Kentucky uses a flat state income tax rate on Kentucky taxable income. That makes the statewide tax table simpler than a multi-bracket progressive system, but your actual paycheck can still be affected by federal income tax, Social Security, Medicare, deductions, withholding choices, and local occupational taxes.
This page brings the Kentucky income tax picture together in one place: the state tax rate, Kentucky deductions and adjustments, local income and occupational tax treatment, and the combined federal, state, and FICA rate you actually face on your income.
Every table below is generated from current tax data, so the figures stay accurate year to year, and they match the numbers used by our payroll and income tax calculators.
Kentucky state income tax brackets
Kentucky uses a flat income tax for 2026: every filer pays 3.5% of Kentucky taxable income, regardless of income level or filing status.
The rate applies to Kentucky taxable income — income after the state's own deductions and exemptions, not your gross salary.
Kentucky uses a flat income tax structure rather than a multi-bracket progressive system. The table above shows the current Kentucky state income tax rate for each filing status. Even with a flat state rate, your combined tax rate can still rise as income increases because the federal income tax system is progressive and FICA has its own wage limits and surtax rules.
Kentucky deductions and adjustments
| Filing Status | Standard Deduction | Personal Exemption |
|---|---|---|
| Single | $3,360 | $0 |
| Married Filing Jointly | $3,360 | $0 |
| Married Filing Separately | $3,360 | $0 |
| Head of Household | $3,360 | $0 |
These amounts are subtracted from income before Kentucky's tax rates apply. They are separate from — and in addition to — the federal standard deduction.
Kentucky taxable income does not always match federal taxable income. The state has its own deductions, additions, subtractions, credits, and retirement-income rules that can change how much income is subject to Kentucky tax. The table above shows the Kentucky deduction and adjustment rules stored in the PaycheckNet database.
Kentucky local income and occupational taxes
| Locality | Resident Rate | Non-Resident Rate | Applies To |
|---|---|---|---|
| Lexington-Fayette | 2.25% | 2.25% | Earned income (wages) |
| Louisville / Jefferson County Metro | 2.2% | 1.45% | Earned income (wages) |
| Other KY county/city (median 1% occupational tax) | 1% | 1% | Earned income (wages) |
Local rates apply to wages in addition to federal and state income tax. "Resident" is the rate for people who live in the locality; "non-resident" applies to people who only work there.
Only Louisville and Lexington are listed individually. 87 of Kentucky's 120 counties and many cities levy occupational taxes on wages (median 1% — use the "Other KY county/city" option as an estimate); county, city and school-board taxes can stack above it.
Kentucky local tax can be important because many cities, counties, and school districts use occupational license taxes or local payroll-related taxes. Depending on where you live or work, these can apply on top of Kentucky state income tax. If the PaycheckNet database contains Kentucky locality-specific income or occupational tax entries, they will appear in the table above.
What you actually pay in Kentucky
| Gross Income | Federal | Kentucky | FICA | Combined |
|---|---|---|---|---|
| Up to $3,360 | -7.65% | 0% | 7.65% | 0% |
| $3,360 – $16,100 | 0% | 3.5% | 7.65% | 11.15% |
| $16,100 – $28,500 | 10% | 3.5% | 7.65% | 21.15% |
| $28,500 – $66,500 | 12% | 3.5% | 7.65% | 23.15% |
| $66,500 – $121,800 | 22% | 3.5% | 7.65% | 33.15% |
| $121,800 – $184,500 | 24% | 3.5% | 7.65% | 35.15% |
| $184,500 – $200,000 | 24% | 3.5% | 1.45% | 28.95% |
| $200,000 – $217,875 | 24% | 3.5% | 2.35% | 29.85% |
| $217,875 – $272,325 | 32% | 3.5% | 2.35% | 37.85% |
| $272,325 – $656,700 | 35% | 3.5% | 2.35% | 40.85% |
| Over $656,700 | 37% | 3.5% | 2.35% | 42.85% |
Marginal rate = the tax on your NEXT dollar of gross income. Because the federal government and Kentucky each subtract their own deductions before applying brackets, the ranges here are expressed in gross income — the two bracket tables cannot simply be added together.
FICA is the employee share of Social Security and Medicare. It applies from the first dollar, stops on wages above the Social Security cap, and rises again where the Additional Medicare surtax begins.
| Gross Income | Federal Tax | Kentucky Tax | FICA | Total Tax | Take-Home Pay | Effective Rate |
|---|---|---|---|---|---|---|
| $30,000 | $1,420 | $932 | $2,295 | $4,647 | $25,353 | 15.5% |
| $50,000 | $3,820 | $1,632 | $3,825 | $9,277 | $40,723 | 18.6% |
| $75,000 | $7,670 | $2,507 | $5,738 | $15,915 | $59,085 | 21.2% |
| $100,000 | $13,170 | $3,382 | $7,650 | $24,202 | $75,798 | 24.2% |
| $150,000 | $24,734 | $5,132 | $11,475 | $41,341 | $108,659 | 27.6% |
| $200,000 | $36,734 | $6,882 | $14,339 | $57,955 | $142,045 | 29% |
| $300,000 | $68,134 | $10,382 | $16,689 | $95,206 | $204,794 | 31.7% |
| $500,000 | $138,134 | $17,382 | $21,389 | $176,906 | $323,094 | 35.4% |
Effective rate = total tax as a share of gross income. It is always lower than your top marginal rate, because only the last slice of income is taxed at the highest bracket.
The combined table shows what a Kentucky resident really pays on their next dollar once federal tax, Kentucky state tax, and FICA are stacked together. This is often more useful than looking at the state rate alone, because your paycheck is reduced by several layers of tax at the same time. If a local occupational tax applies to you, treat it as an additional local layer on top of the statewide calculation.
Social Security and Medicare
| Employee Rate | Wage Limit | |
|---|---|---|
| Social Security | 6.2% | First $184,500 of wages |
| Medicare | 1.45% | All wages (no cap) |
| Additional Medicare | 0.9% | Wages above $200,000 (single / head of household), $250,000 (married filing jointly), $125,000 (married filing separately) |
FICA comes out of every paycheck in every state and is separate from income tax. Employers pay a matching share on top of these employee rates; self-employed workers pay both halves through self-employment tax.
FICA applies the same way in Kentucky as it does across the rest of the country. The table lists the current Social Security wage cap, the Medicare rate, and the additional Medicare surtax that higher earners pay.
Work out your Kentucky take-home pay
To turn these tables into a practical paycheck estimate, use the payroll calculator and select Kentucky as your state. To compare Kentucky against another state, use the tax comparison calculator and keep the salary, filing status, and deductions consistent across both scenarios.
Frequently asked questions
Is Kentucky income tax flat or progressive?
Kentucky uses a flat state income tax rate rather than a multi-bracket progressive state income tax. The federal tax system is still progressive, so your combined tax rate can still change as income increases.
Does Kentucky have local income tax?
Kentucky can have local occupational or payroll-related taxes in many cities, counties, and school districts. Check the local tax table on this page for the entries available in the PaycheckNet database.
Do Kentucky workers still pay Social Security and Medicare?
Yes. Kentucky workers still pay FICA taxes, which include Social Security and Medicare. These apply separately from Kentucky state income tax and any applicable local occupational taxes.