Business Costs


Kentucky business costs rank among the lowest in the nation. These are some of the key factors that make the Commonwealth a great place to do business.

  • Utilities
    Kentucky has long enjoyed a competitive advantage in the provision of energy, natural gas, and water. Businesses benefit from Kentucky’s low-cost options.
    Learn more about Kentucky’s Utilities
  • Incentives
    Kentucky offers a variety of financial incentives to help offset costs and create new jobs and investment in the Commonwealth. From small business growth to large corporate investment, the Cabinet can help businesses with a variety of incentive options. We find the right solutions.
    Learn more about our incentives here
  • Taxes
    Taxes are an important factor when a company considers a new location or expansion. We have summarized a list of federal, state and local taxes affecting Kentucky businesses.
    Learn more about federal, state and local taxes.

    Foreign Trade Zones and Subzone programs can benefit companies by removing certain disincentives associated with manufacturing.
    Learn more about this Kentucky tax advantage.
  • Labor Costs
    Kentucky’s labor costs are historically below the national average. For example, Kentucky businesses paid 18 percent lower labor costs than the national average in 2014. In addition, over the past few years, productivity per worker in Kentucky has been growing faster than the U.S. overall, growing an average 2.6 percent per year compared to 2.3 percent per year for the U.S. In the manufacturing sector, Kentucky productivity per worker grew at an average rate of 5.1 percent per year, compared with a national average of 3.7 percent.
    Learn more about Kentucky’s workforce
  • Cost of Living
    From housing and groceries to taxes and utility costs, you will find your money goes farther in Kentucky. In fact, according to CNBC, Kentucky has among the lowest cost of living in the nation. This means you’ll have more opportunity to enjoy Kentucky’s beautiful parks and entertainment venues.
    Learn more about life in Kentucky

Phone: (502) 564-7140
Email: econdev@ky.gov

Kentucky Cabinet for Economic Development
300 West Broadway
Frankfort, Kentucky 40601