Kentucky State Income Tax Overview
Kentucky (KY) state income tax rate: 4.0% flat (flat rate system)
Kentucky Income Tax Brackets (2026)
Flat 4.0% on all Kentucky taxable income (reduced from 4.5% in 2023; targeting further reductions)
Kentucky converted from a graduated to a flat income tax system and has been reducing the rate annually. The rate dropped from 5% to 4.5% to 4.0%, with additional cuts possible as revenue targets are met. Kentucky also has a local occupational license tax in many cities and counties.
Median Household Income in Kentucky
The median household income in Kentucky is $52,295. Kentucky's median household income is below the national average. The ongoing income tax rate reductions are part of a broader effort to attract business investment and improve Kentucky's economic competitiveness.
How to Use This Calculator for Kentucky
- Enter your gross income and filing status
- The calculator applies Kentucky's flat income tax rate of up to 4.0% flat
- Subtract your standard deduction and any applicable credits
- Review your estimated state and federal tax liability
Frequently Asked Questions
What is the Kentucky state income tax rate?
Kentucky has a flat income tax with a top rate of 4.0% flat. Flat 4.0% on all Kentucky taxable income (reduced from 4.5% in 2023; targeting further reductions).
How does Kentucky's income tax compare to the national average?
Kentucky's top income tax rate of 4.0% flat applies to a flat rate system. Kentucky converted from a graduated to a flat income tax system and has been reducing the rate annually. The rate dropped from 5% to 4.5% to 4.0%, with additional cuts possible as revenue targets are met. Kentucky also has a local occupational license tax in many cities and counties.
What is the median household income in Kentucky?
The median household income in Kentucky is $52,295. Kentucky's median household income is below the national average. The ongoing income tax rate reductions are part of a broader effort to attract business investment and improve Kentucky's economic competitiveness.
Is this state income tax calculator free to use for Kentucky?
Yes, this state income tax calculator is 100% free with no signup required. It includes Kentucky-specific tax rates and calculates your estimated state and federal tax liability instantly.