Lifestyle
With tax-free Social Security income and tax exemptions on pensions up to a limit, Kentucky is a great place to call home after retirement. You’ll also get a sales tax break on groceries, which will help you keep more of your earnings in the bank.
John Thomas Lang
Published February 15th, 2022
Updated December 8th, 2022
John Thomas Lang
•
Published February 15th, 2022
•
Updated December 8th, 2022
Table of Contents
Key Takeaways
Kentucky has a low cost of living and tax-friendliness for retirees, making it an affordable option for retirement.
The state is a blend of small and mid sized towns, with plenty of suburban and rural options if you prefer.
The best Kentucky cities have plenty of arts and culture, combined with shopping and dining options and accessibility to healthcare.
Retirement invites the exciting prospect of finding the perfect place to call home, one that aligns with your lifestyle preferences and fulfills your aspirations for this new chapter. Amidst the plethora of options available across the United States, Kentucky emerges as a hidden gem, offering retirees a distinctive blend of charm, culture, and natural splendor.
Nestled in the heart of the South, Kentucky beckons with its picturesque landscapes, rich history, and warm hospitality, making it an enticing destination for those seeking a peaceful yet vibrant retirement experience. From the rolling hills of the Bluegrass Region to the vibrant city life of Louisville and Lexington, Kentucky holds the promise of a fulfilling and rewarding retirement journey for those ready to embrace its abundant offerings.
Is Kentucky a good place to live for retirees?
For those who love to experience the best of all four seasons, this Southern state can be a great option for retirement. Whether you’re looking for small-town charm or big-city living, Kentucky might hold your retirement paradise.
Is Kentucky tax-friendly for seniors?
With tax-free Social Security income and tax exemptions on pensions up to a limit, Kentucky is very tax-friendly for retirees. You’ll also get a sales tax break on groceries, which will help you keep more of your earnings in the bank.
Do seniors in Kentucky pay property taxes over 65?
Seniors in Kentucky may be eligible for a homestead exemption of over $39,000 deducted from their home’s value. You can apply with the county property valuation administrator and provide proof of your age with a birth certificate, driver’s license, or passport.
What benefits do seniors get in Kentucky?
Kentucky offers the usual senior benefits such as Medicaid and Medicare, as well as services like meals delivered at home, personal care assistance, and minor home adaptation. Kentucky also offers free used medical equipment to qualifying seniors.
Where is the best place to retire in Kentucky?
Let’s take a look at the top 10 cities and towns in Kentucky for retirees.
Louisville
CITY POPULATION: 633,045
SHARE OF POPULATION 65+: 15.8%
COST OF LIVING FOR RETIREES: 3.2% below the national average
MEDIAN HOME VALUE: $229,601
MEDIAN RENT: $1,250/month
TAX RATING FOR RETIREES: Tax Friendly
The largest city in Kentucky, Louisville is often considered the top place to retire to in Kentucky, and definitely one of the best for those looking for city life. Despite being a large city, it’s still very affordable compared to other U.S. cities, with low cost of living and housing prices.
Louisville also offers easy access to both Indiana and Ohio. If you like having plenty of shopping and dining options, combined with arts and culture, Louisville could be the perfect choice for you.
Somerset
CITY POPULATION: 11,924
SHARE OF POPULATION 65+: 18.8%
COST OF LIVING FOR RETIREES: 4.2% below the national average
MEDIAN HOME VALUE: $171,217
MEDIAN RENT: $1,050/month
TAX RATING FOR RETIREES: Tax Friendly
Those looking at the best small towns in Kentucky to retire should consider Somerset, a lakeside town with plenty of festivals and events. The area is also home to Lake Cumberland Regional Hospital, one of the largest hospitals in the state. With affordable housing and a low cost of living, Somerset is a financially sound small town to retire to.
Mayfield
CITY POPULATION: 10,017
SHARE OF POPULATION 65+: 16.5%
COST OF LIVING FOR RETIREES: 14.1% below the national average
MEDIAN HOME VALUE: $131,381
MEDIAN RENT: $1,250/month
TAX RATING FOR RETIREES: Tax Friendly
The small-town feel and affordability make Mayfield one of the best small towns to retire in Kentucky. Located in the southwestern corner of the state, you’ll find historical monuments, parks, and plenty of beautiful farmland. Cost of living is far below the national average, and with beautiful, affordable houses, Mayfield is a great place to retire to if you’re on a budget.
Lexington
CITY POPULATION: 322,570
SHARE OF POPULATION 65+: 15.2%
COST OF LIVING FOR RETIREES: 3.4% below the national average
MEDIAN HOME VALUE: $287,076
MEDIAN RENT: $1,475/month
TAX RATING FOR RETIREES: Tax Friendly
Known as the “horse capital of the world,” Lexington is one of the best places to live in Kentucky for seniors who love all things equestrian. The many horse events each year attract visitors from all over, which means you’ll have access to a wide selection of restaurants and shops. While not as affordable as some small towns in Kentucky, the wide array of attractions in Lexington make it a very tempting spot to retire to.
Ashland
CITY POPULATION: 21,625 SHARE OF POPULATION 65+: 19.5% COST OF LIVING FOR RETIREES: 5.4% below the national average MEDIAN HOME VALUE: $100,888 MEDIAN RENT: $1,200/month TAX RATING FOR RETIREES: Tax Friendly
One of the best places to live in Kentucky for retirees who want waterfront living, Ashland is a midsized city with plenty to offer. The downtown area is dotted with art installations and unique restaurants and boutiques, and being situated right on the Ohio River gives you plenty of options for water sports and recreation. You might think that this comes with a price premium, but Ashland is still very affordable compared to national averages.
Frankfort
CITY POPULATION: 28,602
SHARE OF POPULATION 65+: 15.5%
COST OF LIVING FOR RETIREES: 9.7% below the national average
MEDIAN HOME VALUE: $209,726
MEDIAN RENT: $774/month
TAX RATING FOR RETIREES: Tax Friendly
For a more suburban retirement, Frankfort is one of the best towns to retire in Kentucky. Golfers will especially like the many golf courses that cover the area, and travelers will like the easy access to Cincinnati, Lexington, and Louisville. Plus, it all comes with a low cost of living and below average housing prices.
Paducah
CITY POPULATION: 27,137
SHARE OF POPULATION 65+: 18.1%
COST OF LIVING FOR RETIREES: 14.1% below the national average
MEDIAN HOME VALUE: $159,790
MEDIAN RENT: $1,200/month
TAX RATING FOR RETIREES: Tax Friendly
When you ask is Kentucky a good state to retire in, some locals will mention Paducah, a thriving suburb with a charming historical downtown area. Being in the suburbs means that you’ll have plenty of dining, shopping, and healthcare options, all at a much lower cost than living in a bigger city. Cost of living in Paducah is far below the national average, and housing costs are affordable.
Bowling Green
CITY POPULATION: 72,294
SHARE OF POPULATION 65+: 11.4%
COST OF LIVING FOR RETIREES: 6.4% below the national average
MEDIAN HOME VALUE: $159,790
MEDIAN RENT: $1,200/month
TAX RATING FOR RETIREES: Tax Friendly
We’ve named this charming college town one of the best places to retire in Kentucky since 2020 due to its many hiking trails and parks. If you like live music, there are also quite a few venues to choose from, as well as outdoor concerts during warmer months. Despite being a larger city, cost of living is still below the national average and housing costs are affordable for retirees.
Shelbyville
CITY POPULATION: 17,282
SHARE OF POPULATION 65+: 14.1%
COST OF LIVING FOR RETIREES: 9.9% below the national average
MEDIAN HOME VALUE: $270,927
MEDIAN RENT: $1,100
TAX RATING FOR RETIREES: Tax Friendly
Located just a half an hour from Louisville, Shelbyville gives you plenty of affordable housing options and things to do. The city is home to Claudia Sanders Dinner House, as well as several other charming local restaurants and shops. The proximity to Louisville means you can always access bigger-city options if you’re looking for them.
Fort Thomas
CITY POPULATION: 17,438
SHARE OF POPULATION 65+: 15.8%
COST OF LIVING FOR RETIREES: 6.6% below the national average
MEDIAN HOME VALUE: $315,881
MEDIAN RENT: $1,175/month
TAX RATING FOR RETIREES: Tax Friendly
Located just over the river from Cincinnati, Ohio, this town is one of the best places to retire in Kentucky for its outdoor areas and history. Coney Island has the world’s largest recirculating pool, along with amusement park rides and restaurants, and the town is also home to a couple of military museums. Housing costs are slightly more expensive than other Kentucky towns due to the proximity to the city, but overall cost of living is still below the national average.
Final Thoughts
Retiring in Kentucky is ideal for those who like to experience all four seasons. You’ll get a lower-than-average cost of living and plenty of sights to see. But a Kentucky retirement won’t necessarily be the best fit for everyone. Retirable can help you take a look at your savings and map out a plan for achieving your all retirement dreams.
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JT is currently VP, Marketing at Retirable. A proud Colorado Native now calling Chicago home, he has played a key role in scaling multiple $1B+ unicorn tech startups. In addition to his passion for improving financial wellness in his community, you can probably find JT digging through crates for vinyl records.
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Share this advice
JT is currently VP, Marketing at Retirable. A proud Colorado Native now calling Chicago home, he has played a key role in scaling multiple $1B+ unicorn tech startups. In addition to his passion for improving financial wellness in his community, you can probably find JT digging through crates for vinyl records.
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