Paducah, Kentucky withholds a 2.00% local occupational (payroll) tax on wages earned in the city — $20.00 out of every $1,000 you earn. McCracken County levies its own 1.00% fee, but only outside the city limits, so working in Paducah you owe the city rate and not both.
Paducah Paycheck Calculator
Estimate your Paducah, Kentucky take-home pay for 2026 — after the 2.00% local occupational tax, federal income tax, the 3.5% state flat tax, Social Security, and Medicare.
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Kentucky · 2026 tax year · salaried or hourly
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What is the local tax rate in Paducah, Kentucky?
Paducah levies a 2.00% occupational (payroll) tax on wages earned in the city, which sits in McCracken County. The calculator above shows your real Paducah take-home pay after that local tax, federal withholding, Kentucky's 3.5% flat tax, and FICA.
Paducah withholds 2.00% on wages earned inside the city. McCracken County's separate 1.00% fee applies to employees working in the county but outside the Paducah city limits, so the two are not added together.
To compare it against every other Kentucky jurisdiction, see the full Kentucky occupational tax rates by city and county.
Rate verified August 27, 2026 against City of Paducah Business License and Payroll Tax — in effect since January 1, 2026.
Quick facts
- Paducah's 2.00% occupational tax is withheld on wages earned inside the city, no matter where you live.
- On a $2,000 paycheck the local tax alone is $40.00 — before federal, state, and FICA.
- McCracken County's 1.00% fee covers work done outside Paducah, so it is not added to the city rate.
Frequently asked questions
Paducah, Kentucky withholds a 2.00% local occupational (payroll) tax on wages earned in the city — $20.00 out of every $1,000 you earn. McCracken County levies its own 1.00% fee, but only outside the city limits, so working in Paducah you owe the city rate and not both.
Paducah withholds 2.00% of your gross wages for the local occupational tax — about $20.00 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 2.00% Paducah occupational tax is based on where you work, not where you live. If you earn wages in Paducah (McCracken County), it is generally withheld even if you live in another city or county. If you live in Paducah but work elsewhere, you usually owe that other jurisdiction's rate instead.
A Paducah 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 Paducah's 2.00% occupational tax. Enter your pay above to see all four broken out line by line.
No. Paducah withholds 2.00% on wages earned inside the city. McCracken County's separate 1.00% fee applies to employees working in the county but outside the Paducah city limits, so the two are not added together. Working in Paducah you pay the city's 2.00% and nothing to McCracken County, so the two rates should not be added together — the combined 2.00% + 1.00% figure some calculators show is not a rate anyone actually owes.
Kentucky paycheck calculators by city
Compare take-home pay in another Kentucky city, or run the statewide calculator:
- Kentucky (statewide) Paycheck Calculator
- Louisville Paycheck Calculator — 2.20% local tax
- Lexington Paycheck Calculator — 2.25% local tax
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- Danville Paycheck Calculator — 1.90% local tax