What is Kentucky's income tax rate for 2026?
Kentucky applies a flat 3.5% income tax rate to all wages in 2026, after subtracting a $3,360 standard deduction. This rate applies equally regardless of income level or filing status.
Kentucky state income tax estimate
Kentucky Income Tax Calculator
Calculate Kentucky state income tax for 2026 using the 3.5% flat rate and $3,360 standard deduction — see how state tax fits into your full paycheck.
How much is Kentucky state income tax?
Kentucky charges a flat 3.5% state income tax on all wages in 2026, applied after a $3,360 standard deduction — so on a $60,000 salary the Kentucky state tax is about the amount shown below, regardless of filing status. This is separate from federal income tax, FICA, and any local occupational tax.
$60,000 salary$60,000
Federal income tax−$5,162
Kentucky state tax (3.5%)−$1,982
FICA (Social Security + Medicare)−$4,590
Take-home (before local tax)$48,266
Per month · per week$4,022 · $928.19
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Kentucky · 2026 tax year · salaried or hourly
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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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Key points
Kentucky's 3.5% flat rate for 2026 is one of the lowest flat individual income tax rates in the country.
Kentucky lowered its rate from 4.0% (2025) to 3.5% (2026) — saving the average worker $200–$350 per year.
The $3,360 standard deduction is applied automatically; you do not need to itemize to receive it.
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What to check
1Enter your gross pay and pay frequency to see the annualized Kentucky state tax estimate.
2The Kentucky State Tax line already applies the $3,360 deduction and the 3.5% rate.
3Add local occupational tax and FICA to see your total Kentucky paycheck tax picture.
Common questions
Is Kentucky's income tax rate going down in 2027?
Kentucky law allows further rate reductions if fiscal conditions are met. As of 2026, no additional cut has been enacted for 2027. The Kentucky Department of Revenue publishes each year's withholding formula in advance.