A+
2%
Overall NAT. AVG.
2%
Goods & Services NAT. AVG.
10%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Florence Kentucky National
Cost of living9890100
Goods & Services102101100
Groceries102101100
Health care10384100
Housing9070100
Transportation10292100
Utilities100104100

An Overview of Cost of Living in Florence, KY

Getting a feel for the cost of living in Florence is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Florence is 98, which is 2% lower than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

In Florence, daily expenses such as food, housing, goods and services, transportation and health care are in line with comparable areas and about average when compared to all cities across the nation. This ensures that the cost of living in Florence will resemble that of an average city, contributing to a manageable cost of living.

Is Florence Affordable?

Is Florence an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Florence is 16.1% lower than the national average, while the average monthly rent prices are 3.2% higher than average. The affordability of any location can also be influenced by median income levels. Florence has a median household income of $60,018, which is 8.5% higher than the national average.

What Factors can Influence the Cost of Living in Florence?

Transportation: In cities with limited or no public transportation, residents may find it necessary to own and maintain vehicles, thereby elevating the cost of living. Monthly expenditures include fuel, insurance, routine maintenance and potential lease or financing commitments. In Florence, the transportation index stands at 2.4% higher than the national average.

Taxes: Areas with higher taxes, including sales taxes and income taxes, can contribute to a higher cost of living. Paying more tax for everyday goods and services like clothing and food will result in higher costs, as will paying a higher rate of income tax. The general sales tax rate in Florence starts at 6% and the income tax rates start at 5%.

Utilities: Similar to the prices of any goods or services, utility expenses can fluctuate widely, contingent on variables such as climate, available energy sources, geographical location and state regulations. Costs associated with electricity, water, heating, and waste disposal can differ in magnitude, depending on the specific city or state. In Florence, the utilities index registers at 0% equal to the national average.

Where is the Data From?

The cost of living in Florence, presented above is derived from the C2ER cost of living index, offering a practical method for assessing living cost disparities in urban areas. Published quarterly, this index compiles data from more than 300 independent researchers, encompassing over 60 goods and services in 6 categories. The weightings assigned to cost variances are informed by government survey data tracking the expenditure patterns of professional and executive households. It should be noted that the C2ER index does not include data on sales or income tax rates, however, AreaVibes incorporates tax rates into the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Florence is 8% higher than the Kentucky average
  • The cost of living in Florence is 2% lower than the national average
  • Florence housing is 10% lower than the national average
  • Kentucky general sales tax is 18% higher than the national average
  • Kentucky state income tax is 73% higher than the national average

Most Affordable Places to Live in and Around Florence

See all the best places to live around Florence

Compare Florence, KY Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$73,005$6,084$1,703$2,190
      Renters$46,417$3,868$1,083$1,393
      A good indicator of the general affordability of housing in Florence, KY, is the percentage of monthly income that should be spent on housing expenses, otherwise known as the debt-to-income ratio (DTI). Generally speaking, no more than 28 percent of your total gross income should be spent on your housing expenses and not more than 36 percent of your gross income on total expenses, including debts. In Florence, the median monthly income is $73,005 for those who own their own homes. Under the standard rule, that income level would allow for $1,703 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $46,417, per the median income in the area. That would allow for renters to spend up to $1,083 on monthly rental expenses.

      Kentucky Sales Tax

      State General Sales Tax With Max Surtax
      Kentucky 6% 6%

      Kentucky Income Tax

      State Income Tax (Low) Income Tax (High)
      Kentucky 4.5% 4.5%

      Goods & Services

      Item Florence National avg. Difference
      Haircut $25.13$24.263.6%
      Beauty Salon $37.93$45.5616.7%
      Toothpaste $3.60$3.702.7%
      Shampoo $1.27$1.280.6%
      Movie $14.35$12.1318.3%
      Bowling $17.56$18.002.5%

      Groceries

      Item Florence National avg. Difference
      Ground Beef $5.91$5.841.2%
      Fried Chicken $1.72$1.579.1%
      Milk $4.80$4.672.7%
      Potatoes $5.05$4.932.3%
      Pizza $11.92$12.091.4%
      Beer $10.63$10.412.1%

      Health Care

      Item Florence National avg. Difference
      Optometrist $105.42$125.6816.1%
      Doctor $159.40$135.7817.4%
      Dentist $106.67$113.295.8%
      Ibuprofen $10.68$10.650.3%
      Lipitor $497.02$468.606.1%

      Housing

      Item Florence National avg. Difference
      Home Price $154,900.00$184,700.0016.1%
      Avg. Mortgage Payment $1,993.26$2,346.6915.1%
      Apartment Rent $979.00$949.003.2%

      Transportation

      Item Florence National avg. Difference
      Gasoline $3.27$3.465.6%
      Tire Balancing $73.09$59.9222.0%

      Utilities

      Item Florence National avg. Difference
      All Electricity $197.10$193.991.6%
      Phone $186.48$192.253.0%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Shawnee, OH1,0541021.7%
      Petersburg, KY3681021.7%
      Florence, IN461021.7%
      Elizabethtown, OH2848020.4%
      Hooven, OH3268119.1%
      Florence, KY32,721981.9%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Matthews, NC32,68211514.6%
      Orangeville, ON32,668n/a 
      Helena, MT32,6551043.8%
      Pekin, IL32,7968515.4%
      Uniondale, NY32,62114747.2%
      Florence, KY32,721981.9%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.