Kentucky and Tennessee at a glance
Moving between Kentucky and Tennessee changes more than the scenery. On a $60,000 salary, Kentucky leaves $29,937 a year after taxes, rent, food, energy and gasoline; Tennessee leaves $29,389.
Kentucky comes out ahead by $548 a year ($46 a month). The calculation starts from the same gross pay in both states, subtracts federal tax, Social Security and Medicare, then each state's own income tax, and then the population-weighted cost of a one-bedroom rental, groceries, home energy and gasoline across 4,534,824 people in 120 counties in Kentucky and 7,066,383 people in 95 counties in Tennessee.
Taxes: what each paycheck loses
Federal income tax ($5,072) and FICA ($4,590) on $60,000 are the same on both sides of the border. Tennessee does not tax wages, while Kentucky takes $2,269 of a $60,000 salary in state income tax, so take-home pay is $2,269 higher in Tennessee.
At $100,000
At $100,000 take-home pay is $75,032 in Kentucky and $78,901 in Tennessee, a difference of $3,869. The gap widens with income because graduated state brackets take a growing share.
Living costs
One-bedroom rent averages $946 a month in Kentucky and $1,196 in Tennessee, so Kentucky is $250 a month cheaper for housing. Food costs $3,436 a year in both, because the USDA Thrifty Food Plan is a national figure; home energy $1,874 and $1,733, and gasoline $1,470 and $1,426. Together the basics cost $18,132 a year in Kentucky and $20,949 in Tennessee.
What the Census adds
Median household income is $63,726 in Kentucky and $69,595 in Tennessee. Homeowners pay a median of $1,544 a year in property tax in Kentucky and $1,442 in Tennessee. Commuters travel 24.0 minutes each way on average in Kentucky and 25.7 in Tennessee.
Method
Taxes use the 2025 rules for a single filer with wage income only and the standard deduction. Housing and living costs are county figures from HUD (one-bedroom Fair Market Rent), the USDA Thrifty Food Plan and state energy prices from the Energy Information Administration, averaged across each state's counties and weighted by population, so large counties count more. Local income taxes are not included. Counties differ widely inside every state, so use the county pages for a specific place.