & Misc is 6% lower in Indiana (index 95.8 vs 101.9). Transportation is 5% higher in Indiana (index 101 vs 96).
Is gas cheaper in Indiana or Kentucky?
Gas averages $3.49/gallon in Indiana and $3.16/gallon in Kentucky — a $0.33 difference per gallon.
Indiana vs Kentucky cost of living — how do they compare?
Indiana has an overall cost-of-living index of 90.7 and Kentucky has 91.5 (national average = 100). They are nearly identical. Use the calculator above to see how this affects your specific salary.
How do taxes compare between Indiana and Kentucky?
Cost of living is only part of the picture — state income taxes also affect your take-home pay. Indiana has a flat state income tax of 2.95% for 2026, one of the lowest flat rates in the country. Kentucky has a flat income tax rate of 3.50% for 2026, reduced from 4.00% in 2025. Use the Indiana vs Kentucky paycheck comparison to see how a specific salary compares after federal and state taxes, FICA, and deductions.
Do I need to file state tax returns in Indiana and Kentucky?
Indiana requires residents to file a state income tax return annually, typically due April 15. Kentucky requires residents to file a state income tax return annually, typically due April 15. If you move between states mid-year, you typically file a part-year resident return in each state for the income earned while living there.
Where does this cost of living data come from?
Cost-of-living indices are from the MERIC/C2ER 2025 Annual Average. Dollar amounts use AAA gas prices (March 2025), EIA electricity rates (2024), Child Care Aware childcare costs (2024), Zillow home values (2024-2025), and BEA Regional Price Parities.
Related tools
- Indiana Cost of Living — Housing, groceries, gas, and more
- Kentucky Cost of Living — Housing, groceries, gas, and more
- Indiana vs Kentucky Paycheck Comparison — Compare take-home pay after taxes
- House Affordability in Indiana — How much house can you afford?
- House Affordability in Kentucky — How much house can you afford?
- Indiana Tax Brackets — See 2026 marginal rates
- Kentucky Tax Brackets — See 2026 marginal rates
- Indiana Mortgage Calculator — Estimate monthly payments with local rates
- Kentucky Mortgage Calculator — Estimate monthly payments with local rates
- Indiana Bonus Tax Calculator — See how bonuses are taxed differently
- Kentucky Bonus Tax Calculator — See how bonuses are taxed differently
- Gross-Up Calculator — Find the salary you need to hit a target take-home
- Salary to Hourly Converter — Convert annual salary to hourly rate
- Compare any two states
Based on MERIC/C2ER 2025 composite indices and publicly available price data. Cost of living varies significantly by metro area within a state. These are statewide averages.