[{"data":1,"prerenderedAt":34},["ShallowReactive",2],{"state-content-kentucky":3},{"id":4,"title":5,"body":6,"description":26,"extension":27,"meta":28,"navigation":29,"path":30,"seo":31,"stem":32,"__hash__":33},"states\u002Fstates\u002Fkentucky.md","Kentucky Tax Overview",{"type":7,"value":8,"toc":22},"minimark",[9,13,16,19],[10,11,12],"p",{},"Kentucky has a flat state income tax rate of 3.5%. The rate has been declining steadily. It was 5% as recently as 2022, then dropped to 4.5% in 2023, to 4% in 2024, and to 3.5% for 2026. Kentucky law continues to reduce the rate by 0.5 percentage points each year that the state meets certain revenue growth thresholds. The goal is to eventually eliminate the income tax entirely, though that remains years away if it happens at all.",[10,14,15],{},"The rapid rate reductions mean Kentucky workers have seen real, measurable increases in take-home pay since 2022. A worker earning $60,000 saved approximately $900 per year from the move from 5% to 3.5%. Each subsequent reduction adds to that savings. Workers who have been in Kentucky for several years and are comparing current paystubs to older ones will notice the change clearly.",[10,17,18],{},"Kentucky does not conform to the federal standard deduction. Instead, it has its own standard deduction of $2,980 for single filers. This is considerably lower than the federal $14,600, which means Kentucky taxable income is higher than federal taxable income for workers who take the standard deduction. At $60,000 of gross income, Kentucky taxable income is about $57,020, and the tax at 3.5% is roughly $2,000.",[10,20,21],{},"Some Kentucky cities impose a local occupational tax. Louisville charges 2.2% and Lexington charges 2.25%. These are on top of the state flat rate. Workers in Louisville earning $65,000 pay approximately $2,275 in state income tax and $1,430 in city occupational tax, for a combined $3,705. Workers outside the major cities typically avoid the local tax entirely.",{"title":23,"searchDepth":24,"depth":24,"links":25},"",2,[],"How Kentucky's income tax affects your paycheck","md",{},true,"\u002Fstates\u002Fkentucky",{"title":5,"description":26},"states\u002Fkentucky","cP9kETfuhVqMHsjqYr6oQNhT071ACKR9RmgaEOQaUmY",1776796069586]