What is the Kentucky state income tax rate?

Kentucky currently uses a single flat state income tax rate on most taxable income. That means the same percentage applies regardless of income level, although your effective tax rate will be lower once deductions and credits are considered. Always confirm the latest rate with the Kentucky Department of Revenue, as the legislature has been phasing the rate down over time.

Does Kentucky tax Social Security benefits?

Kentucky does not tax Social Security retirement benefits. In addition, Kentucky offers exclusions for certain types of pension and retirement income, subject to dollar limits and eligibility rules. The calculator on this page focuses on wage and self-employment income and does not fully model every retirement exclusion.

Are local income taxes charged in Kentucky?

Many Kentucky cities and counties impose local occupational license or wage taxes in addition to the state income tax. These local taxes can materially change your total tax bill. This calculator lets you add an optional local tax rate so you can approximate your combined state and local burden.

How accurate is this Kentucky income tax calculator?

The calculator is designed for quick planning and education. It uses the current Kentucky state rate, basic standard deduction assumptions, and a simplified treatment of self-employment and local taxes. It does not replace professional tax advice or official tools from the Kentucky Department of Revenue or the IRS.

How do I lower my Kentucky income tax bill?

Common ways to reduce your Kentucky income tax include contributing to tax-advantaged retirement accounts, using Health Savings Accounts or Flexible Spending Accounts if eligible, and making sure you claim all deductions and credits you qualify for. Because Kentucky uses a flat rate, reducing taxable income by one dollar generally saves the same percentage of tax at all income levels.

Kentucky Income Tax Calculator (2025-2026)

Estimate your Kentucky state income tax, optional local occupational tax, and take-home pay based on your filing status and income.

Kentucky flat tax State + local W-2 & self-employment

Kentucky income tax calculator

Filing status

Pay frequency

Gross income (before tax)

Enter income for the selected pay frequency (e.g., annual salary if “Annual” is chosen).

Pre-tax retirement contributions (401(k), 403(b), etc.)

Other pre-tax deductions (HSA, FSA, etc.)

Portion of income from self-employment (%)

Used to estimate additional self-employment tax (federal) for planning only.

Local occupational / wage tax rate (optional)

Many KY cities/counties charge 1–2% or more. Enter 0 if not applicable.

Also estimate federal income tax & self-employment tax (rough estimate)

Results

Kentucky state income tax

Effective rate: 0%

Total tax (state + local + federal)

Effective rate: 0%

Take-home pay (after tax)

Per paycheck: $0

Item	Annual	Per paycheck
Gross income	$0	$0
Pre-tax deductions	$0	$0
Kentucky taxable income (after standard deduction)	$0	—
Kentucky state income tax	$0	$0
Local occupational / wage tax	$0	$0
Estimated federal income tax	$0	$0
Estimated self-employment tax (federal)	$0	$0
Total tax	$0	$0
Take-home pay	$0	$0

This tool is for educational and planning purposes only and does not constitute tax, legal, or financial advice. For official guidance, consult the Kentucky Department of Revenue and the IRS.

How Kentucky income tax works

Kentucky currently uses a flat state income tax rate on most taxable income. Unlike progressive systems with multiple brackets, the same percentage applies to your taxable income whether you earn $30,000 or $300,000. Your effective tax rate is lower because of deductions and exclusions.

Basic Kentucky tax formula (simplified)

Kentucky taxable income ≈ Gross income − pre-tax deductions − Kentucky standard deduction

Kentucky state income tax = Kentucky taxable income × KY flat tax rate

What this calculator includes

Current Kentucky flat income tax rate applied to estimated taxable income.
A simplified standard deduction based on filing status (single, married filing jointly, head of household).
Optional local occupational / wage tax rate so you can approximate city or county taxes.
Optional federal income tax and self-employment tax estimates for a more complete picture of your total burden.
Breakdown of annual and per-paycheck gross income, taxes, and take-home pay.

What’s not fully modeled

Kentucky’s tax code includes various credits, exemptions, and special rules that are not fully captured here:

Detailed treatment of retirement income exclusions and pension income thresholds.
Itemized deductions vs. standard deduction at the state level.
All possible nonrefundable and refundable credits.
Complex business, pass-through, or multi-state income situations.

For those situations, use this tool as a starting point and then confirm with a tax professional or official Kentucky Department of Revenue resources.

Understanding your Kentucky tax results

State tax vs. effective tax rate

The calculator shows both your total Kentucky state income tax and your effective state tax rate:

Total KY tax – the dollar amount of state income tax owed on your estimated taxable income.
Effective KY rate – total KY tax divided by your gross income.

Because of the standard deduction and pre-tax contributions, your effective rate will always be lower than the flat statutory rate.

Local occupational / wage taxes

Many Kentucky jurisdictions impose additional local occupational license or wage taxes on earned income. These are separate from the state income tax and can significantly change your total tax bill.

If you know your local rate (for example, 1.5%), enter it in the calculator. The tool will then show:

Estimated local tax in dollars.
Combined state + local effective tax rate.

Federal tax and self-employment tax (optional)

When the “Include federal tax” option is checked, the calculator adds a rough estimate of:

Federal income tax using a simplified bracket model and standard deduction.
Self-employment tax on the portion of income you mark as self-employment.

This is not a full federal tax return and does not account for every credit, deduction, or special rule, but it helps you understand how Kentucky’s state tax fits into your overall tax picture.

Frequently asked questions about Kentucky income tax

Do I have to file a Kentucky state tax return?

Generally, if you are a Kentucky resident or earn income from Kentucky sources and your income exceeds certain thresholds, you must file a state return. Nonresidents with Kentucky-source income may also need to file. Thresholds and rules can change, so always check the latest instructions from the Kentucky Department of Revenue.

How does Kentucky treat retirement income?

Kentucky does not tax Social Security benefits and offers exclusions for certain pension and retirement income up to specified limits. The exact amount you can exclude depends on the type of income and your total retirement income. Because these rules are nuanced, this calculator does not attempt to model every scenario; it is primarily geared toward wage and self-employment income.

Can this calculator handle multiple jobs or spouses with different incomes?

Yes, but you’ll need to combine the incomes manually. For example, if you and your spouse file jointly, add both of your annual incomes and enter the total as “Gross income” with filing status set to “Married filing jointly.” For more complex situations (multiple states, part-year residency, etc.), consult a tax professional.

Where can I find official Kentucky tax forms and guidance?

Official forms, instructions, and detailed guidance are available directly from the Kentucky Department of Revenue. For federal tax matters, refer to the IRS.