Taxes in Louisville, Kentucky
Complete tax guide for Louisville, KY. State income tax up to 4%, 0.83% property tax, 6% sales tax. Calculate your total tax burden.
State Income Tax
4%
Kentucky
Property Tax
0.83%
Effective rate
Sales Tax
6%
Combined rate
Tax Burden
Low
Louisville, KY Tax Overview
Louisville/Jefferson County occupational tax of 2.2% on wages
Population
633,045
Median Income
$53,866
Cost of Living
89.5 (100 = avg)
State Income Tax
4%
Local Income Tax
2.2%
Median Home Price
$195,000
Louisville Tax Calculator
Pre-filled with Louisville median: $53,866
Total Tax Burden in Louisville
$11,886
Take-Home: $41,980 · Effective Rate: 22.07%
Federal Tax
$4,425
8.22% eff.
KY State + Local
$3,340
6.20% eff.
FICA
$4,121
7.65% eff.
Take-Home
$41,980
77.93% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $53,866.00 | $4,488.83 |
| Federal Income Tax | -$4,425.42 | -$368.79 |
| Kentucky State Tax | -$2,154.64 | -$179.55 |
| Louisville Local Tax (2.2%) | -$1,185.05 | -$98.75 |
| Social Security (6.2%) | -$3,339.69 | -$278.31 |
| Medicare (1.45%) | -$781.06 | -$65.09 |
| Take-Home Pay | $41,980.14 | $3,498.34 |
Property Tax in Louisville
Median Home
$195,000
Annual Tax
$1,619
Monthly Tax
$135
Effective Rate
0.83%
Sales Tax in Louisville
Combined Rate
6%
State Portion
~3.5%
Local Portion
~2.5%
The combined sales tax rate in Louisville 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 | Louisville | Kentucky Avg | National Avg |
|---|---|---|---|
| Income Tax | 4% + 2.2% | 4% | 4.6% |
| Property Tax | 0.83% | ~0.83% | 1.1% |
| Sales Tax | 6% | ~6% | 7.12% |
| Overall Burden | Low | — | Moderate |
Tax Saving Tips for Louisville 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.
- Louisville has a local income tax of 2.2%. 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 Louisville (0.83%) 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 Louisville, KY?
Louisville, Kentucky has a state income tax rate up to 4%, plus a local income tax of 2.2%. The property tax rate is 0.83% and the combined sales tax rate is 6%. Louisville/Jefferson County occupational tax of 2.2% on wages
How much is property tax in Louisville?
The effective property tax rate in Louisville is 0.83%. On the median home price of $195,000, this equals approximately $1,619 per year or $135 per month. This is below the national average of 1.1%.
What is the sales tax rate in Louisville?
The combined sales tax rate in Louisville is 6%, which includes both state and local components. This is below the national average combined rate of approximately 7.12%.
How does Louisville's tax burden compare to other cities?
Louisville has a low overall tax burden. The effective total tax rate for a median-income household is approximately 26.6%. The combination of 4% state income tax, 0.83% property tax, and 6% sales tax determines the total burden. Cost of living index is 89.5 (100 = national average).
Are there any local taxes in Louisville?
Yes. Louisville imposes a local income tax of 2.2% in addition to the state income tax of 4%. Louisville/Jefferson County occupational tax of 2.2% on wages