Kentucky income tax brackets for 2026
Kentucky taxes wages at a flat 3.5%. The rates apply to taxable income: your wages after pre-tax deductions and the deductions and exemptions shown below.
| All filing statuses: taxable income | Rate |
|---|---|
| Over $0 | 3.5% |
Deductions, exemptions and credits
| Standard deduction | $3,360 single · $3,360 married · $3,360 head of household |
|---|
- Kentucky's flat rate fell from 4% to 3.5% on January 1, 2026, after the state met its revenue triggers and the legislature approved the cut.
- The standard deduction is $3,360 and is not doubled for married couples filing jointly.
- Local occupational taxes are widespread, so many Kentucky workers pay 1% to 2.5% on top of the state rate.
No Kentucky payroll deductions
Kentucky does not take disability, paid leave or unemployment contributions from employees. State unemployment insurance is paid by employers, so the only deductions from a Kentucky paycheck are federal taxes, Kentucky income tax and anything you choose, such as 401(k) contributions or health insurance.
Local income taxes in Kentucky
Most Kentucky cities and counties charge an occupational license tax on wages earned there. Louisville Metro charges residents 2.2% and non-residents 1.45%; Lexington-Fayette charges 2.25%. Enter your local rate.
Local taxes are not added automatically because they depend on your address and where you work. Enter your rate in the Local income tax field (for example 2.2%) to include it.
Example: $60,000 salary in Kentucky
A single filer earning $60,000 a year, paid every two weeks, with a standard 2026 W-4 and no 401(k) or health deductions:
| Every two weeks | Per paycheck | Per year |
|---|---|---|
| Gross pay | $2,307.69 | $60,000.00 |
| Federal income tax | -$193.08 | -$5,020.00 |
| Social Security (6.2%) | -$143.08 | -$3,720.00 |
| Medicare (1.45%) | -$33.46 | -$870.00 |
| Kentucky income tax | -$76.25 | -$1,982.40 |
| Take-home pay | $1,861.83 | $48,407.60 |
Kentucky income tax is about $1,982.40 a year here, 3.3% of gross pay. All taxes together take 19.3% of pay. Federal withholding is the 2026 single schedule: $60,000 less the $8,600 allowance gives $51,400, taxed at $1,240 plus 12% above $19,900, or $5,020 a year.
Take-home pay in Kentucky at different salaries
Yearly take-home pay for a single filer in Kentucky, paid every two weeks, with no pre-tax deductions or local tax. For a married couple filing jointly on $120,000, take-home pay is about $96,698 a year (19.4% in taxes).
| Salary | Kentucky tax | Take-home per year | Per paycheck |
|---|---|---|---|
| $30,000 | $932 | $25,353 | $975.10 |
| $45,000 | $1,457 | $36,880 | $1,418.47 |
| $60,000 | $1,982 | $48,408 | $1,861.83 |
| $80,000 | $2,682 | $62,428 | $2,401.06 |
| $100,000 | $3,382 | $75,798 | $2,915.29 |
| $150,000 | $5,132 | $108,659 | $4,179.18 |
| $250,000 | $8,632 | $174,550 | $6,713.45 |
How the Kentucky paycheck estimate works
Federal income tax follows IRS Publication 15-T for 2026: your paycheck is annualized, an allowance for the standard deduction is taken off, the 2026 withholding schedule for your filing status is applied, and W-4 credits and extra withholding are added back per paycheck. Social Security is 6.2% of wages up to $184,500 and Medicare 1.45%, plus 0.9% on wages over $200,000.
Kentucky tax is estimated for the whole year: wages after pre-tax deductions, less the standard deduction, run through the brackets above, then divided by the number of paychecks.
Kentucky tax = Brackets(Wages − pre-tax deductions − standard deduction)