Kentucky Tax Rates
- Income Tax: 5% for all personal income. Capital gains are taxed as regular income at the same rate.
- Sales Tax: 6% state sales tax rate. No local sales taxes are levied.
Kentucky Tax Details
- Standard Deduction: Available for taxpayers who do not itemize deductions in their income tax payments.
- Tax Types: Include consumers use, rental tax, sales tax, sellers use, lodgings tax, and more.
Kentucky Tax Calculation
- Estimate your Kentucky State Tax and Federal Tax by selecting the tax year, filing status, income, and expenses.
- Enter specific information into tabs for a detailed Kentucky tax calculation, including local/County taxes.
Kentucky Tax Comparison
- Income Tax: Flat rate of 5%.
- Sales Tax: 6% statewide with no local sales taxes.
- Property Taxes: Average $1,257 annually.
- Retiree Friendly: Kentucky does not tax Social Security income.
Kentucky Tax Updates
- 2024 Tax Rules: Income tax rate remains at 5% for personal income.
- Sales tax rate continues at 6% for the state.
Kentucky Pass-Through Entities
Kentucky offers a workaround to help owners of pass-through entities bypass the federal income tax deduction limit for state and local taxes, with the owners’ tax liability imposed on the entity.