What is the Cost of living in Tennessee vs Kentucky?  

Tennessee and Kentucky have some similarities including the rich landscapes, but Tennessee has a lot of benefits if you are considering relocating. In this post, you will find information about the cost of living in Tennesee vs Kentucky. While Kentucky has some benefits to living in the state, such as the cost of housing, Tennessee has lower tax costs among other things. Tennessee is one of the states that has the lowest cost of living. If you are considering a change to a similar scenery and lower cost of living, Tennessee might be the place for you!

Housing Market in Kentucky 

In general, houses cost a bit more in certain parts of Tennessee compared to Kentucky, but it is possible to find a home in the same range as the homes in Kentucky.

There are several reasons for that, so feel free to check out the best places to live in Tennessee if you want to compare the way of life between the two.

However, in terms of house costs, see below for a comparison of the state of Tennessee vs Kentucky. As well as a comparison of the capital cities of Nashville vs Frankfort. We are confident that seeing the analysis of these comparisons will help you understand the differences in housing costs. 

*All of the following housing cost numbers are as of 9-23-2022, according to Zillow:

Average Housing Cost in Tennessee

$277,805 (Cost of Home)

Tennessee Home

+25.7% (12-month change)

83.8% (cost compared to $331,533 national average)

0.84% (population growth)

ANALYSIS: On average, the price of a home in Tennessee is higher than it was a year ago. It is still cheaper than the average home in the United States. This would explain part of the allure of moving to Tennessee from many other locations. 

Average Housing Cost in Kentucky

$200,144 (Cost of Home)

+13.9% (12-month change)

60.3% (cost compared to $331,533 national average)

0.01% (population growth)

ANALYSIS: On average, the price of a home in Kentucky is also higher than it was a year ago. The average cost of a house in Kentucky, though, is less than the average cost of a home in Tennessee.

Housing Costs in Nashville TN

$420,533 (Cost of Home)

+28.3% (12-month change)

126.8% (compared to the $331,533 national average)

1.73% (population growth)

ANALYSIS: On average, the price of a home in Nashville is higher than it was a year ago and more expensive than the average home in the United States. It would be wise, however, to look outside of Nashville if you are looking to live in that area. 

Housing Costs in Frankfort KY

$211,090 (Cost of Home)

+16.8% (12-month change)

63.7% (compared to the $331,533 national average)

-0.2% (population growth)

ANALYSIS: On average, the price of a home in Frankfort is also higher than it was a year ago. The average cost of a home in Frankfort is much cheaper than that in Nashville, but if you look at houses in other parts of Tennessee, you will find that the average cost of homes is around the same as homes in Kentucky. 

Tax Rates in Kentucky 

Overall, out of all fifty United States, Kentucky is ranked 22nd out of 50 for the highest total tax burden, while Tennessee is 49th. Right off the bat, you can tell that there is a slight difference in the cost of living in Tennessee vs Kentucky simply based on taxes. 

Let’s break it down a little bit more…

Total Tax Burden

8.77% | Kentucky (22nd out of 50)

5.75% | Tennessee (2nd lowest out of 50… only Alaska is lower)

Income taxes

3.26% | Kentucky (10th highest out of 50)

0.06% | Tennessee (43rd highest out of 50)

Sales taxes

3.62% | Kentucky (20th highest out of 50)

3.98% | Tennessee (14th highest out of 50)

Property taxes

1.99% | Kentucky (44th highest out of 50)

1.71% | Tennessee (2nd lowest out of 50… only Alabama is lower)

ANALYSIS: There is quite a marginal difference in taxes between Tennessee and Kentucky. Kentucky may have cheaper housing costs, but tax rates are higher than in Tennessee in almost every category.

Average Monthly Utility Bills in Tennessee vs Kentucky

The truth is Tennessee and Kentucky rank similarly when it comes to utility bills. Depending on which utility bills you are comparing, Tennessee and Kentucky have bills that are within $10-20 of each other. 

Total Utilities

$339 | Kentucky (14th highest out of 50)

$305 | Tennessee (24th highest out of 50)

Water Bill

$49 | Kentucky

$43 | Tennessee 

Electricity Bill

$116 | Kentucky

$126 | Tennessee 

Distance from Tennessee to Kentucky

Considering the states border each other, Tennessee and Kentucky are rather close, but how close are they? The answer is…it varies.

If you were to drive between the capital cities of Nashville and Frankfort, you would travel roughly 209 miles or three and a half hours. 

While Tennessee and Kentucky are close together, the distance between the cities still changes depending on where you are in the states. For example, if you drove from Knoxville to Frankfort, you would only drive around 197 miles or roughly 3 hours. If you were to go from Nashville to Louisville, you would only travel around 176 miles, which would take about 3 hours. 

Because Tennessee and Kentucky are so close to each other, your travel mileage will vary by 100 miles wherever you go, but you will never travel more than 500 miles through these two states. 

Is There a Time Change Between Tennessee and Kentucky?

Tennessee and Kentucky have the same time zones, Central Standard Time (CST) and Eastern Standard Time (EST), but depending on the city you are in, you might be in a different time zone than you are used to. Middle and West Tennessee operate on CST, so Nashville is only one hour behind the Eastern half of Kentucky. The Western half of Kentucky operates on CST, though, so moving to Central or West Tennessee would keep you in the same time zone. East Tennessee, however, operates on EST, so you would stay in the same time zone as the Eastern half of Kentucky. 

Living in Tennessee vs Kentucky 

Pace of Life

Tennessee and Kentucky have similar populations of people depending on where you are in each state. Both states have large cities where you can find quite a mix of people, but they also have country parts where you are likely to find very similar types of people. Kentucky is farther North, but most parts of the state have a similar pace of life as Tennessee. 

Outdoor Activities 

Both Kentucky and Tennessee have many opportunities for outdoor activities. If you are looking for a place that has similar scenery, Tennessee might be the place for you! There are so many hiking opportunities that are similar to Kentucky. You are likely to find many beautiful waterfalls to hike to in either state, or you can also find some caves to safely explore. In the summertime, you are also sure to find a lake to go to for activities like swimming or kayaking. These states have very similar activities for all times of the year as well. 

Is your family ready for a move to Tennessee?