Covington Paycheck Calculator

Covington, Kentucky withholds a 2.45% local occupational (payroll) tax on wages earned in the city — $24.50 out of every $1,000 you earn, and Kenton County adds a separate 0.6997% on the same wages, for 3.1497% of local tax in total. Withholding stops once you pass $184,500 of wages for the year, capping the city tax at $4,520.25.

Covington withholds 2.45% of your gross wages for the local occupational tax — about $24.50 on every $1,000 of pay. It is withheld on gross wages, before federal income tax, Kentucky's 3.5% flat state tax, and FICA (Social Security and Medicare) are applied.

The 2.45% Covington occupational tax is based on where you work, not where you live. If you earn wages in Covington (Kenton County), it is generally withheld even if you live in another city or county. If you live in Covington but work elsewhere, you usually owe that other jurisdiction's rate instead.

A Covington paycheck is reduced by four layers: federal income tax (progressive brackets), Kentucky's 3.5% flat state tax after the $3,360 standard deduction, FICA at 6.2% Social Security plus 1.45% Medicare, and Covington's 2.45% occupational tax. Enter your pay above to see all four broken out line by line.

Yes. Covington caps withholding at the $184,500 wage base, so the city tax stops at $4,520.25 a year. Kenton County levies a separate 0.6997% fee on the same wage base, capped at $1,290.95, and it applies in addition to the city fee — someone working in Covington pays both. That is why the total local burden (3.1497%) is higher than the 2.45% city rate on its own.

Yes. Covington stops withholding the occupational tax once your wages for the year pass $184,500, which caps the city tax at $4,520.25 a year. Most Kentucky cities do not cap this fee — Covington is an exception, and most paycheck calculators ignore the cap entirely.