Cost of Living in Lexington-Fayette, KY

How far does a $70,000 salary go in Lexington-Fayette? Estimated income taxes on that gross salary total approximately $9,915 per year — combining federal taxes with Kentucky's state income tax. Subtract rent for a 2-bedroom apartment ($1,272/month based on HUD Fair Market Rents for the Lexington-Fayette metro area) and the estimated annual take-home is $44,821, or roughly $3,735 per month for everything else: food, transportation, savings, and discretionary spending.

The Lexington-Fayette metro has a cost of living index of 74.4 according to the Bureau of Economic Analysis Regional Price Parities (national average = 100). At 26% below the national average, Lexington-Fayette is a genuinely affordable metro where everyday expenses stretch further than in most cities.

At a $70,000 salary, the estimated 2-bedroom rent in Lexington-Fayette represents approximately 22% of gross income. That falls comfortably below the 30% rent-burden guideline, a healthy position for building savings.