Kentucky Income Tax Calculator
Calculate your total tax burden in Kentucky. See KY state income tax (4% top rate), federal tax, and FICA combined. Free, instant, private.
The state of Kentucky uses a flat 4% state income tax on all taxable income in 2026. State standard deduction: $3,160 single / $6,320 married. Plus federal income tax (10%-37% across 7 brackets) and FICA (Social Security 6.2%, Medicare 1.45%). Property tax averages 0.8% and sales tax averages 6%. Flat 4% (reduced from 5%). Inheritance tax (4-16%). Pension exclusion up to $31,110.
Kentucky Income Tax Calculator
Pre-filled with Kentucky median: $55,573
Your Total Tax Burden
$10,978
Take-Home: $44,595 · Effective Rate: 19.8%
Federal Tax
$4,630
8.3% eff.
KY State Tax
$2,097
3.8% eff.
FICA
$4,251
7.6% eff.
Take-Home
$44,595
80.2% kept
Tax Breakdown
Kentucky Tax Bracket Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $55,573.00 | $4,631.08 |
| Federal Income Tax | -$4,630.26 | -$385.86 |
| Kentucky State Tax | -$2,096.52 | -$174.71 |
| Social Security (6.2%) | -$3,445.53 | -$287.13 |
| Medicare (1.45%) | -$805.81 | -$67.15 |
| Take-Home Pay | $44,594.89 | $3,716.24 |
Marginal Tax Rate
4%
KY state only
Effective Tax Rate
19.8%
All taxes combined
Kentucky Tax System Overview
Kentucky has a flat 4% income tax, reduced from 5% in 2023. The state has an inheritance tax of 4% to 16% on non-immediate family. Property taxes are moderate at 0.80%. Sales tax is a uniform 6%.
Top Income Tax
4%
Property Tax
0.8%
Sales Tax (Avg)
6%
Median Income
$55,573
Other Taxes in Kentucky
Capital Gains Tax
Taxed as regular income at 4%
Property Tax
Average effective rate of 0.8%. On a $300,000 home, this equals approximately $2,400 per year, or $200 per month.
Sales Tax
State rate of 6%, with a combined average of 6% including local taxes.
Estate & Inheritance Tax
Kentucky has an inheritance tax. The rate depends on the beneficiary's relationship to the deceased.
Filing Tips for Kentucky
Flat 4% simplifies planning. Be aware of inheritance tax for non-immediate family. Kentucky offers pension exclusions up to $31,110. Standard deduction is low ($3,160).
- Maximize pre-tax contributions to 401(k) ($23,500 limit in 2026, $31,000 if 50+) to reduce both federal and KY state taxable income.
- Use an HSA if you have a high-deductible health plan. Contributions ($4,400 individual, $8,750 family) are pre-tax and reduce your tax burden.
- Review your W-4. If you regularly get large refunds, adjust your withholding to keep more money in each paycheck throughout the year.
Compare Kentucky to Nearby States
If you lived in a neighboring state instead, here is how your state tax would change on $55,573 income:
| State | Top Rate | State Tax | Difference |
|---|---|---|---|
| Kentucky | 4% | $2,097 | — |
| Illinois | 4.95% | $2,751 | +$654 |
| Indiana | 3.05% | $1,695 | Save $402 |
| Ohio | 3.5% | $812 | Save $1,285 |
| West Virginia | 5.12% | $1,975 | Save $122 |
Explore All 50 State Tax Calculators
Compare income tax rates, property taxes, and sales taxes across all US states and DC.
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Frequently Asked Questions
What is the income tax rate in Kentucky?
Kentucky has a flat income tax rate of 4%. This means all taxable income is taxed at the same rate regardless of how much you earn. Flat 4% (reduced from 5%). Inheritance tax (4-16%). Pension exclusion up to $31,110.
How much state tax will I pay in Kentucky on $55,573?
On income of $55,573 filing single in Kentucky, you would pay approximately $2,097 in state income tax (effective rate of 3.8%). This is after the state standard deduction of $3,160.
Does Kentucky tax capital gains?
Taxed as regular income at 4%. Capital gains treatment varies by state — some tax them as regular income while others offer exclusions or preferential rates.
How does Kentucky compare to neighboring states for taxes?
Kentucky's neighboring states include Illinois (4.95% top rate), Indiana (3.05% top rate), Ohio (3.5% top rate). Property tax rates, sales taxes, and cost of living should also be considered when comparing overall tax burden. Use the calculator above to compare your specific tax liability across states.
What is the Kentucky state income tax filing deadline for 2026?
Kentucky state income tax returns are due April 15, 2026 (matching the federal deadline). If April 15 falls on a weekend or holiday, the deadline shifts to the next business day. Extensions: Kentucky typically grants automatic 6-month extensions to October 15, 2026, but tax owed must still be paid by April 15 to avoid penalties.
Does Kentucky tax retirement income, Social Security, and pensions?
Kentucky taxes retirement income with state-specific exclusions. Social Security: only 11 states tax SS benefits in 2026 (CO, CT, KS, MN, MT, NM, RI, UT, VT, WV, MO partially); Kentucky's treatment varies. Pensions and 401(k)/IRA withdrawals are generally taxable as ordinary income at 4% top rate, with possible exclusions for federal/military pensions or low-income seniors. Check Kentucky's 2026 retirement income exclusion thresholds.
What deductions and credits are unique to Kentucky in 2026?
Kentucky offers standard deduction of $3,160 (single) / $6,320 (married). Additional state-specific items typically include: Kentucky-specific tax credits (e.g., property tax credit, education credit, EITC supplement if available), retirement income exclusions, and state-conformity to federal deductions like SALT cap, mortgage interest, charitable contributions. Check Kentucky's state tax form for the full list of state-specific credits in 2026.
If I work remotely in Kentucky for an out-of-state employer, what tax do I pay?
As a Kentucky resident working remotely for an out-of-state employer, the rules depend on reciprocity agreements. Reciprocity-pair states (PA-NJ, IL-IA, MI-OH, etc.) let you pay tax only to Kentucky. Without reciprocity, you may pay tax to BOTH states, then claim a credit on Kentucky's return for taxes paid to the work state. NY, PA-Philadelphia, and other "convenience of employer" jurisdictions can override these rules. Verify your employer's state tax setup.