Kentucky Paycheck Calculator 2026
Kentucky paychecks combine the flat 3.5% state rate with occupational licence taxes levied by cities, counties and some school boards. In Louisville and Lexington these local taxes run above 2%, close to the state rate itself.
Last updated: October 2026
Pay and filing
Annual gross: $65,000
Used to stop Social Security at the $184,500 wage base and to start the extra 0.9% Medicare above $200,000 on this paycheck.
Form W-4
Step 3: $2,200 per child and $500 per other dependent, a year.
For example education or child care credits you expect to claim.
Interest, dividends or other income with no withholding.
Deductions beyond the standard deduction, including deductible IRA contributions.
Retirement and benefits
$3,900 a year, capped at the $24,500 employee limit for 2026.
Traditional contributions lower federal and most state income tax now, but not Social Security or Medicare.
Through payroll, an HSA avoids income tax and FICA. California and New Jersey still tax it.
2026 limit $3,400.
2026 limit $7,500 per household ($3,750 married filing separately).
Paycheck breakdown (biweekly)
Annual summary
Kentucky paycheck rules for 2026
| State income tax, 2026 | Flat 3.5% |
|---|---|
| Deductions before tax | standard deduction $3,360 single, $3,360 joint |
| Withholding certificate | Form K-4 |
| Bonus (supplemental) withholding | Kentucky withholds supplemental wages at the flat 3.5% rate. |
| Mandatory payroll premiums | None for employees |
| Local income taxes | Kentucky counties and cities levy occupational licence taxes on wages, typically 0.5% to 2.5%. Louisville Metro is about 2.2% and Lexington about 2.25%. These are withheld by the employer. |
| Reciprocity agreements | Yes, with Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia and Wisconsin |
| Sales tax (for context) | 6.00% state, 6.00% average combined with local (rank 38 of 51) |
Worked example: $60,000 in Kentucky
Single filer, paid every two weeks (26 paychecks), standard W-4, no 401(k) or other benefits.
| Gross pay | $2,307.69 |
| Federal income tax | -$193.08 |
| Social Security (6.2%) | -$143.08 |
| Medicare (1.45%) | -$33.46 |
| Kentucky income tax | -$76.25 |
| Take-home pay | $1,861.83 |
Kentucky take-home pay at different salaries
Single filer, paid every two weeks, standard W-4, no benefits, no local tax.
| Salary | Per paycheck | Per year | To Kentucky |
|---|---|---|---|
| $40,000 | $1,270.68 | $33,038 | $1,282 |
| $60,000 | $1,861.83 | $48,408 | $1,982 |
| $100,000 | $2,915.29 | $75,798 | $3,382 |
| $150,000 | $4,179.18 | $108,659 | $5,132 |
Living and working in Kentucky
Kentucky's state sales tax is 6.00%; with local add-ons the average combined rate is 6.00%, ranked 38 of 51 as of July 2026.
Kentucky cuts its flat rate by half a point whenever revenue triggers written into statute are met, which is why it has stepped down from 5% to 3.5% since 2023.
In retirement: Kentucky does not tax Social Security and exempts up to $31,110 per person of pension and retirement income.
Kentucky paycheck questions
How much is take-home pay on $60,000 in Kentucky?
A single filer paid $60,000 a year every two weeks, with no pre-tax benefits, takes home about $1,861.83 a paycheck in Kentucky ($48,408 a year). Each $2,307.69 paycheck loses $193.08 to federal income tax, $176.54 to Social Security and Medicare, $76.25 to Kentucky income tax. That is $1,982 a year less than the same salary in a state with no income tax or payroll premiums.
How much Kentucky income tax comes out of each paycheck?
Flat 3.5% for 2026, down from 4%. The $3,360 standard deduction is per return, not doubled for married couples filing jointly. On a $60,000 salary that works out to about $76.25 every two weeks, an effective 3.30% of gross pay.
What else does Kentucky take out of a paycheck?
Apart from income tax, Kentucky requires no other employee payroll deduction, so the remaining lines on your stub are federal income tax, Social Security, Medicare and any benefits you chose.
Are there local income taxes on Kentucky paychecks?
Yes. Kentucky counties and cities levy occupational licence taxes on wages, typically 0.5% to 2.5%. Louisville Metro is about 2.2% and Lexington about 2.25%. These are withheld by the employer. Choose your city or county in the calculator, or enter its rate under “Other”.
I live in a neighboring state. Will Kentucky tax my paycheck?
Not if you live in Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia and Wisconsin. Kentucky has reciprocal agreements with those states, so you can give your employer the state's nonresidence form and have only your home state's tax withheld. Without the form, Kentucky tax is withheld anyway and you must file a Kentucky return to get it back.
How are bonuses withheld in Kentucky?
Federally, a bonus paid separately is usually withheld at a flat 22% (37% on supplemental pay above $1 million in the year). For Kentucky: Kentucky withholds supplemental wages at the flat 3.5% rate.
Which form sets my Kentucky withholding?
Kentucky uses Form K-4 alongside the federal Form W-4. If you do not file one, your employer uses the state's default setting, usually single with no allowances or adjustments. Update it after marriage, a new child or a second job.
More for Kentucky
- Kentucky income tax calculator for the full year
- Paycheck calculator for all states
- Bonus tax calculator