Kentucky Income Tax Rates & Brackets — 2026
Kentucky taxes individual income at a flat 3.5% in 2026. A single filer on $100,000 owes about $3,382 — an effective rate of 3.38%.
The Kentucky tax gauge at $100,000
Kentucky
$100,000 · Single · TY2026Kentucky tax brackets for 2026
Every filing status, as published by Kentucky Department of Revenue. Rates apply to Kentucky taxable income — that is income after the deductions and exemptions shown on each card.
Single
Standard deduction $3,360| Taxable income | Marginal rate |
|---|---|
| $0 and above | 3.5% |
Married filing jointly
Standard deduction $3,360| Taxable income | Marginal rate |
|---|---|
| $0 and above | 3.5% |
Married filing separately
Standard deduction $3,360| Taxable income | Marginal rate |
|---|---|
| $0 and above | 3.5% |
Head of household
Standard deduction $3,360| Taxable income | Marginal rate |
|---|---|
| $0 and above | 3.5% |
How the maths actually works
Kentucky's flat rate applies to taxable income, not to gross income. A single filer on $100,000 first subtracts $3,360 of deductions and exemptions, leaving $96,640 taxable — which is why the effective rate (3.38%) is lower than the statutory 3.5%. Marginal vs effective rate, explained.
What Kentucky costs at different incomes
Single filer, standard deduction, no dependents. Rank is out of 50 jurisdictions, lowest tax first.
| Gross income | Taxable income | State tax | Effective rate | Per month | National rank | vs median state |
|---|---|---|---|---|---|---|
| $50,000 | $46,640 | $1,632 | 3.26% | $136 | 32nd of 50 | +$188 |
| $75,000 | $71,640 | $2,507 | 3.34% | $209 | 23rd of 50 | −$41 |
| $100,000 | $96,640 | $3,382 | 3.38% | $282 | 20th of 50 | −$345 |
| $150,000 | $146,640 | $5,132 | 3.42% | $428 | 18th of 50 | −$933 |
| $250,000 | $246,640 | $8,632 | 3.45% | $719 | 16th of 50 | −$2,126 |
| $500,000 | $496,640 | $17,382 | 3.48% | $1,449 | 16th of 50 | −$4,748 |
| $1,000,000 | $996,640 | $34,882 | 3.49% | $2,907 | 16th of 50 | −$9,883 |
Kentucky income tax calculator
Change the income, filing status and number of dependents to see the bracket-by-bracket breakdown.
- Income
- $100,000
- Standard deduction
- $3,360
- Exemptions
- $0
- Taxable income
- $96,640
Bracket by bracket
| Taxable income in bracket | Rate | Income taxed | Tax |
|---|---|---|---|
| $0 and above | 3.5% | $96,640 | $3,382.40 |
This estimates state income tax only, using the standard deduction and personal/dependent exemptions. It does not model itemised deductions, most credits, retirement-income exclusions, or local income taxes, and Kentucky localities do levy their own income tax. Your actual bill will differ. See how we calculate this and Kentucky's full brackets and sources.
Kentucky versus its neighbours
State income tax owed by a single filer on $100,000 in 2026.
What changed since 2025
Kentucky's income tax changed between 2025 and 2026. A single filer on $100,000 owes $487 less than in 2025.
| 2025 | 2026 | |
|---|---|---|
| Top marginal rate | 4% | 3.5% |
| Structure | flat | flat |
| Standard deduction (single) | $3,270 | $3,360 |
| Tax on $100,000 (single) | $3,869 | $3,382 |
The 2025 rules are kept in full on the Kentucky 2025 tax year page, for amended returns and late filings.
Recent legislated changes
- CutEffective · H.B. 1 (2025 Regular Session), 2025 Ky. Acts ch. 1
Kentucky's flat individual income tax rate fell from 4% to 3.5% for taxable years beginning on or after January 1, 2026.
- IndexingEffective
The standard deduction rose from $3,270 to $3,360 under the annual inflation adjustment in KRS 141.081.
Retirement income
How Kentucky treats retirement income in tax year 2025. This is verified separately from the rate schedule above and can be for a different tax year.
Kentucky does not tax Social Security benefits.
The 2025 pension income exclusion is 100% of taxable retirement benefits or $31,110, whichever is less. Retirees from the federal government, the Commonwealth of Kentucky or a Kentucky local government with service performed before 1 January 1998 may exclude more.
All pension and retirement income paid under a written retirement plan is eligible, including IRA, 401(k) and similar deferred compensation plans, Roth conversion income, death benefits and disability retirement benefits.
- Pension income exclusion (Schedule P) — up to $31,110. Tax year 2025. Government service performed before 1 January 1998 can support a larger exclusion.
Not modelled: The larger exclusion for pre-1998 government service is proportional to that service and is not modelled.
Source: Kentucky Department of Revenue — Schedule P, Kentucky Pension Income Exclusion (2025) (retrieved 2026-09-04). Compare every state.
Capital gains
How Kentucky taxes a capital gain in tax year 2025. This is verified separately from the rate schedule above and can be for a different tax year.
Kentucky taxes a capital gain at the flat 4% rate. Schedule M is the complete list of Kentucky's additions to and subtractions from federal adjusted gross income, and no line on it touches a capital gain generally.
Taxed at the same rates as every other kind of income: the holding period changes nothing.
Kentucky starts from federal adjusted gross income and modifies it only through Schedule M, which carries no capital gains subtraction.
Exclusions that reach only certain assets
- Lump-sum distribution capital gains election — Where the taxpayer elected the 20 percent capital gains rate for federal purposes on the portion of a lump-sum distribution, a Kentucky adjustment applies. Schedule P and Form 4972-K are required.
These do not change the rates above, which are the rates on a gain that qualifies for no exclusion — a share of stock, for instance.
Not modelled: The ordinary treatment is established by the absence of any capital gains modification from the state's own complete instructions and subtraction schedule, rather than by an affirmative statement that no preference exists.
Source: Kentucky Department of Revenue — 2025 Schedule M (Form 740) — Kentucky Federal Adjusted Gross Income Modifications (retrieved 2026-09-19). Compare every state.
Local income taxes
Kentucky has no state-administered local income tax, but most counties and many cities levy an occupational license fee (a payroll tax) on wages earned within the jurisdiction, collected by the local government. A worker can owe both a city and a county fee. Local tax is not included in any figure above.
| Locality | Rate |
|---|---|
| Louisville Metro (Jefferson County)2.2% for employees who both live and work in Louisville Metro; 1.45% for non-residents working there. | 2.2% |
| Lexington-Fayette Urban County2.25% occupational license fee on all individuals, employers and businesses in Fayette County, per the LFUCG Charter. | 2.25% |
What else to know about Kentucky
- Kentucky levies a flat 3.5% tax on net income for tax year 2026.
- H.B. 1 (2025 Regular Session) cut the rate from 4% to 3.5% for taxable years beginning on or after January 1, 2026. The 2025 rate remains 4%.
- Further reductions are not automatic. KRS 141.020, as rewritten by H.B. 8 (2022) and amended by H.B. 1 (2025), requires the Office of State Budget Director to certify that revenue and budget-reserve conditions were met, and the General Assembly must then vote to enact each further cut.
- Kentucky's standard deduction is $3,360 for 2026 and is the same for every filing status. The Department of Revenue re-indexes it each year under KRS 141.081.
- Kentucky has no personal or dependent exemption. It uses small nonrefundable personal tax credits ($40 age 65 or over, $40 blind, $20 Kentucky National Guard) and a family size tax credit for low-income filers.
- Most Kentucky counties and many cities levy a separate local occupational license fee on wages. It is not included in the state figure.
Capital gains
Kentucky taxes capital gains as ordinary income at the flat 3.5% rate; there is no preferential rate or exclusion.
What our figures leave out
Sources
- 1.Kentucky Department of RevenueState revenue department2026 Kentucky Withholding Tax Formula (42A003 (TCF)(10-2025))Retrieved · "2026 Kentucky Standard Deduction: $3,360. 2026 Kentucky Tax Rate: 3.5% of taxable income."
- 2.Tax FoundationResearch organisation (cross-check)Kentucky Tax Rates & RankingsRetrieved · Cross-check: "Kentucky has a flat 3.50 percent individual income tax rate."
- 3.Kentucky Department of RevenueState revenue departmentKentucky DOR Announces 2026 Standard DeductionRetrieved · "After adjusting for inflation, the standard deduction for 2026 is $3,360, an increase of $90." Calculated under KRS 141.081.
- 4.Kentucky General Assembly (Legislative Research Commission)State statuteKRS 141.020 - Levy of income tax on individuals; rate of normal taxRetrieved · (2)(e) "For taxable years beginning on or after January 1, 2024, but before January 1, 2026, the tax shall be four percent (4%) of net income." (2)(f) "For taxable years beginning on or after January 1, 2026, the tax shall be three and one-half percent (3.5%) of net income." Amended 2025 Ky. Acts ch. 1 (H.B. 1), effective June 27, 2025.
- 5.Kentucky Department of RevenueState revenue departmentIndividual Income TaxRetrieved · Describes Kentucky's flat rate and the nonrefundable personal tax credits ($40 age 65 or over, $40 blind, $20 Kentucky National Guard) and the family size tax credit.
- 6.Louisville Metro Revenue CommissionGovernmentForm W-1 Instructions, Tax Year 2025Retrieved · Resident employees 2.2% (.0220); non-resident employees 1.45% (.0145).
- 7.Lexington-Fayette Urban County GovernmentGovernmentBusiness licensing and taxesRetrieved · "The LFUCG Charter provides that the 2.25% occupational license fee applies to all individuals, employers and businesses in Fayette County."
Figures on this page were last checked against these sources on . Found something wrong? Report it.