Kentucky Hourly Paycheck Calculator 2026 – Take-Home Pay

In addition to the standard 40-hour overtime requirement, Kentucky has a special statutory provision that many workers and employers overlook:

• KRS 337.050 (Seventh-Day Law): Any employee who is required or permitted to work all seven consecutive calendar days in a defined workweek must be paid at time-and-a-half (1.5x) for all hours worked on the seventh day.
• Independent of 40 Hours: Even if a worker only worked 5 hours each day (totaling 35 hours by day 7), the entire shift on day 7 must be compensated at overtime rates under Kentucky state statute.
• Exemptions: Does not apply to professional, executive, administrative personnel, agricultural workers, or employers who grant employees at least one full day of rest every week on average.

A widespread belief among Kentucky workers is that picking up overtime pushes you into a "higher bracket that takes all your extra money." Here is how payroll taxes actually treat overtime:

• Kentucky State Tax is Flat: Kentucky charges a flat 3.5% on taxable income in 2026. Every overtime dollar is taxed at the exact same 3.5% rate as your regular pay.
• Progressive Federal Brackets: Federal income tax brackets are marginal. Moving into a higher bracket only applies the higher percentage to the dollars earned above that threshold, never your entire check.
• Temporary Withholding Spike: Automated payroll software annualizes each paycheck. An unusually large overtime check is withheld as if you earn that rate all 52 weeks of the year. Any excess withholding is refunded to you when you file your tax return in the spring.