Kentucky Income Tax Calculator

Estimate your Kentucky income tax burden

Updated for 2024 tax year on Dec 19, 2024

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How to calculate your Kentucky income taxes

Understanding your 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

1. Work out your total federal income tax
   1. Gross income adjusted
      Gross income − Pre-tax deductions = Gross income adjusted
   2. Federal taxable income
      Gross income adjusted − Federal standard/itemized deductions = Federal taxable income
   3. Federal income tax liability
      Federal taxable income × Federal income tax rate = Federal income tax liability
   4. Federal payroll tax liability
      Gross income × Federal payroll tax rate = Federal payroll tax liability
2. Calculate your total Kentucky state income tax
   1. Kentucky state taxable income
      Gross income adjusted − Kentucky state standard/itemized deductions = Kentucky state taxable income
   2. Kentucky state income tax liability
      Kentucky state taxable income × Kentucky state income tax rate = Kentucky state income tax liability
3. Add up all the taxes
   Federal income tax liability + Federal payroll tax liability + Kentucky state income tax liability = Your total income tax liability

State income tax brackets

Refer to Tax Foundation for more details.

State standard deduction

FAQs