The minimum wage in Lexington is $7.25/hour in 2026. See how it compares to the MIT living wage of $19.00/hour and local cost of living.
Last updated: May 2026 · Data: MIT Living Wage Calculator, C2ER, U.S. Census, BLS, IRS, state and city sources
Calculate annual, monthly, and weekly income at any hourly wage in Lexington.
The minimum wage in Lexington is the federal rate of $7.25/hour. Kentucky has not raised its minimum wage above the federal floor and prevents cities from setting their own, so the federal minimum of $7.25/hour applies to most private employers in Lexington. The bigger question for most workers is how that compares to what it actually costs to live in Lexington. With average 1-bedroom rent near $1,100/month and a cost-of-living index of 89 (US average = 100), the gap between the minimum wage and a true living wage is significant.
| Benchmark (Lexington, 2026) | Hourly | Annual (full-time) |
|---|---|---|
| Applicable minimum wage | $7.25 | $15,080 |
| MIT living wage (single adult) | $19.00 | $39,520 |
| MIT living wage (family of four, one earner) | $38.50 | $80,080 |
| Federal minimum wage | $7.25 | $15,080 |
| Average rent (1-bedroom, annual) | - | $13,200 |
Living wage figures: MIT Living Wage Calculator for Fayette County. Minimum wage reflects the rate applicable to most private employers in Lexington.
Lexington is the second-largest city in Kentucky and the heart of the Bluegrass Region, known worldwide as the Horse Capital of the World, with an economy spanning the University of Kentucky, healthcare, advanced manufacturing (including a major Toyota plant nearby), and equine and agriculture industries.
| Local Metric | Lexington (2026 estimate) |
|---|---|
| Metro population | 325,000 |
| County / jurisdiction | Fayette County |
| Cost of living index (US avg = 100) | 89 |
| MIT living wage, single adult | $19.00/hour |
| MIT living wage, one earner supporting a family of four | $38.50/hour |
| Applicable minimum wage | $7.25/hour |
| Average rent, 1-bedroom | $1,100/month |
| Average rent, 2-bedroom | $1,350/month |
| Median home price | $280,000 |
| Median household income | $62,000/year |
| Combined sales tax rate | 6% |
| Effective property tax rate | 0.9% of value/year |
Local figures are 2026 estimates compiled from the MIT Living Wage Calculator, the C2ER Cost of Living Index, U.S. Census and Zillow housing data, and city and county sources. Verify current figures before relying on them.
The minimum wage in Lexington is the federal rate of $7.25/hour. Kentucky has not raised its minimum wage above the federal floor and prevents cities from setting their own, so the federal minimum of $7.25/hour applies to most private employers in Lexington. A full-time worker (40 hours/week, 52 weeks) earns about $15,080 per year gross before taxes at that rate.
Not for a single adult. The MIT Living Wage Calculator estimates a single adult in Fayette County needs about $19.00/hour (roughly $39,520/year) to cover basic costs. That is $11.75/hour above the applicable minimum wage, and a one-earner family of four needs closer to $38.50/hour.
At $7.25/hour, full-time work (2,080 hours/year) produces about $15,080 gross. Part-time at 30 hours/week is roughly $11,310/year. Average 1-bedroom rent in Lexington is about $1,100/month, or $13,200/year.
Kentucky has not raised its minimum wage above the federal floor and prevents cities from setting their own, so the federal minimum of $7.25/hour applies to most private employers in Lexington.
The federal minimum wage is $7.25/hour and has not changed since 2009. Kentucky has not raised its minimum wage above the federal floor, so the federal minimum of $7.25/hour applies in Lexington.