Kentucky Paycheck Calculator

Calculate your take-home pay per paycheck for salary and hourly jobs after federal & Kentucky taxes

Updated for 2025 tax year on Feb 14, 2025

Calculate your paycheck in these states

How to calculate your Kentucky paycheck

Overview of Kentucky

Kentucky has a population of over 4 million (2019) and is known for horse racing, moonshine, and Kentucky Fried Chicken.

Brief summary:

• the income tax is a flat rate of 4%
• has local income tax called “Occupational license tax”
• has state-level standard deduction
• no state-level exemptions

Understanding your Kentucky paycheck

Every time you receive your paycheck, you may wonder, “Where does all my money go?” Understanding your Kentucky paycheck is essential to managing your finances effectively. Let’s look at the components that make up your paycheck.

First, let’s talk about federal income taxes and FICA taxes. The federal government imposes income tax on your earnings, which is determined by your annual income and filing status. FICA taxes, including Social Security and Medicare taxes, are deducted from your paycheck to fund these federal programs. Both employers and employees contribute to these taxes, with self-employed individuals paying both the employer and employee portions.

The Form W-4 plays a crucial role in determining how much federal income tax is withheld from your paycheck. When you start a new job or have significant life changes, it’s essential to fill out a new Form W-4 to ensure the appropriate amount of tax is withheld. Additionally, your pay frequency (weekly, bi-weekly, or monthly) can also impact the size of your paycheck.

Your marital status and pre-tax deductions also affect your paycheck. Pre-tax deductions, such as health insurance premiums, retirement contributions, and flexible spending accounts, can lower your taxable income. This will result in less federal income tax withheld from your paycheck.

In Kentucky, the income tax is a flat rate of 5%. There is no state payroll tax or local income tax. The state imposes a flat tax rate on all taxable income. While there is a state standard deduction in Kentucky, personal exemptions are not available.

Finally, post-tax deductions are taken from your paycheck after taxes have been calculated. These deductions may include life insurance premiums, union dues, or charitable contributions. Keeping track of your post-tax deductions can help you better understand your overall financial picture.

Calculate your Kentucky paycheck

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

1. Determine your gross income
   • Annual salary
     Annual salary = Gross income
   • Hourly wage
     Hourly wage × Hours worked per day × Days worked per week × Weeks worked per year = Your weekly paycheck
2. 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
3. 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
4. Derive your Kentucky local income tax liability
   (Gross income adjusted or Kentucky state taxable income) × Kentucky local income tax rate = Kentucky local income tax liability
5. Figure out your net pay
   You need to account for any other deductions such as health insurance, 401(k) contribution, as well as additional withholdings.
   Gross income − (Total income tax liability + Total payroll tax liability + Total pre-tax deductions + Total post-tax deductions + Total withholdings) = Your net pay
6. Divide your net pay by your pay frequency
   
   • Daily
     Your net pay / Days worked per week / Weeks worked per year = Your daily paycheck
   • Weekly
     Your net pay / 52 = Your weekly paycheck
   • Bi-weekly
     Your net pay / 26 = Your bi-weekly paycheck
   • Semi-monthly
     Your net pay / 24 = Your semi-monthly paycheck
   • Monthly
     Your net pay / 12 = Your monthly paycheck
   • Quarterly
     Your net pay / 4 = Your quarterly paycheck
   • Semi-annual
     Your net pay / 2 = Your semi-annual paycheck
   • Annual
     Your net pay = Your annual paycheck

State income tax brackets

Refer to Tax Foundation for more details.

Local income tax

Based on gross income, applies to both residents and non-residents.

State standard deduction

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