Lifestyle

10 Best Cities to Retire in Kentucky in 2022

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.

Other than financial savings, is Kentucky a good place to retire? For those who love to experience the best of all four seasons, the Southern state can be a great option. Here are some of the best cities in the state for retirement.

Stephanie Faris

Stephanie Faris

Published February 15th, 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.

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.

Other than financial savings, is Kentucky a good place to retire? For those who love to experience the best of all four seasons, the Southern state can be a great option. Here are some of the best cities in the state for retirement.

Louisville

CITY POPULATION: 766,757

SHARE OF POPULATION 65+: 16.7%

COST OF LIVING FOR RETIREES: 8% below the national average

PER CAPITA INCOME FOR POPULATION: $33,251

TAX RATING FOR RETIREES: Tax Friendly

Named as one of the best places to retire in Kentucky 2019 through 2021 in many lists, Louisville is great for those looking for city life. 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: 11,585

SHARE OF POPULATION 65+: 19.1%

COST OF LIVING FOR RETIREES: 15% below the national average

PER CAPITA INCOME FOR POPULATION: $22,571

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.

Mayfield

CITY POPULATION: 16,263

SHARE OF POPULATION 65+: 16.1%

COST OF LIVING FOR RETIREES: 12% below the national average

PER CAPITA INCOME FOR POPULATION: $43,980

TAX RATING FOR RETIREES: Tax Friendly

The small-town feel and affordability make Mayfield one of the best cities to retire in Kentucky. Located in the southwestern corner of the state, you’ll find historical monuments, parks, and plenty of beautiful farmland.

Lexington

CITY POPULATION: 323,152

SHARE OF POPULATION 65+: 13%

COST OF LIVING FOR RETIREES: 4% below the national average

PER CAPITA INCOME FOR POPULATION: $34,442

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.

Ashland

CITY POPULATION: 20,146

SHARE OF POPULATION 65+: 18.3%

COST OF LIVING FOR RETIREES: 11% below the national average

PER CAPITA INCOME FOR POPULATION: $24,096

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.

Frankfort

CITY POPULATION: 27,755

SHARE OF POPULATION 65+: 16.1%

COST OF LIVING FOR RETIREES: 11% above the national average

PER CAPITA INCOME FOR POPULATION: $29,288

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.

Paducah

CITY POPULATION: 24,865

SHARE OF POPULATION 65+: 19.5%

COST OF LIVING FOR RETIREES: 8% below the national average

PER CAPITA INCOME FOR POPULATION: $32,097

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.

Bowling Green

CITY POPULATION: 70,543

SHARE OF POPULATION 65+: 11%

COST OF LIVING FOR RETIREES: 8% below the national average

PER CAPITA INCOME FOR POPULATION: $24,083

TAX RATING FOR RETIREES: Tax Friendly

This charming college town is one of the best places to retire in Kentucky 2020 and 2021 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.

Shelbyville

CITY POPULATION: 16,585

SHARE OF POPULATION 65+: 11.8%

COST OF LIVING FOR RETIREES: 5% below the national average

PER CAPITA INCOME FOR POPULATION: $29,825

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: 16,263

SHARE OF POPULATION 65+: 16.1%

COST OF LIVING FOR RETIREES: 12% below the national average

PER CAPITA INCOME FOR POPULATION: $43,980

TAX RATING FOR RETIREES: Tax Friendly

This Cincinnati, Ohio-area 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.

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.


Share this advice


Stephanie Faris

Stephanie Faris

Stephanie Faris has written about finance for entrepreneurs and marketing firms since 2013. She spent nearly a year as a writer for a credit card processing service and has written about finance for numerous marketing firms and entrepreneurs. Her work has appeared on Money Under 30, The Motley Fool, MoneyGeek, E-commerce Insiders, and GoBankingRates.

Best Places To Retire

Getting Started


Northeastern U.S. Best Places To Retire


Southern U.S. Best Places To Retire


Midwestern U.S. Best Places To Retire


Western U.S. Best Cities To Retire

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Lifestyle

10 Best Cities to Retire in Kentucky in 2022

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.

Other than financial savings, is Kentucky a good place to retire? For those who love to experience the best of all four seasons, the Southern state can be a great option. Here are some of the best cities in the state for retirement.

Stephanie Faris

Stephanie Faris

Published February 15th, 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.

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.

Other than financial savings, is Kentucky a good place to retire? For those who love to experience the best of all four seasons, the Southern state can be a great option. Here are some of the best cities in the state for retirement.

Louisville

CITY POPULATION: 766,757

SHARE OF POPULATION 65+: 16.7%

COST OF LIVING FOR RETIREES: 8% below the national average

PER CAPITA INCOME FOR POPULATION: $33,251

TAX RATING FOR RETIREES: Tax Friendly

Named as one of the best places to retire in Kentucky 2019 through 2021 in many lists, Louisville is great for those looking for city life. 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: 11,585

SHARE OF POPULATION 65+: 19.1%

COST OF LIVING FOR RETIREES: 15% below the national average

PER CAPITA INCOME FOR POPULATION: $22,571

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.

Mayfield

CITY POPULATION: 16,263

SHARE OF POPULATION 65+: 16.1%

COST OF LIVING FOR RETIREES: 12% below the national average

PER CAPITA INCOME FOR POPULATION: $43,980

TAX RATING FOR RETIREES: Tax Friendly

The small-town feel and affordability make Mayfield one of the best cities to retire in Kentucky. Located in the southwestern corner of the state, you’ll find historical monuments, parks, and plenty of beautiful farmland.

Lexington

CITY POPULATION: 323,152

SHARE OF POPULATION 65+: 13%

COST OF LIVING FOR RETIREES: 4% below the national average

PER CAPITA INCOME FOR POPULATION: $34,442

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.

Ashland

CITY POPULATION: 20,146

SHARE OF POPULATION 65+: 18.3%

COST OF LIVING FOR RETIREES: 11% below the national average

PER CAPITA INCOME FOR POPULATION: $24,096

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.

Frankfort

CITY POPULATION: 27,755

SHARE OF POPULATION 65+: 16.1%

COST OF LIVING FOR RETIREES: 11% above the national average

PER CAPITA INCOME FOR POPULATION: $29,288

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.

Paducah

CITY POPULATION: 24,865

SHARE OF POPULATION 65+: 19.5%

COST OF LIVING FOR RETIREES: 8% below the national average

PER CAPITA INCOME FOR POPULATION: $32,097

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.

Bowling Green

CITY POPULATION: 70,543

SHARE OF POPULATION 65+: 11%

COST OF LIVING FOR RETIREES: 8% below the national average

PER CAPITA INCOME FOR POPULATION: $24,083

TAX RATING FOR RETIREES: Tax Friendly

This charming college town is one of the best places to retire in Kentucky 2020 and 2021 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.

Shelbyville

CITY POPULATION: 16,585

SHARE OF POPULATION 65+: 11.8%

COST OF LIVING FOR RETIREES: 5% below the national average

PER CAPITA INCOME FOR POPULATION: $29,825

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: 16,263

SHARE OF POPULATION 65+: 16.1%

COST OF LIVING FOR RETIREES: 12% below the national average

PER CAPITA INCOME FOR POPULATION: $43,980

TAX RATING FOR RETIREES: Tax Friendly

This Cincinnati, Ohio-area 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.

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.

Best Places To Retire

Getting Started


Northeastern U.S. Best Places To Retire


Southern U.S. Best Places To Retire


Midwestern U.S. Best Places To Retire


Western U.S. Best Cities To Retire


Share this advice


Stephanie Faris

Stephanie Faris

Stephanie Faris has written about finance for entrepreneurs and marketing firms since 2013. She spent nearly a year as a writer for a credit card processing service and has written about finance for numerous marketing firms and entrepreneurs. Her work has appeared on Money Under 30, The Motley Fool, MoneyGeek, E-commerce Insiders, and GoBankingRates.

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Investing involves risk and past performance is not indicative of future results. Increased spending increases the risk of depleting your savings and performance is not guaranteed. It is very important to do your own analysis before making any decisions based on your own personal circumstances.

For more information, see our Form ADV Part II and other disclosures.

© 2022 Retirable Inc. All rights reserved.

We're accredited and certified by

Legal

Retirable, Inc. ('Retirable') is an SEC registered investment advisor. By using this website, you accept our Terms and Conditions and Privacy Policy. Retirable provides holistic retirement planning services, which are available only to residents of the United States. You must be at least 18 years of age to become a Retirable Premium user. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.

Investing involves risk and past performance is not indicative of future results. Increased spending increases the risk of depleting your savings and performance is not guaranteed. It is very important to do your own analysis before making any decisions based on your own personal circumstances.

For more information, see our Form ADV Part II and other disclosures.

© 2022 Retirable Inc. All rights reserved.

We're accredited and certified by