Calculate Kentucky local city and county net profits tax on sole proprietorships, partnerships, and LLCs.
Kentucky · 2026 tax year · salaried or hourly
How much and how often you’re paid.
Kentucky cities and counties charge a business license fee based on a percentage of net business profits.
This tax is separate from payroll occupational taxes withheld from employees.
Net profits are reported locally on forms such as Louisville's Form OL-3 or Covington's local return.
1Enter your gross business revenue and deductible business expenses.
2Select the Kentucky city or county where the business operates.
3Review the local Net Profits tax line to estimate your local license fee liability.
Occupational tax is withheld from employee payroll checks by employers. Net profits tax is paid directly by businesses (sole proprietors, LLCs, etc.) on their annual net business income.
Businesses file an annual Net Profits return (e.g., Form OL-3 for Louisville) with the local city or county tax administration, usually due by April 15th alongside federal returns.