Kentucky Take-Home Pay Calculator
4.0% flat rateEstimate your net paycheck after federal taxes, FICA, and Kentucky state income tax.
Last updated: April 2026
Kentucky Income Tax
Kentucky uses a flat 4.0% income tax rate for all residents.
Kentucky State Income Tax: What You Need to Know
Kentucky uses a flat 4.0% income tax rate for all residents.
Kentucky uses a flat 4.0% income tax rate on all taxable income, part of a deliberate multi-year reform effort. The rate was 5% before 2023, cut to 4.5%, then to 4.0% in 2023. Kentucky's legislature built automatic trigger mechanisms into the tax code — if state revenues hit certain thresholds, the rate drops another 0.5 percentage point. Further cuts to 3.5% or lower are possible in coming years depending on revenue performance. Kentucky's standard deduction is $3,160 for single filers — notably lower than the federal $15,000 standard deduction, which means more of your gross income is subject to Kentucky state tax than to federal tax. Kentucky does not allow itemized deductions on the state return; all filers use only the standard deduction. While the state-level math is simple, many Kentucky workers face significant local occupational taxes on top: Louisville Metro combined city and county levy approximately 2.65%, and Lexington-Fayette charges 2.25%. Workers employed in Louisville or Lexington face a combined state-plus-local income tax rate of 6.25%–6.65%. Many smaller Kentucky cities also levy occupational taxes at lower rates. Kentucky does not tax Social Security benefits and exempts up to $31,110 of pension income per year — making it relatively favorable for retirees despite the local tax complexity for working residents.
On top of state taxes, all workers also pay federal income tax based on the 2026 progressive brackets, plus FICA taxes: Social Security (6.2% up to $176,100) and Medicare (1.45% on all wages).
Our calculator applies Kentucky's 4.0% flat rate to your gross income as a simplified estimate. Actual state taxes may vary based on deductions, exemptions, and local taxes not captured in this estimate.
Kentucky Take-Home Pay Examples (2026, Single Filer)
Estimates based on standard deduction, no pre-tax deductions. Last updated: April 2026.
| Salary | Federal Tax | State Tax | FICA | Take-Home |
|---|---|---|---|---|
| $40,000 | $3,167 | $1,474 | $3,060 | $32,299 |
| $60,000 | $6,617 | $2,274 | $4,590 | $46,519 |
| $80,000 | $10,817 | $3,074 | $6,120 | $59,989 |
| $100,000 | $15,617 | $3,874 | $7,650 | $72,859 |
Frequently Asked Questions: Kentucky Taxes
What is Kentucky's income tax rate for 2026?
Kentucky's flat income tax rate is 4.0% for 2026, reduced from 4.5% in 2023 and 5% before 2023. Kentucky's legislature has been systematically lowering the flat rate and may reduce it further depending on state revenue triggers built into the reform legislation.
Does Kentucky allow itemized deductions on the state return?
No. Kentucky does not allow itemized deductions on the state income tax return. All Kentucky taxpayers use the standard deduction of $3,160 for single filers. Mortgage interest, charitable contributions, and other federal itemized deductions have no impact on Kentucky taxable income.
Does Louisville have a city income tax?
Yes. Louisville Metro imposes an occupational license tax on wages earned within the city, and Jefferson County adds additional local tax. Combined, Louisville workers face roughly 2.65% in local income taxes on top of Kentucky's 4.0% state rate — bringing total state+local income tax to about 6.65%.
Does Lexington have a local income tax?
Yes. Lexington-Fayette Urban County government imposes an occupational license tax of 2.25% on wages earned within the jurisdiction, applying to both residents and non-residents who work there. Combined with Kentucky's 4.0% state rate, Lexington workers face about 6.25% in combined state+local income taxes.
Does Kentucky tax Social Security benefits?
No. Kentucky does not tax Social Security benefits. Kentucky also exempts up to $31,110 of pension income from state income tax for all ages. This makes Kentucky reasonably retirement-friendly despite its income tax.
What is Kentucky's minimum wage in 2026?
Kentucky's minimum wage is $7.25/hour — the federal floor. Kentucky has not raised its state minimum above the federal level and preempts cities from setting higher local minimums. Louisville and Lexington briefly had higher local minimums in the mid-2010s before the state legislature preempted them.