Lexington vs Chicago: Cost of Living Comparison
How does the cost of living in Lexington, Kentucky compare to Chicago, Illinois? Below is a side-by-side breakdown of housing costs, income, wages, and taxes using official government data.
Summary: Lexington is the more affordable city overall. Housing costs are 19% lower in Lexington compared to Chicago, while rent is 19% lower. State income tax is 4% in KY vs 4.95% in IL.
| Metric | Lexington, KY | Chicago, IL | Diff |
|---|---|---|---|
| Housing | |||
| Median Home Value | $247,900 | $304,500 | -18.6% |
| Median Monthly Rent | $1,065 | $1,314 | -18.9% |
| Income | |||
| Median Household Income | $66,087 | $71,673 | -7.8% |
| Per Capita Income | $40,953 | $45,840 | -10.7% |
| Taxes | |||
| State Income Tax Rate | 4.0% | 5.0% | -19.2% |
| Combined Sales Tax | 6.0% | 8.8% | -32.0% |
| Demographics | |||
| Population | 321,276 | 2,721,914 | -88.2% |
Source: U.S. Census Bureau ACS 5-Year Estimates (2022), Freddie Mac Primary Mortgage Market Survey. State/local tax rates from Tax Foundation (2024).
Rent vs. Buy Calculator — Lexington
Default home price from Census ACS median. Mortgage rate: 6.38% (Freddie Mac PMMS, March 2026). Property tax est. 1.1%, insurance est. 0.35% of home value annually.
Rent vs. Buy Calculator — Chicago
Default home price from Census ACS median. Mortgage rate: 6.38% (Freddie Mac PMMS, March 2026). Property tax est. 1.1%, insurance est. 0.35% of home value annually.
Key Takeaways
- Housing: The median home in Lexington costs $247,900 compared to $304,500 in Chicago — a 19% discount.
- Rent: Median rent is $1,065/mo in Lexington vs $1,314/mo in Chicago.
- Income: Median household income is $66,087 in Lexington and $71,673 in Chicago.
- Taxes: State income tax is 4% in Kentucky vs 4.95% in Illinois.
Methodology
This comparison uses data from the U.S. Census Bureau American Community Survey 5-Year Estimates (2022) for median household income, median home value, median gross rent, per capita income, and population. State and local tax rates are sourced from the Tax Foundation. Mortgage rates are from the Freddie Mac Primary Mortgage Market Survey (updated weekly).