Cost of Living: Lexington vs Tempe (2026)
Lexington has a 14% lower overall cost of living than Tempe as of Q1 2026. A one-bedroom apartment runs $1,350/mo in Lexington vs $1,600/mo in Tempe — a 16% difference. Tempe has a lower state income tax rate (2.5% vs 4%), which adds up over time.
- Lexington is 14% cheaper overall (COL index: 89 vs 103)
- 1BR rent: $1,350/mo in Lexington vs $1,600/mo — 16% savings
- Higher median household income: Tempe ($68,000/yr vs $56,000/yr)
- Median home price: $270,000 in Lexington vs $430,000 — 37% difference
| Category | Lexington Kentucky | Tempe Arizona |
|---|---|---|
| 🏠 HousingQ1 2026 | ||
| Studio rent/mo | $1,100Best | $1,250 |
| 1BR rent/mo | $1,350Best | $1,600 |
| 2BR rent/mo | $1,750Best | $2,100 |
| Median home price | $270KBest | $430K |
| 🛒 Food & GroceriesQ1 2026 | ||
| Groceries index (100 = US avg) | 96Best | 100 |
| Budget meal (1 person) | $12Best | $14 |
| Mid-range dinner (2) | $52Best | $58 |
| 🚌 TransportationQ1 2026 | ||
| Monthly transit pass/mo | $60 | $55Best |
| Gas price/gal | $3.05Best | $3.20 |
| Car insurance/mo | $145Best | $158 |
| ⚡ UtilitiesQ1 2026 | ||
| Monthly utilities bundle/mo | $158Best | $210 |
| Internet/mo | $60Best | $62 |
| 💰 Income & TaxesQ1 2026 | ||
| Median household income/yr | $56K | $68KBest |
| State income tax% | 4.0% | 2.5%Best |
| Sales tax (combined)% | 6.0%Best | 8.6% |
| 🎬 LeisureQ1 2026 | ||
| Movie ticket | $14.00Best | $15.00 |
| Gym membership/mo | $35Best | $40 |
| Beer at restaurant | $5.50Best | $6.50 |
| 📊 OverviewQ1 2026 | ||
| Overall COL index (100 = US avg) | 89Best | 103 |
| Walk score / 100 | 38 | 46Best |
Frequently asked questions
Is Lexington cheaper than Tempe?
Yes. Lexington is 14% cheaper than Tempe based on overall cost of living indices (89 vs 103, where 100 = US average).
What is the average rent in Lexington vs Tempe?
As of Q1 2026, the median 1-bedroom rent in Lexington is $1,350/month and in Tempe is $1,600/month. Lexington is cheaper by 16%.
How much do I need to earn in Tempe to match a $75,000 salary in Lexington?
To maintain a similar lifestyle, you would need approximately $86,798/year in Tempe to match a $75,000 salary in Lexington. This estimate is based on overall cost of living indices and does not account for individual spending patterns.
Which city has lower taxes — Lexington or Tempe?
Tempe has the lower state income tax rate at 2.5% vs 4%. The difference is 1.5 percentage points. Note that sales tax and local taxes also vary — see the full breakdown in the table above.
Is it worth moving from Lexington to Tempe?
It depends on your priorities. Lexington offers lower overall costs, but both cities have different job markets, weather, and lifestyle trade-offs. Use the comparison table above to evaluate rent, groceries, transportation, and income potential side by side based on your specific budget.
Data sourced from Zillow, BLS, Numbeo, Tax Foundation, and US Census ACS · Updated Q1 2026 · For general guidance only
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