The Kentucky income tax rate is 5% and it is a flat tax rate, meaning that no matter what level of income you earn in Kentucky, the income tax rate remains the same.
There are a total of eleven states in the U.S. that try to keep things simple when it comes to state income tax rates by imposing a flat rate. The Kentucky income tax rate is one of the states that lock in their income tax rate regardless of whether you earn $15,000 a year or $215,000+ per year.
The attraction to move from another state (or country) to Kentucky can be appealing for many reasons, but the fact that the Kentucky income tax rate is fixed at 5% is even more enticing because it allows you to earn more money and not pay a higher rate of income tax.
Income taxes are something we all need to pay and we are going to specifically cover the Kentucky income tax rate when you take into consideration the other taxes you will be liable to pay on your income if you reside in Kentucky.
Kentucky State Income Tax Rate
We are not trying to dampen anyone’s hopes of only paying a 5% Kentucky income tax rate. But, even though the Kentucky state income tax rate is fixed at 5%, you will still have to pay other taxes on your income whether you work for someone else or own a Kentucky business or franchise.
If you live and work in Kentucky your paycheck will reflect 5% for income tax deductions regardless of the amount your earn. But, you will pay other Federal taxes that will affect your take-home pay. Likewise, if, as a business owner you pay yourself a salary through payroll or take a monthly, quarterly, or annual distribution/dividend from the net profit your business generates, you will still be liable for some tax.
Having the Kentucky state income tax rate fixed at 5% is great. It is also simple and transparent and doesn’t require any complicated calculations. Since the US government is made up of local, state, and federal jurisdictions, you can be certain that in addition to the flat Kentucky income tax rate, that the US federal government is going to tax you in one form or another on your income.
The goal of the information we are providing you with is to give you an overview of the likely tax you will pay on your earnings in Kentucky. There are multiple factors that affect your tax liability such as being single or married, having children and/or dependents, and other circumstances, and there is never a one-size-fits-all scenario, even though the Kentucky state income tax rate is fixed at 5%. You should always consider seeking the help of a Kentucky tax professional when filing taxes.
One thing you must always remember is that a flat 5% Kentucky income tax rate does not mean that you will not be liable to pay other taxes on your earnings – it might just mean you will pay less than if you lived or worked in another state with a higher income tax rate. You should also be aware that while the Kentucky state income tax rate is flat regardless of your income level, you are still liable to pay Kentucky sales tax which is quite low compared to other states, at a flat, statewide 6%.
Kentucky income tax calculator
Although the Kentucky state income tax rate is 5% that is a flat rate regardless of your income level, we have provided you with various scenarios of the tax you will pay on your income as a resident of Kentucky. The following Kentucky income tax calculator should be used for approximation purposes and does not represent legal authority, or the exact amount of Kentucky income tax (including Federal and FICA tax) that you will be liable for – it is a guide based on information from the IRS, the Commonwealth of Kentucky Department of Revenue, and other sources.
The range we have provided in the Kentucky income tax calculator is from $1,200 per month or $14,400 per year to $12,000 per month, or $144,000 per year. The gross monthly income of $1,256.67 or $15,080.04 per year in the table represents the minimum wage in Kentucky in 2020 of $7.25 per hour. A standard full-time position in the US typically includes a 40-hour workweek that translates to 2,080 hours worked in a year (40 hours x 52 weeks).
Finally, there are two unique aspects of Kentucky’s tax system. The first is local income tax rates, which are collected by both counties and cities, and range from 0.01% up to 2.50% of Kentucky resident’s income. The second is its inheritance tax. Kentucky is one of just six states to impose a tax on inheritances. The local income tax rates imposed by counties and cities will affect the income tax you pay in Kentucky.
| Annual Gross Income | Monthly Gross Income | FICA Taxes (7.65%) | Federal Income Tax | Kentucky Income Tax rate (5.00%) | Net Monthly Income | Net Annual Income |
|---|---|---|---|---|---|---|
| $14,400.00 | $1,200.00 | $91.80 | $16.67 | $60.00 | $1,031.53 | $12,378.36 |
| $15,080.04 | $1,256.67 | $96.14 | $22.33 | $62.83 | $1,075.37 | $12,904.45 |
| $15,600.00 | $1,300.00 | $99.45 | $26.67 | $65.00 | $1,108.88 | $13,306.56 |
| $16,800.00 | $1,400.00 | $107.10 | $36.67 | $70.00 | $1,186.23 | $14,234.76 |
| $18,000.00 | $1,500.00 | $114.75 | $46.67 | $75.00 | $1,263.58 | $15,162.96 |
| $24,000.00 | $2,000.00 | $153.00 | $99.54 | $100.00 | $1,647.46 | $19,769.52 |
| $30,000.00 | $2,500.00 | $191.25 | $159.54 | $125.00 | $2,024.21 | $24,290.52 |
| $36,000.00 | $3,000.00 | $229.50 | $219.54 | $150.00 | $2,400.96 | $28,811.52 |
| $42,000.00 | $3,500.00 | $267.75 | $279.54 | $175.00 | $2,777.71 | $33,332.52 |
| $48,000.00 | $4,000.00 | $306.00 | $339.54 | $200.00 | $3,154.46 | $37,853.52 |
| $54,000.00 | $4,500.00 | $344.25 | $411.83 | $225.00 | $3,518.92 | $42,227.04 |
| $60,000.00 | $5,000.00 | $382.50 | $521.83 | $250.00 | $3,845.67 | $46,148.04 |
| $66,000.00 | $5,500.00 | $420.75 | $631.83 | $275.00 | $4,172.42 | $50,069.04 |
| $72,000.00 | $6,000.00 | $459.00 | $741.83 | $300.00 | $4,499.17 | $53,990.04 |
| $78,000.00 | $6,500.00 | $497.25 | $851.83 | $325.00 | $4,825.92 | $57,911.04 |
| $84,000.00 | $7,000.00 | $535.50 | $961.83 | $350.00 | $5,152.67 | $61,832.04 |
| $90,000.00 | $7,500.00 | $573.75 | $1,071.83 | $375.00 | $5,479.42 | $65,753.04 |
| $96,000.00 | $8,000.00 | $612.00 | $1,181.83 | $400.00 | $5,806.17 | $69,674.04 |
| $102,000.00 | $8,500.00 | $650.25 | $1,298.63 | $425.00 | $6,126.12 | $73,513.44 |
| $108,000.00 | $9,000.00 | $688.50 | $1,418.63 | $450.00 | $6,442.87 | $77,314.44 |
| $114,000.00 | $9,500.00 | $726.75 | $1,538.63 | $475.00 | $6,759.62 | $81,115.44 |
| $120,000.00 | $10,000.00 | $765.00 | $1,658.63 | $500.00 | $7,076.37 | $84,916.44 |
| $132,000.00 | $11,000.00 | $841.50 | $1,898.63 | $550.00 | $7,709.87 | $92,518.44 |
| $144,000.00 | $12,000.00 | $885.45 | $2,138.63 | $600.00 | $8,375.92 | $100,511.04 |
Kentucky Income Tax Brackets
The above table provides you with a broad range of different Kentucky income tax brackets scenarios. The income tax calculator used in the table above is based on a single taxpayer (not married or filing as married) claiming one personal exemption.
The Kentucky income tax rates in the table reflect almost a worst-case scenario for a US taxpayer because those that are married and have dependents can typically take advantage of other deductions, which would effectively make the federal income tax you pay, less than what you see in the table.
Again, you should always consult a professional when it comes to calculating your Kentucky tax liability, since other factors may affect the amount of income tax you pay on your earnings in Kentucky. The Kentucky income tax brackets are fixed at 5% as noted on the table, but you are still responsible for paying Social Security (6.2%) and Medicare (1.45%), totaling 7.65%.
You are also responsible for paying Federal Income Tax regardless of whether you reside in Kentucky with its low and fixed 5% income tax rate. These various tax brackets are illustrated in the table above and vary based on your income level.
Commonwealth of Kentucky – Department of Revenue Contact Details
The Kentucky Department of Revenue is based in Frankfort, KY. They can be contacted by phone, at their office(s), and through a website contact form. The main office address is as follows:
Kentucky Department of Revenue
501 High Street
Frankfort, KY40601
Phone: (502) 564-4581
TTY: (502) 564-3058
Website: Kentucky Dept of Revenue
Here is the website that lists all the 10 department of revenue field offices in Kentucky. The Office of Field Operations consists of approximately 200 employees located at ten Taxpayer Service Centers across the Commonwealth. These service centers are a link between taxpayers and the Department of Revenue employees located in Frankfort.
