Filing and paying Kentucky income tax
- Return
- Form 740 for full-year residents.
- Withholding
- Kentucky uses Form K-4. There are no allowances: every employee is withheld at 3.5% after the $3,360 standard deduction.
To see how Kentucky sits against every other state on top rate, bracket count and standard deduction, see state income tax rates for 2026 — all 51 jurisdictions in one sortable table.
How Kentucky Income Tax Compares to Neighboring States
Total income tax (federal + state) on a $100,000 annual salary in 2026, single filer using the standard deduction:
| State | State Tax | Total Income Tax | vs. Kentucky |
|---|---|---|---|
| Kentucky (here) | $3,382 | $16,552 | — |
| Indiana | $2,921 | $16,091 | -$462 |
| Ohio | $1,981 | $15,151 | -$1,401 |
| West Virginia | $3,691 | $16,861 | +$309 |
| Virginia | $4,936 | $18,106 | +$1,554 |
| Tennessee | $0 | $13,170 | -$3,382 |
A negative "vs." figure means that state collects less total income tax than Kentucky. Federal portion is identical across states; only state tax varies.
Frequently Asked Questions
What is the Kentucky state income tax rate for 2026?
Kentucky has a flat 3.5% state income tax rate for 2026. The rate is the same regardless of income — applied to taxable income after the standard deduction. Federal rates (10%–37%) layer on top.
How much income tax will I pay in Kentucky on a $100,000 salary?
For a single filer earning $100,000 in Kentucky in 2026, expect approximately $13,170 in federal income tax and $3,382 in Kentucky state income tax — for a total income tax of about $16,552, an effective rate of 16.6%. This excludes FICA (Social Security and Medicare), which adds roughly 7.65% on top.
What is Kentucky's income tax rate for 2026?
A flat 3.5% of taxable income, after a $3,360 standard deduction. It was 4% for 2025.
Will Kentucky cut its income tax again in 2027?
Only if the General Assembly votes for it. The law lets the rate fall when revenue and reserve conditions are met, but the Department of Revenue cannot cut it on its own.
What is the Louisville occupational tax rate?
2.2% of wages for Louisville Metro residents who work there, and 1.45% for nonresidents who work in Louisville Metro.
I live in Indiana and work in Kentucky. Do I pay Kentucky tax?
Not state income tax, if you file Form K-4 with your employer; Kentucky has reciprocity with Indiana. Local occupational taxes where you work still apply.
For the preferential federal rates on long-term gains, see the Capital Gains Tax Calculator. For the federal brackets, standard deduction, and Social Security wage base that sit underneath this state calculation, see 2026 Tax Calculators.