Kentucky vs Virginia: Tax & Cost Comparison

2026

Side-by-side Kentucky vs Virginia comparison: state income tax, sales tax, property tax, cost of living, and minimum wage for 2026. Appalachian Border pair — KY's 4% flat against VA's 5.75% top + no local income tax. Different Northern Virginia (high-cost) vs Eastern KY economic dynamics.

Written and reviewed by Konstantin Iakovlev · Methodology · Updated

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

Tax / Cost Factor Kentucky Virginia
State income tax (top rate) 4.00% (flat) 5.75% (progressive)
State sales tax 6.00% 4.30%
Avg. effective property tax 0.83% 0.82%
Minimum wage (2026) $7.25/hr $12.77/hr
State Disability Insurance (SDI) No No
Paid Family Leave No No
Median home price (Q4 2025) $215,000 $410,000
Foreclosure type judicial non-judicial
BEA Regional Price Parity (2024) 91.2 102
Median household income (2024) $60,680 $89,930
Median 2-bedroom rent (Q4 2025) $1,100/mo $1,810/mo

Worked example: $75,000 single filer, 2026

For a single filer earning $75,000 in 2026, the rough state-tax burden comparison:

  • Kentucky: estimated state income tax ≈ $2,100, plus federal income tax (≈ $7,300 at 22% marginal), FICA $5,738, sales tax 6.00% on consumption.
  • Virginia: estimated state income tax ≈ $3,019, plus federal $7,300, FICA $5,738, sales tax 4.30% on consumption.

Property tax depends entirely on home value. On a $400,000 home: Kentucky ≈ $$3,320/year; Virginia ≈ $$3,280/year.

Combined annual state burden (income + property on $400K + 6% of $50K consumption sales tax) — Kentucky: ~$8,420; Virginia: ~$8,449.

Why this comparison? Appalachian Border pair — KY's 4% flat against VA's 5.75% top + no local income tax. Different Northern Virginia (high-cost) vs Eastern KY economic dynamics.

Frequently asked questions

Which is cheaper to live in: Kentucky or Virginia?

By BEA Regional Price Parity (2024), Kentucky has a cost-of-living index of 91.2 and Virginia is 102 (US average = 100). Median household income: Kentucky $60,680, Virginia $89,930. Median 2-bedroom rent: Kentucky $1,100/mo, Virginia $1,810/mo. Kentucky is the lower-cost state by this measure.

Does Kentucky or Virginia have lower income tax in 2026?

Kentucky has a top income-tax rate of 4.00%; Virginia has 5.75%. Kentucky is lower at the top bracket.

What about property taxes in Kentucky vs Virginia?

Kentucky's average effective property tax rate is 0.83% (e.g., $3,320/year on a $400,000 home). Virginia's rate is 0.82% ($3,280/year on $400K). Virginia has the lower property tax burden.

Where is the minimum wage higher: Kentucky or Virginia?

Kentucky's 2026 minimum wage is $7.25/hour; Virginia's is $12.41/hour. Virginia is higher.