Kentucky income tax rate 2026
OfficialKentucky rates, brackets and the tax on common salaries.
- Rate
- 3.5%
- Tax on $75,000
- $2,507
- 3.3% effective
- Tax on $100,000
- $3,382
- 3.4% effective
- Rank among taxing states
- #29 of 42
- by tax taken on $75,000, 1 takes the most
What is the Kentucky income tax rate in 2026?
Kentucky taxes wages at a flat 3.5% in 2026. On a $75,000 salary, Kentucky income tax is $2,507, an effective rate of 3.34%.
How this is calculated
- The effective rate is the yearly state income tax divided by gross pay, after the state's deductions and exemptions.
- The reference worker is a single filer with one job, paid every two weeks, with a standard Form W-4 and no pre-tax deductions, under 65.
Kentucky income tax brackets for 2026
Kentucky has one flat rate of 3.5% for every filer, so there are no brackets: the same rate applies to every dollar of taxable income. Federal income tax comes on top, under the 2026 federal tax brackets.
Single
| Taxable income over | Rate |
|---|---|
| $0 | 3.5% |
Married filing jointly
| Taxable income over | Rate |
|---|---|
| $0 | 3.5% |
Head of household
| Taxable income over | Rate |
|---|---|
| $0 | 3.5% |
How much Kentucky income tax do you pay on $100,000?
On $100,000 of wages, Kentucky income tax is $3,382 in 2026, an effective rate of 3.38%. The table runs from $30,000 to $300,000.
How this is calculated
- Each salary is single filer wages with no pre-tax deductions, through the state's rules for the year.
- The reference worker is a single filer with one job, paid every two weeks, with a standard Form W-4 and no pre-tax deductions, under 65.
What is the Kentucky standard deduction in 2026?
The Kentucky standard deduction is $3,360 for single filers and $3,360 for married couples filing jointly in 2026.
- Standard deduction, single
- $3,360
- Married filing jointly
- $3,360
- Personal exemption
- None
How did Kentucky income tax change in 2026, and what changes in 2027?
Kentucky cut its rate to 3.5% in 2026, from 4% in 2025. No 2027 schedule has been published yet.
| Tax year | Kind | Lowest rate | Top rate | Standard deduction, single | Status |
|---|---|---|---|---|---|
| 2025 | flat | 4% | 4% | $3,270 | official |
| 2026 | flat | 3.5% | 3.5% | $3,360 | official |
How does Kentucky income tax compare with other states?
On $75,000, Kentucky income tax ranks #29 of 42 states that tax wages, where #1 takes the most. The state income tax rates page compares all of them.
How this is calculated
- Each state's income tax on the same $75,000 salary, single filer, under its rules for 2026.
- States without a wage income tax are left out of this rank.
- The reference worker is a single filer with one job, paid every two weeks, with a standard Form W-4 and no pre-tax deductions, under 65.
Do Kentucky cities or counties charge income tax?
Kentucky has 170 cities that tax wages through an occupational license tax, plus 87 counties, and the calculator includes 6 of them, the largest, at 1% to 2.75%. The Kentucky paycheck calculator adds the one you pick.
| Locality | Kind | Resident rate | Note |
|---|---|---|---|
| Louisville Metro (Jefferson County) | city | 2.2% | 2.2% of gross wages for residents who work in Louisville Metro (1.45% for nonresidents) |
| Lexington (Fayette County) | city | 2.75% | 2.75% of gross wages for residents who work in Fayette County: 2.25% urban county fee plus 0.5% school tax |
| Bowling Green | city | 2% | 2% of gross wages for work inside Bowling Green city limits |
| Warren County (outside Bowling Green) | county | 1.5% | 1.5% of gross wages for residents who work in the county outside Bowling Green: 1% county tax plus 0.5% school tax |
| Owensboro | city | 1.78% | 1.78% of gross wages for work inside Owensboro city limits |
| Daviess County (outside Owensboro) | county | 1% | 1% of gross wages for work in Daviess County outside Owensboro |
How is Kentucky income tax withheld from a paycheck?
Employers withhold Kentucky income tax from each paycheck, using the Form K-4 each employee fills in. On a $75,000 salary paid every two weeks, that is $96.44 a paycheck.
Employer withholding tables can differ from the yearly tax owed; the return settles the difference.
How this is calculated
- Kentucky withholding tax formula: annual wages minus the $3,360 standard deduction, times 3.5%, divided by the paychecks. Kentucky's family size and senior credits are not in the formula.
Questions people ask
How much Kentucky tax is withheld from a bonus?
Employers can withhold Kentucky tax on a bonus at a flat 3.5%. The return settles the actual tax on it.
Does Kentucky tax overtime and tips?
Yes. Kentucky taxes overtime and tips in full. Federal law lets workers deduct qualified tips and the extra half of overtime pay, within limits, from 2025 to 2028, but Kentucky has not adopted that.
Do 401(k) contributions lower Kentucky income tax?
Yes. Traditional 401(k) contributions lower Kentucky taxable wages, as they do for federal income tax.