Taxes in Lexington, Kentucky
Complete tax guide for Lexington, KY. State income tax up to 4%, 0.79% property tax, 6% sales tax. Calculate your total tax burden.
State Income Tax
4%
Kentucky
Property Tax
0.79%
Effective rate
Sales Tax
6%
Combined rate
Tax Burden
Moderate
Lexington, KY Tax Overview
Lexington-Fayette urban county occupational tax of 2.5%
Population
322,570
Median Income
$57,467
Cost of Living
93.8 (100 = avg)
State Income Tax
4%
Local Income Tax
2.5%
Median Home Price
$235,000
Lexington Tax Calculator
Pre-filled with Lexington median: $57,467
Total Tax Burden in Lexington
$12,989
Take-Home: $44,478 · Effective Rate: 22.60%
Federal Tax
$4,858
8.45% eff.
KY State + Local
$3,735
6.50% eff.
FICA
$4,396
7.65% eff.
Take-Home
$44,478
77.40% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $57,467.00 | $4,788.92 |
| Federal Income Tax | -$4,857.54 | -$404.80 |
| Kentucky State Tax | -$2,298.68 | -$191.56 |
| Lexington Local Tax (2.5%) | -$1,436.68 | -$119.72 |
| Social Security (6.2%) | -$3,562.95 | -$296.91 |
| Medicare (1.45%) | -$833.27 | -$69.44 |
| Take-Home Pay | $44,477.88 | $3,706.49 |
Property Tax in Lexington
Median Home
$235,000
Annual Tax
$1,857
Monthly Tax
$155
Effective Rate
0.79%
Sales Tax in Lexington
Combined Rate
6%
State Portion
~3.5%
Local Portion
~2.5%
The combined sales tax rate in Lexington is 6%, which is below the national average of 7.12%. On a $100 purchase, you would pay $6.00 in sales tax.
Tax Burden Comparison
| Tax Type | Lexington | Kentucky Avg | National Avg |
|---|---|---|---|
| Income Tax | 4% + 2.5% | 4% | 4.6% |
| Property Tax | 0.79% | ~0.79% | 1.1% |
| Sales Tax | 6% | ~6% | 7.12% |
| Overall Burden | Moderate | — | Moderate |
Tax Saving Tips for Lexington Residents
- Kentucky's income tax rate of 4% is competitive. You may still benefit from maximizing 401(k) contributions ($23,500 limit) to reduce your taxable income at both state and federal levels.
- Lexington has a local income tax of 2.5%. If you work remotely, verify whether you owe city tax based on where you work or where you live. Some cities only tax people who work within city limits.
- Property tax in Lexington (0.79%) is below the national average of 1.1%. This makes homeownership more affordable here relative to property tax burden.
- Use a Health Savings Account (HSA) if eligible. Contributions are tax-deductible ($4,300 individual, $8,550 family), growth is tax-free, and withdrawals for medical expenses are tax-free.
Other Cities in Kentucky
Calculate Your Full Kentucky Tax Burden
See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Lexington, KY?
Lexington, Kentucky has a state income tax rate up to 4%, plus a local income tax of 2.5%. The property tax rate is 0.79% and the combined sales tax rate is 6%. Lexington-Fayette urban county occupational tax of 2.5%
How much is property tax in Lexington?
The effective property tax rate in Lexington is 0.79%. On the median home price of $235,000, this equals approximately $1,857 per year or $155 per month. This is below the national average of 1.1%.
What is the sales tax rate in Lexington?
The combined sales tax rate in Lexington is 6%, which includes both state and local components. This is below the national average combined rate of approximately 7.12%.
How does Lexington's tax burden compare to other cities?
Lexington has a moderate overall tax burden. The effective total tax rate for a median-income household is approximately 27.1%. The combination of 4% state income tax, 0.79% property tax, and 6% sales tax determines the total burden. Cost of living index is 93.8 (100 = national average).
Are there any local taxes in Lexington?
Yes. Lexington imposes a local income tax of 2.5% in addition to the state income tax of 4%. Lexington-Fayette urban county occupational tax of 2.5%