Kentucky Income Tax Calculator

Estimate your Kentucky income tax burden

Updated for 2023 tax year on Jul 18, 2023

Income tax calculators by state

Kentucky state taxes

Kentucky income taxes

In Kentucky, taxpayers experience a streamlined process, as the state employs a flat income tax rate of 5%. This means that regardless of income level, taxpayers owe the same percentage of their income to the state.

The state payroll tax, largely for unemployment insurance, varies between 0.3% and 9%. This rate fluctuates based on the employer’s experience rating, which is influenced by the number of former employees who have claimed unemployment benefits.

Kentucky offers a standard deduction for all taxpayers.

Calculate your income tax in Kentucky

Calculating your Kentucky state income tax is similar to the steps we listed on our Federal income tax calculator:

1. Determine your filing status
2. Work out your adjusted gross income [Gross income − Retirement contributions = Adjusted gross income]
3. Calculate your state taxable income [Adjusted gross income − Standard/Itemized deductions = State taxable income]
4. Figure out your state/local tax liability [State taxable income × State tax rate = State tax liability]

State income tax brackets

Refer to Tax Foundation for more details.

State standard deduction

Kentucky sales tax

Kentucky levies a statewide sales tax of 6%.

Kentucky property tax

The property tax in Kentucky averages 0.86% of a home’s assessed value.

Kentucky capital gains tax

In Kentucky, capital gains are treated as regular income for tax purposes. Consequently, they’re subject to the flat state income tax rate of 5%.

Kentucky gas tax

The Bluegrass State charges a gas tax of 26 cents per gallon.

Kentucky tobacco tax

Kentucky charges a tax of $1.10 per pack of 20 cigarettes.

Kentucky insurance tax

The insurance premium tax in Kentucky varies between 0.75% to 2.5%, depending on the type of insurance.

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