The formulas
- Taxable income = income - standard deduction - personal exemptions (when applied), not below zero
- Tax = 3.5% x (income - $3,360 standard deduction)
- Kentucky income tax = tax from the rate schedule
How it works
Tax year: 2026.
Kentucky taxes income at a flat 3.5%. Enter income before state deductions and choose whether to apply the state standard deduction and personal exemptions, or enter taxable income and switch them off. The tool computes state income tax only; credits other than those named are not applied.
House Bill 1 (2025) set Kentucky's flat rate at 3.5 percent for tax years beginning on or after January 1, 2026. The Department of Revenue set the 2026 standard deduction at $3,360. On a joint return the tool applies one deduction; spouses filing separately on a combined return each take their own.
Local taxes: Most Kentucky cities and counties levy an occupational license tax on wages, at rates each sets; Louisville Metro and Lexington-Fayette are the largest. It is not included.
Illustrative figures only. Check the result against your firm's methodology before relying on it.
Common questions
What is the Kentucky income tax rate for 2026?
Kentucky taxes income at a flat 3.5% for 2026. Tax = 3.5% x (income - $3,360 standard deduction).
What is the Kentucky standard deduction?
Single: $3,360; Married filing jointly or surviving spouse: $3,360; Head of household: $3,360; Married filing separately: $3,360 (2026, at low income).
Are there local income taxes in Kentucky?
Most Kentucky cities and counties levy an occupational license tax on wages, at rates each sets; Louisville Metro and Lexington-Fayette are the largest. It is not included.
Sources
Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.