Does Kentucky Have Franchise Tax?

Comparison of Tax Structures: Maine vs. Kentucky

  • Maine Tax Overview

    • Maine does not have a franchise tax for LLCs.
    • Maine has an income tax that applies to LLCs based on income level.
    • Sales tax of 5.5%-6.5% applies to some goods and services.
    • Understanding small business taxes is the first step to financial transparency.
    • Property tax rates in Maine are above average.
  • Kentucky Franchise Tax Information

    • Kentucky charges businesses an annual franchise tax based on income and other factors.
    • Rates for Kentucky franchise tax are $0.095 per $100 of gross Kentucky receipts and $0.75 per $100 of Kentucky gross profits.
    • Partial exemption for businesses with gross receipts under $3 million, phasing out up to $6 million.

Comparison of Sales Tax and Property Tax

  • Sales Tax Comparison

    • Sales tax in Maine of 5.5%-6.5% applies to goods like furniture, appliances, vehicles.
    • Groceries, medicine, and gasoline are exempt from sales tax.
  • Property Tax Rates

    • Average property tax rate in Maine is 1.30% compared to the national average of 1.07%.
    • Typical resident pays $2,597 per year in property taxes.

Tax Comparison: Maine and Kentucky

  • Maine Tax Scenario

    • Maine does not have a franchise or privilege tax.
    • Understanding small business taxes is essential.
  • Kentucky Tax Scenario

    • Kentucky charges an annual franchise tax based on income and other factors.
    • Partial exemptions are available for certain businesses based on gross receipts.

Tax Burden and Goods Subject to Sales Tax in Maine

  • Tax Burden

    • Maine ranked 4th highest for state taxes as a percentage of income.
    • Property tax rates in Maine are above the national average.
  • Goods Subject to Sales Tax

    • Taxable goods in Maine include furniture, home appliances, and motor vehicles.
    • Groceries, prescription medicine, and gasoline are tax-exempt in Maine.

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