Does Kentucky have a separate bonus tax rate?
Kentucky generally treats a bonus as taxable wages under the same state withholding system. Federal supplemental wage withholding can make the paycheck look different from regular wages.
Bonus and supplemental wage withholding
Kentucky Bonus Tax Calculator
Estimate how a Kentucky bonus changes take-home pay after federal supplemental withholding, Kentucky tax, FICA, and local occupational tax.
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Kentucky · 2026 tax year · salaried or hourly
How much and how often you’re paid.
How are you paid?
Gross pay method
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Use flat 22% federal supplemental rate?
The IRS allows employers to withhold federal income tax from bonuses / supplemental wages at a flat 22% rate.
Required for accurate Social Security and Medicare surtax estimates mid-year.
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Updates as you type
Key points
Bonuses are supplemental wages, but they are still wages for Kentucky and FICA purposes.
Local occupational tax can apply to a bonus if the bonus is tied to work performed in that jurisdiction.
Federal withholding on bonuses may differ from your regular paycheck even when the final annual tax is reconciled on your return.
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What to check
1Enter your regular paycheck details first if the bonus will be paid with normal wages.
2Add the bonus as extra earnings for the same pay period, or run it as a separate gross paycheck.
3Compare take-home pay before and after the bonus to see the incremental tax impact.
Common questions
Are bonuses subject to local occupational tax?
They can be. If the bonus is compensation for work in a Kentucky city or county with an occupational tax, payroll may withhold the local rate on that supplemental wage.