Kentucky Salaries 2025
Bourbon heritage meets automotive and logistics growth
Median Household Income
Kentucky Salary Overview 2025
Kentucky offers classic Southern value: modest wages paired with rock-bottom costs create solid purchasing power. The state's median household income of $55,500 sits below the national average, but Kentucky's cost of living (87 index, 13% below average) combined with a flat 4% income tax means dollars stretch considerably further than in high-cost states.
Louisville and Lexington drive the economy as the state's primary urban centers. Louisville has emerged as a major logistics hub (UPS Worldport, Amazon), healthcare center, and bourbon tourism destination. Lexington adds the University of Kentucky, horse industry, and Toyota's largest North American plant in nearby Georgetown.
Kentucky's bourbon industry has experienced a renaissance, generating tourism, hospitality, and manufacturing jobs. The EV battery industry is expanding rapidly with Ford's BlueOval SK Battery Park and other investments. Combined with established automotive manufacturing and healthcare, Kentucky offers diverse opportunities at affordable costs. For comprehensive salary data, see salary trends 2025.
Kentucky Salary Snapshot
| Metric | Kentucky | National Average |
|---|---|---|
| Median Household Income | $55,500 | $74,580 |
| Mean Household Income | $73,000 | $97,300 |
| Per Capita Income | $30,800 | $37,638 |
| Minimum Wage (2025) | $7.25/hr (federal) | $7.25/hr (federal) |
| Cost of Living Index | 87 (13% below avg) | 100 |
| State Income Tax | 4% flat | Varies |
Salaries by Kentucky Region
Louisville Metro â State's Largest City
Median Household Income: $62,000
Louisville anchors Kentucky's economy with logistics, healthcare, bourbon, and manufacturing. UPS Worldportâthe world's largest automated package handling facilityâemploys 20,000+. Humana headquarters and major hospital systems (Norton, Baptist, UofL Health) drive healthcare employment. Software engineers earn $75,000-$120,000, logistics managers $60,000-$100,000, healthcare administrators $70,000-$130,000.
Downtown revitalization, bourbon tourism (Bourbon District, Urban Bourbon Trail), and improving urban amenities attract young professionals. Housing remains affordable ($260,000 median) for a metro of 1.3 million.
Lexington â Horse Country & Toyota
Median Household Income: $60,000
Lexington combines University of Kentucky academics, horse industry heritage, and major manufacturing. Toyota's Georgetown plant (largest Toyota facility in North America) employs 9,000+ with premium manufacturing wages. Engineers $75,000-$125,000, skilled trades $50,000-$80,000. UK provides education, healthcare, and research employment. The horse industry adds unique agricultural and tourism jobs.
Northern Kentucky (Covington, Florence)
Median Household Income: $65,000
Northern Kentucky functions as part of the Cincinnati metro, offering Kentucky's lower taxes with access to Ohio jobs. Amazon's CVG air hub, DHL Americas hub, and numerous distribution centers create logistics employment. Finance and professional services serve Cincinnati companies. Housing ($280,000 median) is lower than Cincinnati while accessing the same job market.
Bowling Green â Corvette City
Median Household Income: $50,000
GM's Corvette assembly plant anchors Bowling Green, joined by numerous automotive suppliers. Western Kentucky University adds education employment. Very affordable ($220,000 median home) with stable manufacturing base.
Eastern Kentucky (Coal Country)
Median Household Income: $35,000-$45,000
Appalachian Kentucky faces economic challenges as coal declines. Healthcare and education provide primary employment. Very low costs but limited opportunities. Economic development efforts focus on tourism, broadband, and diversification.
| Region | Median Income | Median Home | Key Industries |
|---|---|---|---|
| Louisville | $62,000 | $260,000 | Logistics, Healthcare, Bourbon |
| Lexington | $60,000 | $280,000 | Auto, Education, Horse Industry |
| Northern Kentucky | $65,000 | $280,000 | Logistics, Cincinnati Access |
| Bowling Green | $50,000 | $220,000 | Automotive, Education |
| Eastern Kentucky | $38,000 | $120,000 | Healthcare, Education |
Top Paying Industries in Kentucky
Logistics & Distribution
Kentucky's central location and UPS Worldport make it a logistics powerhouse. UPS employs 20,000+ at its Louisville hub. Amazon's CVG air hub (Northern Kentucky) and numerous distribution centers add thousands more. Logistics managers $60,000-$110,000, operations supervisors $50,000-$80,000, pilots $100,000-$250,000+ (UPS/cargo). Package handlers and warehouse workers $35,000-$55,000 with benefits.
Automotive Manufacturing
Toyota (Georgetown), Ford (Louisville), and GM (Bowling Green) anchor automotive employment. The EV battery boom adds Ford's BlueOval SK Battery Park ($5.8B investment, 5,000 jobs). Manufacturing engineers $70,000-$115,000, plant managers $100,000-$160,000, skilled trades $50,000-$85,000. Union representation varies by plant.
Healthcare
Humana's Louisville headquarters, Norton Healthcare, Baptist Health, and university hospitals provide substantial employment. Physicians $250,000-$400,000+, nurses $55,000-$78,000, healthcare IT $60,000-$110,000. Rural areas offer loan forgiveness and signing bonuses.
Bourbon & Distilling
Kentucky produces 95% of the world's bourbon. Major distilleries (Jim Beam, Maker's Mark, Wild Turkey, Woodford Reserve) and craft operations create unique careers. Master distillers $80,000-$150,000+, production roles $40,000-$70,000, tourism/hospitality $30,000-$60,000. Industry growth continues with new distillery investments.
| Industry | Entry Level | Mid-Career | Senior Level |
|---|---|---|---|
| Automotive Engineering | $65,000 | $90,000 | $125,000+ |
| Logistics Management | $50,000 | $75,000 | $110,000+ |
| Healthcare (Physicians) | $250,000 | $320,000 | $400,000+ |
| Nursing (RN) | $52,000 | $65,000 | $78,000+ |
| Software Engineering | $60,000 | $85,000 | $115,000+ |
Kentucky Tax Analysis
Flat 4% Income Tax
Kentucky's flat 4% rate is straightforward and competitive:
| Salary | KY Tax (4%) | OH Tax (~3.5%) | TN Tax |
|---|---|---|---|
| $50,000 | $2,000 | $1,750 | $0 |
| $75,000 | $3,000 | $2,625 | $0 |
| $100,000 | $4,000 | $3,500 | $0 |
Kentucky taxes are slightly higher than Ohio and Tennessee (no income tax), but significantly lower than many states. Combined with low cost of living, total burden is very manageable.
Property Tax: Kentucky property taxes average 0.83%âbelow national average.
Sales Tax: 6% statewide, uniform with no local additions.
Kentucky Cost of Living Analysis
| Expense | Kentucky | National Avg |
|---|---|---|
| Housing Index | 70 | 100 |
| Median Home Price | $200,000 | $420,000 |
| Median Rent (2BR) | $950 | $1,400 |
| Groceries Index | 93 | 100 |
| Utilities Index | 94 | 100 |
| Healthcare Index | 90 | 100 |
Housing by Region
| Area | Median Home | Rent (2BR) |
|---|---|---|
| Louisville | $260,000 | $1,100 |
| Lexington | $280,000 | $1,150 |
| Northern Kentucky | $280,000 | $1,200 |
| Bowling Green | $220,000 | $950 |
| Owensboro | $180,000 | $850 |
A $60,000 salary in Kentucky provides equivalent purchasing power to approximately $80,000 in Chicago or $100,000 in Los Angeles.
Highest Paying Jobs in Kentucky 2025
| Occupation | Average Salary | Top 10% Earn |
|---|---|---|
| Physicians/Surgeons | $270,000 | $400,000+ |
| Dentists | $165,000 | $250,000+ |
| Airline Pilots (UPS) | $200,000 | $350,000+ |
| IT Directors | $120,000 | $160,000+ |
| Engineering Managers | $115,000 | $155,000+ |
| Pharmacists | $115,000 | $140,000+ |
| Financial Managers | $105,000 | $150,000+ |
| Plant Managers | $110,000 | $160,000+ |
Frequently Asked Questions
Is Kentucky a good value for careers?
Excellent for cost-conscious professionals. Low taxes (4% flat), very low costs (87 index), and solid industrial wages create strong purchasing power. Louisville and Lexington offer genuine career opportunities while remaining affordable.
How strong is the automotive industry?
Very strong and growing. Toyota, Ford, and GM provide anchor employment. The EV battery boom (Ford BlueOval SK) adds thousands of new jobs. Kentucky has positioned itself well for the EV transition with battery manufacturing investments.
Is UPS a good employer in Louisville?
UPS is Louisville's largest employer with diverse roles. Pilots earn $200,000+, management $70,000-$150,000+, operations and package handling provide solid benefits and advancement opportunities. Hub operations run 24/7 with various shift options.
What's the bourbon industry like for jobs?
Growing and unique. Production roles range from entry-level ($35,000-$45,000) to master distillers ($100,000+). Tourism/hospitality supports thousands more. The industry offers distinctive career paths unavailable elsewhereâif you're interested in spirits production, Kentucky is the place.
Northern Kentucky vs. Louisville?
Northern Kentucky offers Cincinnati job market access with Kentucky's lower taxesâattractive for Ohio commuters. Louisville has more self-contained economy, bourbon culture, and larger local job market. Both are affordable; choice depends on whether you prefer Kentucky-focused or Cincinnati-connected lifestyle.