Kentucky State Tax Calculator 2026
Estimate your Kentucky state income tax and take-home pay for tax year 2026.
Last updated: November 2025 · Source
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Kentucky 2026 tax overview
Flat 3.5% for 2026 (down from 4.0% in 2025).
Breakdown
Kentucky income tax brackets, 2026
Kentucky charges one rate on all taxable income. Figures are for single filers unless the state uses one schedule for all statuses.
| Taxable income | Rate | Tax on this bracket |
|---|---|---|
| Over $0 | 3.50% | 3.50% of everything above $0 |
Brackets apply to income after the Kentucky standard deduction of $3,360 single and $3,360 married filing jointly, which is separate from the federal standard deduction.
What this calculator does not include
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 and are not modelled here.
Frequently Asked Questions
What are the 2026 Kentucky income tax rates?
Kentucky charges a flat 3.50% on taxable income for 2026. Flat 3.5% for 2026 (down from 4.0% in 2025).
At what income does the top Kentucky tax rate start?
Kentucky has a single rate, so it applies from the first dollar of taxable income above the standard deduction. There is no higher bracket to reach.
What is the 2026 Kentucky standard deduction?
Kentucky allows a state standard deduction of $3,360 for single filers and $3,360 for married filing jointly in 2026. This is separate from the federal standard deduction, which is $16,100 and $32,200 respectively.
Are there local income taxes in Kentucky?
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 and are not modelled here.
Does Kentucky have tax reciprocity with neighbouring states?
Yes. Kentucky has reciprocal agreements with Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia, Wisconsin. If you live in one of those states and work in Kentucky, you file and pay only where you live, and you give your employer the relevant non-residence certificate so Kentucky tax is not withheld. Without that form the tax is withheld anyway and you have to file a Kentucky return to get it back.
Does Kentucky tax Social Security and retirement income?
Kentucky does not tax Social Security and exempts up to $31,110 per person of pension and retirement income.
What surprises people most about Kentucky income tax?
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.