Kentucky tax summary for 2026
| Tax on wages | Flat rate |
|---|---|
| Starting point | Federal adjusted gross income |
| Rates (single) | 3.5% |
| Standard deduction | Single $3,360 · Married filing jointly $3,360 · Head of household $3,360 · Married filing separately $3,360 |
| Personal exemption | None |
| Federal income tax deduction | Not allowed |
| Employee payroll taxes | None |
| Local income taxes | Yes — 2 in our data |
Kentucky income tax brackets 2026
Rates apply to Kentucky taxable income, after the deductions above. Married filing separately uses the single brackets unless the state publishes its own.
| Taxable income over | Up to | Rate |
|---|---|---|
| $0 | and up | 3.5% |
Local income taxes in Kentucky
Kentucky cities and counties levy Occupational License Taxes (OLT) on wages. Louisville Metro and Lexington-Fayette are the two largest municipalities. Many other Kentucky jurisdictions also levy occupational taxes at varying rates (look up via the Kentucky Department of Revenue or individual municipality). Basis: wages; applies to employees for compensation earned within Louisville Metro or Lexington-Fayette Urban County.
| Jurisdiction | Resident rate | Nonresident rate |
|---|---|---|
| Louisville Metro (Jefferson County) | 2.2% | 1.45% |
| Lexington-Fayette Urban County Government (LFUCG) | 2.25% | 2.25% |
Worked example: $65,000, single, paid biweekly
Computed by the same engine as the calculator, with no pre-tax deductions and no local tax.
| Line | Per paycheck | Annual |
|---|---|---|
| Gross pay | $2,500.00 | $65,000 |
| Federal income tax | $216.15 | $5,620 |
| Social Security | $155.00 | $4,030 |
| Medicare | $36.25 | $943 |
| Kentucky income tax | $82.98 | $2,157 |
| Take-home pay | $2,009.62 | $52,250 |
Effective tax rate 19.6%; tax on the next dollar earned 23.2%. Kentucky taxable income is $61,640. Adding Louisville Metro (Jefferson County) local tax would cost $1,430 a year.
Second example: $120,000, married filing jointly, two children
Take-home $101,098 a year ($3,888.37 biweekly). Federal income tax $5,640 after a $4,400 Child Tax Credit, Social Security and Medicare $9,180, Kentucky income tax $4,082.
How the Kentucky estimate is calculated
- Start from federal adjusted gross income — wages minus traditional 401(k) and Section 125 deductions.
- Subtract the Kentucky standard deduction for your filing status.
- Apply the flat rate (married filing separately uses the single brackets).
- If you pick a locality, add local tax on wages.
- Divide the annual total by your number of paychecks.
What this Kentucky calculator does not model
- Married couples with two incomes may file 'separately on a combined return' (each spouse gets the $3,360 deduction) — the estimate uses the joint-return rule (one deduction)
- Family size tax credit
- Education tuition tax credit
- Child and dependent care credit
- Other Kentucky nonrefundable and refundable credits
- Kentucky retirement income exclusions
- Local occupational license taxes (see local data)
Data notes
- Flat 3.5% rate for tax year 2026 (KRS 141.020, HB 1 of 2025).
- Standard deduction $3,360 for 2026 (2026 Kentucky Withholding Formula; adjusted annually under KRS 141.081(2)(a)).
- A joint return gets one $3,360 standard deduction (Form 740 instructions); federal head-of-household filers use Kentucky filing status 1 (single).
- No personal exemptions (Kentucky uses a family size tax credit instead — not modeled).
Sources
- State income tax: 2026 Kentucky Withholding Tax Formula (42A003) (read 2026-10-07)
- State income tax: Kentucky Employer Payroll Withholding – 2026 rate 3.5% (read 2026-10-07)
- State income tax: Kentucky DOR – Form 740 Instructions (2025): 'If filing a joint return, only one standard deduction is allowed'; head of household files as single (read 2026-10-07)
- Local income tax: FORM W-1 INSTRUCTIONS TAX YEAR 2025 – Louisville Metro Revenue Commission (read 2026-10-07)
Federal figures come from the IRS and SSA; see the methodology page.
Compare nearby and similar states
Neighboring states: Illinois, Indiana, Missouri, Ohio, Tennessee, Virginia, West Virginia
States with a similar tax setup: Colorado, North Carolina, Pennsylvania, Idaho, Iowa, Georgia
See every state side by side in the salary comparison by state, or browse all state paycheck calculators.