Kentucky Income Tax Rates, Tables, and Calculator for 2026
Kentucky has one flat income tax rate of 3.5% for 2026. Compare KY state tax at $75,000, $100,000, and other income levels. See how filing status changes the results and where Kentucky ranks among states.
Kentucky has one individual income tax bracket with a statutory flat rate of 3.5% for 2026. The same flat rate applies regardless of filing status, including Single, Married Filing Jointly, and Married Filing Separately. The 2026 tax year covers income earned from January 1, 2026 through December 31, 2026. For calendar-year filers, federal Form 1040 series returns and Kentucky Form 740 tax returns are generally due April 15, 2027.
Kentucky replaced its progressive income tax brackets with a flat 5% rate in 2018. The rate fell to 4.5% in 2023, then to 4% for 2024 and 2025. House Bill 1, signed February 6, 2025, reduced the rate to 3.5% beginning in 2026. The state standard deduction also increased from $3,270 for 2025 to $3,360 for 2026 under Kentucky's annual inflation adjustment. The Department of Revenue's 2026 estimated income tax worksheet confirms both the lower rate and the increased deduction.
Local occupational taxes can add substantially to Kentucky's 3.5% state income tax. These occupational taxes generally apply to gross wages earned locally, without subtracting the Kentucky standard deduction. In Louisville/Jefferson County, the combined occupational tax rate on wages earned there is 2.2% for residents and 1.45% for nonresidents in 2026. Other cities and counties set their own rates, and the applicable tax depends on where a taxpayer works and, in some cases, lives. These local taxes are excluded from the examples on this page.
Tax Calculator
Kentucky Income Tax Calculator for 2026
Enter annual household income and select a filing status to estimate Kentucky income tax for 2026. Results open in our All 50 States income tax calculator with Kentucky highlighted. The examples below show Kentucky income tax for a Single filer earning $50,000 to $150,000 annually. The marginal tax rate stays at 3.5%, while the effective tax rate rises from 3.26% to 3.42% as the fixed standard deduction covers a smaller share of income. Kentucky's national rank also changes because other states' rates, deductions, and credits affect tax differently as income increases.
How Much Will You Pay in Kentucky?
| Household Income | State Tax | Marginal Rate | Effective Rate | State Rank |
|---|---|---|---|---|
| $50,000 | $1,632 | 3.5% | 3.26% | 33 |
| $75,000 | $2,507 | 3.5% | 3.34% | 23 |
| $100,000 | $3,382 | 3.5% | 3.38% | 19 |
| $125,000 | $4,257 | 3.5% | 3.41% | 17 |
| $150,000 | $5,132 | 3.5% | 3.42% | 17 |
2026 Kentucky State Tax: Single filer, full-year resident, wages only, no dependents, and under age 65. These examples subtract Kentucky's $3,360 standard deduction, with no other deductions, income adjustments, or tax credits. The federal standard deduction does not reduce Kentucky taxable income. Federal, payroll, and local taxes are excluded.
2026 Kentucky State Rank: Kentucky falls in the low to moderate income tax range nationally across these examples, with rankings from 17th to 33rd. The comparison includes all 50 states and the District of Columbia at the same income and filing status, with 1 representing the lowest effective rate. Rankings use unrounded figures. Equal rates share a rank. See the All 50 States income tax calculator for assumptions and sources.
Key takeaway: At $100,000 of annual income, a Single filer pays an estimated $3,382 in Kentucky state income tax for 2026. The $3,360 standard deduction reduces taxable income to $96,640, keeping the effective tax rate at 3.38%, below the 3.5% marginal rate.
Tax Rates
Kentucky Income Tax Rates
Kentucky is a flat tax state with one statutory individual income tax rate of 3.5% for 2026. The same rate applies to Kentucky taxable income regardless of income level or filing status. Earning more does not move a taxpayer into a higher state income tax bracket. The table shows Kentucky's state income tax bracket and rate history from 2005 to 2026, grouping years when both remained unchanged.
Kentucky State Income Tax Bracket and Rate History, 2005-2026
| Tax Year | Tax Brackets | Tax Rate |
|---|---|---|
| 2026 | 1 | 3.50% |
| 2024-2025 | 1 | 4.00% |
| 2023 | 1 | 4.50% |
| 2018-2022 | 1 | 5.00% |
| 2005-2017 | 6 | 2.00% - 6.00% |
Kentucky replaced its six graduated brackets with a flat 5% rate in 2018, then reduced the rate in 2023, 2024, and 2026. House Bill 1, enacted in 2025, lowered the rate from 4% to 3.5% beginning in 2026. Future reductions depend on statutory revenue conditions and further action by the General Assembly. The current flat-rate structure has no income bracket thresholds to adjust annually for inflation.
Compare States
Compare Kentucky to Other States
The next table compares Kentucky with its seven neighboring states at $75,000 of annual income for a Single filer. The calculations use the same household assumptions and apply each state's deductions, exemptions, and credits. States appear from lowest to highest state income tax, with the difference measured against Kentucky. The marginal rate identifies the tax bracket reached, while the effective rate is state income tax divided by $75,000 of household income, expressed as a percentage.
Kentucky vs Other States at $75,000 of Income (2026)
| State Name | State Rank | Tax on $75K Income | Difference | Marginal Rate | Effective Rate |
|---|---|---|---|---|---|
| Tennessee | 1 | $0 | −$2,507 | 0% | 0.00% |
| Ohio | 12 | $1,619 | −$888 | 2.75% | 2.16% |
| Indiana | 14 | $2,183 | −$324 | 2.95% | 2.91% |
| Kentucky | 23 | $2,507 | $0 | 3.5% | 3.34% |
| Missouri | 25 | $2,534 | +$26 | 4.7% | 3.38% |
| West Virginia | 26 | $2,546 | +$39 | 4.58% | 3.39% |
| Virginia | 45 | $3,498 | +$991 | 5.75% | 4.66% |
| Illinois | 47 | $3,568 | +$1,060 | 4.95% | 4.76% |
2026 State Income Tax Comparison: Single filer, full-year resident, wages only, no dependents, and under age 60. A negative difference means less state income tax than Kentucky. Differences are calculated before rounding to whole dollars. Tennessee does not tax wage income. Federal, payroll, property, sales, and local taxes are excluded.
2026 State Rank: Compares all 50 states and the District of Columbia at $75,000 of income for a Single filer, with 1 representing the lowest effective rate. Rankings use unrounded figures. Equal rates share a rank. The figures follow the state income tax calculator, including its disclosed prior-year inputs where final 2026 amounts are unavailable.
Key takeaway: At $75,000 of annual income, Kentucky has lower state income tax than four of its seven neighboring states. Its estimated $2,507 tax is close to Missouri and West Virginia, which are about $26 and $39 higher. The gap is larger with Virginia and Illinois, where state tax is about $991 and $1,060 higher, respectively.
Examples
Kentucky Income Tax Calculation Examples
The goal of these examples is to compare Single and Married Filing Jointly statuses at the same $75,000 annual income per person. The Single example uses $75,000 of household income, while the Married Filing Jointly example assumes each spouse earns $75,000, for a combined $150,000. The results match our 2026 income tax calculator using $75,000 or $150,000 and the corresponding filing status. The married household files jointly for federal taxes and calculates each spouse's Kentucky tax separately on a combined state return.
To simplify the calculations, both examples assume full-year Kentucky residency, W-2 wages only, no dependents, and taxpayers under age 65 who are not blind or claimed as dependents. Kentucky starts with federal adjusted gross income and uses its own standard deduction. The federal standard deduction does not reduce Kentucky taxable income. These examples use the Kentucky standard deduction, with no other deductions, Kentucky additions or subtractions, or tax credits. Local occupational taxes are excluded. See the All 50 States calculator for a full list of assumptions and sources.
Kentucky Filing Status Comparison (2026 Tax Year)
| Tax Metric | Single | Married Filing Jointly |
|---|---|---|
| Household Income | $75,000 | $150,000 |
| Standard Deduction | $3,360 | $6,720 |
| Taxable Income | $71,640 | $143,280 |
| State Income Tax | $2,507 | $5,015 |
| Effective Tax Rate | 3.34% | 3.34% |
| Marginal Tax Rate | 3.5% | 3.5% |
Looking at the table above, we can see that the same 3.5% tax rate applies to both households. Each spouse has the same income and standard deduction as the Single filer, leaving the same taxable income per person. Before rounding, the married household's tax equals the combined tax of two single filers who each earn $75,000. The apparent $1 difference when comparing the rounded table amounts comes from rounding each displayed result independently.
This separate-spouse calculation produces no Kentucky marriage penalty under these assumptions, and both households have a 3.34% effective tax rate. A regular Kentucky joint return allows only one standard deduction, so the state filing method matters. The married filing options FAQ explains the distinction. Next, we will review the step-by-step calculations for each household.
Step-by-Step Example 1: Single
For a single filer with $75,000 of household income, the 2026 Kentucky standard deduction is $3,360. With wages only and no other adjustments, subtracting this deduction leaves $71,640 of Kentucky taxable income.
- Taxable income: Subtract the Kentucky standard deduction from household income. $75,000 − $3,360 = $71,640
- Estimated Kentucky income tax: Multiply taxable income by the flat tax rate of 3.5%. $71,640 × 0.035 = $2,507.40
Kentucky effective tax rate: $2,507.40 divided by $75,000 of household income equals 3.34%, rounded. The estimated state income tax rounds to $2,507 in the comparison table.
Kentucky marginal tax rate: 3.5%, the rate applied to each additional dollar of Kentucky taxable income in this example.
Step-by-Step Example 2: Married Filing Jointly
Now let's apply the same calculation to a married couple filing jointly for federal taxes. Each spouse earns $75,000 with a combined household income of $150,000. Using separate calculations on a combined Kentucky return, each spouse subtracts a $3,360 standard deduction. This leaves $71,640 of taxable income per spouse and $143,280 for the household.
- Each spouse's Kentucky taxable income: Subtract the Kentucky standard deduction from each spouse's wages. $75,000 − $3,360 = $71,640
- Estimated Kentucky income tax per spouse: Multiply each spouse's taxable income by the flat tax rate of 3.5%. $71,640 × 0.035 = $2,507.40
- Combined Kentucky income tax: Add each spouse's calculated tax before rounding. $2,507.40 + $2,507.40 = $5,014.80
Kentucky effective tax rate: $5,014.80 divided by $150,000 of household income equals 3.34%, rounded. The estimated state income tax rounds to $5,015 in the comparison table.
Kentucky marginal tax rate: 3.5%, unchanged from the Single example.
Takeaway
Kentucky Income Tax Takeaways
A flat rate does not mean the entire paycheck is taxed: Kentucky applies its 3.5% rate after the state standard deduction in these examples. Estimated tax is $2,507 for the Single filer earning $75,000 and $5,015 for the married household earning $150,000. Both have a 3.34% effective tax rate, below the statutory marginal rate.
The state filing method matters for married couples: Our married example calculates each spouse's Kentucky tax separately on a combined return, allowing a $3,360 standard deduction for each spouse. Each owes $2,507.40 before rounding, so their combined tax equals the tax of two single filers earning the same $75,000 per person. This produces no Kentucky marriage penalty under these assumptions. A regular Kentucky joint return allows only one standard deduction and would produce a higher tax in this example.
Local taxes can substantially increase the total: A Single filer who lives and earns all $75,000 of wages in Louisville/Jefferson County would pay an additional $1,650 at the 2.2% resident occupational tax rate. Combined with the estimated $2,507 Kentucky income tax, that totals about $4,157, or 5.54% of household income. Local rates vary by community and are excluded from our state comparisons and rankings.
Kentucky falls in the moderate range nationally: At $75,000 of Single income, Kentucky ranks 23rd among the 50 states and the District of Columbia. Its estimated state tax is lower than four of its seven neighboring states, although Missouri and West Virginia are only about $26 and $39 higher. Tennessee, Ohio, and Indiana have lower state income tax under the same assumptions.
FAQ
Frequently Asked Questions
Is Kentucky a flat tax state?
Yes. Kentucky has a flat individual income tax rate of 3.5% for 2026. The same rate applies to Kentucky taxable income regardless of filing status. Deductions and state adjustments can reduce taxable income, so the flat rate generally does not apply to the entire paycheck.
When did Kentucky switch to a flat income tax?
Kentucky replaced its progressive income tax brackets with a flat 5% rate in 2018. The 5% rate remained in place through 2022. It decreased to 4.5% in 2023, 4% for 2024 and 2025, and 3.5% for 2026.
What is the Kentucky income tax rate for 2026?
The Kentucky individual income tax rate is 3.5% for the 2026 tax year, down from 4% in 2025. House Bill 1, signed February 6, 2025, enacted the reduction. The 3.5% rate applies to taxable income earned during the full 2026 calendar year.
How much is Kentucky income tax on $75,000?
A Single filer earning $75,000 in wages pays an estimated $2,507 in Kentucky state income tax for 2026. Subtracting the $3,360 state standard deduction leaves $71,640 of taxable income. Applying the 3.5% rate produces $2,507.40 before rounding, or a 3.34% effective tax rate. This assumes full-year residency, no dependents, and a taxpayer under age 65 who is not blind or claimed as a dependent. Other deductions, income adjustments, credits, and local taxes are excluded.
How much is Kentucky income tax on $100,000?
A Single filer earning $100,000 in wages pays an estimated $3,382 in Kentucky state income tax for 2026. Subtracting the $3,360 state standard deduction leaves $96,640 of taxable income. Applying the 3.5% rate produces $3,382.40 before rounding, or a 3.38% effective tax rate. This assumes full-year residency, no dependents, and a taxpayer under age 65 who is not blind or claimed as a dependent. Other deductions, income adjustments, credits, and local taxes are excluded.
What is the Kentucky marginal tax rate?
The Kentucky statutory marginal income tax rate is 3.5% for 2026. Each additional dollar of Kentucky taxable income is taxed at 3.5% before credits. Both Single and Married Filing Jointly use the same marginal rate. Local occupational taxes may also apply to wages.
What is the Kentucky effective tax rate?
The Kentucky effective income tax rate is state income tax divided by household income, expressed as a percentage. Our 2026 examples produce a 3.34% effective rate for both the Single filer earning $75,000 and the married household earning $150,000. The married example uses separate-spouse calculations on a combined Kentucky return, with each spouse earning $75,000 and claiming a $3,360 standard deduction. These are example results, not effective rates that apply to every Kentucky household.
Does Kentucky have a standard deduction?
Yes. Kentucky's standard deduction is $3,360 for 2026, increased from $3,270 for 2025. The state adjusts the amount annually for inflation. A Single return and a regular Kentucky joint return each receive one $3,360 deduction. When married spouses calculate separately on a combined Kentucky return, each may claim the $3,360 standard deduction. If one spouse itemizes, the other must also itemize.
Does Kentucky have a personal exemption?
No. Kentucky does not provide a general personal exemption deduction for the taxpayer or spouse for 2026. The former $10 personal tax credit was eliminated beginning in 2018. Separate personal credits remain, including $40 for a qualifying individual age 65 or older and $40 for a qualifying individual who is legally blind. A person who meets both conditions may qualify for $80. These credits reduce tax owed rather than taxable income.
Does Kentucky have a dependent exemption?
No. Kentucky does not provide a general dependent exemption deduction for 2026. The former $10 tax credit for each dependent was eliminated beginning in 2018. A separate Family Size Tax Credit may reduce tax for eligible lower-income households. That credit depends on modified gross income and qualifying family size rather than providing a fixed deduction for each dependent.
Does Kentucky have a Child Tax Credit?
No. Kentucky does not have a state Child Tax Credit for 2026. Eligible families may still claim the federal Child Tax Credit on their federal return.
Kentucky separately offers a nonrefundable Child and Dependent Care Credit equal to 20% of the allowed federal credit for qualifying care expenses. This credit concerns care needed for work, rather than providing a credit simply for having a qualifying child.
Does Kentucky have an Earned Income Tax Credit?
No. Kentucky does not have a state Earned Income Tax Credit for 2026. Eligible Kentucky residents may still claim the federal Earned Income Tax Credit on their federal return. Kentucky's separate Family Size Tax Credit has its own eligibility rules and is not a percentage of the federal EITC.
What is Kentucky's Family Size Tax Credit?
Kentucky's Family Size Tax Credit reduces state income tax for qualifying lower-income households, including single people without children. It can offset up to 100% of state income tax, with the percentage decreasing as modified gross income rises. Income limits depend on family size, counting the taxpayer, spouse when applicable, and qualifying children, up to a maximum family size of four. The credit is nonrefundable, so it cannot reduce tax below zero. Neither the $75,000 Single example nor the $150,000 married example qualifies.
Does the Kentucky income tax rate include local taxes?
No. The 3.5% rate covers Kentucky state income tax only for 2026. Cities and counties may impose separate occupational taxes on wages earned within their boundaries. These taxes generally apply to gross wages, without subtracting the Kentucky standard deduction. In Louisville/Jefferson County, the combined occupational tax rate is 2.2% for residents and 1.45% for nonresidents in 2026. Local rates and rules vary by location.
For example, a Louisville/Jefferson County resident earning $75,000 in wages entirely within the county would owe $1,650 in occupational tax ($75,000 × 2.2%). A married household with both spouses living and working there and earning $150,000 combined would owe $3,300 ($150,000 × 2.2%). These amounts are in addition to Kentucky state income tax.
Does Kentucky have a marriage penalty?
Yes, a regular Kentucky joint return can produce a marriage penalty because it allows only one standard deduction. With each spouse earning $75,000 in our 2026 wage scenario, that method produces $5,132.40 in state tax. This is $117.60 more than the combined $5,014.80 tax of two single filers earning $75,000 each.
Our married example instead calculates each spouse's tax separately on a combined Kentucky return, allowing each spouse a $3,360 standard deduction. The resulting $5,014.80 household tax equals the combined tax of the two single filers before rounding. This filing method produces no Kentucky marriage penalty under our equal-wage assumptions.
Can married couples file separately in Kentucky after filing jointly for federal taxes?
Yes. When both spouses have income, Kentucky allows them to file separately on a combined state return even if they file a joint federal return. Each spouse reports income and deductions in a separate column on Form 740. For 2026, each spouse using the standard deduction may subtract $3,360 in their own calculation. This differs from a joint Kentucky return, which combines both incomes and allows only one $3,360 deduction. If one spouse itemizes deductions, the other must also itemize.
References:
- 2026 Form 740-ES, Estimated Tax Instructions and Worksheet (PDF). Kentucky Department of Revenue. The document is for 2026 despite the prior-year filename. Its worksheet uses the 3.5% rate and $3,360 standard deduction. The included Family Size Tax Credit table is for 2025, so the 2026 handbook below supplies the current credit thresholds. Retrieved October 15, 2026.
- Kentucky DOR Announces 2026 Standard Deduction and KRS 141.081: Standard Deduction. Kentucky Department of Revenue and Kentucky General Assembly. Confirms the increase from $3,270 to $3,360 and the statutory annual inflation adjustment. Retrieved October 15, 2026.
- House Bill 1, 2025 Regular Session and KRS 141.020: Individual Income Tax Rates and Credits. Kentucky General Assembly. Confirms the February 6, 2025 enactment and the 3.5% rate beginning in 2026. The statute supports the 2005-2026 bracket and rate history, conditions for future reductions, and personal tax credit rules. Retrieved October 15, 2026.
- Tax Year 2026 Publication 1345, Handbook for Electronic Filers (PDF) and KRS 141.066: Family Size Tax Credit. Kentucky Department of Revenue and Kentucky General Assembly. The 2026 handbook confirms the rate, deduction, April 15, 2027 deadline, and credit thresholds. The statute defines qualifying family size, the declining credit percentages, nonrefundability, and combined-income treatment for married couples. Retrieved October 15, 2026.
- 2025 Form 740 Instructions (PDF) and KRS 141.180: Individual Returns and Married Filing Options. Kentucky Department of Revenue and Kentucky General Assembly. The linked packet currently covers tax year 2025. Printed pages 10-11 explain the state filing options, one standard deduction per separate-spouse calculation, and the requirement for both spouses to itemize if one does. These filing procedures are paired with the separately confirmed 2026 rate and deduction. Retrieved October 15, 2026.
- KRS 141.019: Adjustments to Federal Adjusted Gross Income. Kentucky General Assembly. Establishes the federal AGI starting point and disallows federal personal exemptions and qualified tips and overtime deductions. Retrieved October 15, 2026.
- Tax Year 2018 Publication 1345, Handbook for Electronic Filers (PDF). Kentucky Department of Revenue. Documents the transition to a flat 5% rate and elimination of the general $10 personal and dependent tax credits beginning in 2018. Retrieved October 15, 2026.
- Individual Income Tax: Common Kentucky Credits and KRS 141.067: Household and Dependent Care Service Credit. Kentucky Department of Revenue and Kentucky General Assembly. Explains the nonrefundable Child and Dependent Care Credit equal to 20% of the allowed federal credit, separate from the Child Tax Credit. The agency also describes personal and Family Size Tax Credits and directs taxpayers to the IRS for federal EITC guidance. Its displayed Family Size Tax Credit income limit is for 2025. Retrieved October 15, 2026.
- Child Tax Credit and Earned Income Tax Credit (EITC). Internal Revenue Service. Explains the federal credits referenced in the FAQs. Eligibility for these federal benefits is separate from Kentucky's state credit rules. Retrieved October 15, 2026.
- W-1 Tax Form Instructions. Louisville Metro Revenue Commission. Explains the gross-wage base for work performed in Louisville/Jefferson County and the combined occupational tax rates of 2.2% for residents and 1.45% for nonresidents. Rates checked October 15, 2026.
- Kentucky County (Local) Income Tax Withholding, 2026. U.S. Department of Agriculture, National Finance Center, March 3, 2026. Supplementary federal payroll guidance with a table of selected Kentucky county withholding rates. The Louisville Metro Revenue Commission source above supports the local rates used on this page. Retrieved October 15, 2026.