Kentucky cut its flat income tax to 3.5% for 2026. The bigger variable is local: most Kentucky cities and many counties charge an occupational license tax on wages earned there, roughly 1% to 3% combined, often with a school-board tax on top for residents.
2026 tax year, verified Sources
Estimated take-home this week
$930.92
from $1,153.85 gross. You keep 81%.
No local tax included. Some Kentucky cities and counties tax wages; pick yours under “Where you work.”
2026 tax year, rules last verified November 12, 2026. An estimate, not tax advice. How we calculate
Each extra dollar you earn loses about 23¢ to taxes, but across all your pay the average is 19¢. A raise never lowers your take-home: only the dollars above a bracket line pay the higher rate.
| Annual pay | Effective | Marginal |
|---|---|---|
| $15,000 | 10.4% | 11.2% |
| $30,000 | 15.5% | 23.2% |
| $45,000 | 18.0% | 23.2% |
| $60,000 | 19.3% | 23.2% |
| $75,000 | 21.2% | 33.1% |
| $90,000 | 23.2% | 33.1% |
| $105,000 | 24.6% | 33.1% |
| $120,000 | 25.7% | 33.1% |
| $135,000 | 26.7% | 35.1% |
| $150,000 | 27.6% | 35.1% |
Same pay, W-4 and benefits; each state’s default withholding answers, no local taxes. Take-home per week:
Kentucky’s formula is simple: annualize this paycheck, subtract the $3,360 standard deduction, take 3.5% and divide by your number of paychecks. The K-4 has no allowances; it only records an exemption or extra withholding.
Bonuses are withheld at 3.5%. Because the standard deduction is used up by regular pay, the bonus is taxed in full.
Local occupational license taxes are separate and are based on where you work. State law defines the wage base as pay before 401(k), 403(b), 457 and cafeteria-plan deductions, so they apply to your gross pay even though those deductions lower your state tax.
Some localities stop taxing once your wages reach a cap. Covington and Kenton County follow the Social Security wage base; Boone County has its own lower caps.
| Where you work | Resident rate | Nonresident rate | Wage cap |
|---|---|---|---|
| Louisville Metro (Jefferson County) | 2.2% | 1.45% | No cap |
| Lexington-Fayette | 2.75% | 2.25% | No cap |
| Bowling Green | 2.5% | 2% | No cap |
| Warren County (outside Bowling Green city limits) | 1.5% | 1% | No cap |
| Owensboro | 1.78% | 1.78% | No cap |
| Covington (with Kenton County) | 3.1497% | 3.1497% | City of Covington occupational tax: first $184,500; Kenton County occupational license fee: first $184,500 |
| Frankfort | 1.95% | 1.95% | No cap |
| Boone County (county taxes) | 0.95% | 0.95% | Boone County occupational tax: first $79,494; Boone County senior citizen and mental health tax: first $16,666 |
State: 3.5% after a $3,360 standard deduction. Resident rates include school-board taxes that apply only to people living in the district.
Single filer, standard W-4, no benefits, paid weekly, default K-4 answers. Kentucky takes $32.74 of this check (3.3% of gross).
| Line | Per week | Per year |
|---|---|---|
| Gross pay | $1,000.00 | $52,000.00 |
| Federal income tax | −$78.08 | −$4,060.16 |
| Social Security | −$62.00 | −$3,224.00 |
| Medicare | −$14.50 | −$754.00 |
| Kentucky income tax | −$32.74 | −$1,702.48 |
| Take-home pay | $812.68 | $42,259.36 |
Single filer, standard W-4, no benefits, no local tax. Per-week amounts; annual totals account for the Social Security wage cap.
| Salary | Gross / week | Federal | FICA | Kentucky | Take-home / week | Per year |
|---|---|---|---|---|---|---|
| $30,000 | $576.92 | $27.31 | $44.14 | $17.93 | $487.54 | $25,352 |
| $40,000 | $769.23 | $50.38 | $58.84 | $24.66 | $635.35 | $33,038 |
| $50,000 | $961.54 | $73.46 | $73.56 | $31.39 | $783.13 | $40,723 |
| $60,000 | $1,153.85 | $96.54 | $88.27 | $38.12 | $930.92 | $48,408 |
| $75,000 | $1,442.31 | $147.50 | $110.33 | $48.22 | $1,136.26 | $59,086 |
| $100,000 | $1,923.08 | $253.27 | $147.11 | $65.05 | $1,457.65 | $75,798 |
| $150,000 | $2,884.62 | $475.65 | $220.68 | $98.70 | $2,089.59 | $108,659 |
Married filing jointly with two children on $100,000: $1,648.62 a week ($85,728 a year).
Kentucky occupational license taxes are withheld by your employer based on where you work. This calculator models Louisville Metro, Lexington-Fayette, Bowling Green, Warren County, Owensboro, Covington with Kenton County, Frankfort and Boone County. For anywhere else, choose “Other Kentucky locality” and enter the combined rate from your pay stub or the local tax office.
Kentucky has no state disability, paid family leave or employee unemployment deduction. Unemployment insurance is funded by employers.
Kentucky has reciprocal agreements with Illinois, Indiana, Michigan, Ohio, West Virginia, Wisconsin and Virginia (for daily commuters). Residents of those states working in Kentucky check box 4 on the K-4 so no Kentucky tax is withheld, but local occupational taxes still apply where they work.
Kentucky withholds 3.5% of ($52,000 − $3,360) ÷ 52 = $32.74 a week. Local occupational tax is extra.
$22.00 if you live in Louisville Metro, $14.50 if you live outside Jefferson County. Nonresidents skip the 0.75% school board tax.
No. Kentucky law includes 401(k), 403(b) and 457 deferrals and cafeteria-plan deductions in the occupational tax base. They do lower your state income tax.
With box 4 of the K-4 checked, no Kentucky income tax is withheld, but Louisville Metro still withholds the 1.45% nonresident occupational tax.
Some do. Covington and Kenton County stop at $184,500 of wages for 2026, and Boone County stops its 0.8% tax at $79,494. Louisville and Lexington have no cap.
Kentucky rules for the 2026 tax year, last verified November 12, 2026. Federal sources are on the methodology page.
Every state page has its own withholding formula, local taxes, payroll programs and worked examples. Compare all states.