Kentucky Income Tax Calculator 2026

Calculate your Kentucky state income tax for 2026. Kentucky has a flat 3.50% income tax rate.

By Konstantin Iakovlev · Updated October 19, 2026 · Methodology

$
Deduction

Federal Income Tax

$7,670.00

Effective Tax Rate

10.23%

Marginal Tax Rate

22%

FICA (SS + Medicare)

$5,737.50

Total Tax Burden

$15,914.90

After-Tax Income

$59,085.10

Tax Calculation Breakdown

Gross Income$75,000.00
Above-the-Line Deductions- $0.00
Adjusted Gross Income (AGI)$75,000.00
Standard Deduction- $16,100.00
Taxable Income$58,900.00
10% on $0.00 – $12,400.00$1,240.00
12% on $12,400.00 – $50,400.00$4,560.00
22% on $50,400.00 – $105,700.00$1,870.00
Federal Income Tax (before credits)$7,670.00
Federal Income Tax (after credits)$7,670.00
Social Security (6.2%)$4,650.00
Medicare (1.45%)$1,087.50
Total FICA$5,737.50
Kentucky Taxable Income$71,640.00
Kentucky Income Tax$2,507.40
Total Tax$15,914.90
After-Tax Annual Income$59,085.10
Monthly Take-Home$4,923.76

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

Kentucky Income Tax Overview

Kentucky taxes individual income at a single flat rate of 3.5% in 2026, down from 4% the year before as part of a phased reduction the legislature can continue if revenue targets are met. There are no brackets: a teacher, a welder, and a surgeon all face the same 3.5% on their Kentucky taxable income. The state grants a standard deduction of $3,360 per filer regardless of filing status, and it does not use personal exemptions.

This state tax sits on top of federal income tax, but the two are figured differently. Kentucky starts from federal adjusted gross income, then applies its own deduction and rate, so your federal bracket has no bearing on the 3.5% you owe the state. Kentucky is also friendlier than most states to retirees: Social Security benefits are fully exempt, and there is a pension exclusion of up to $31,110 for qualifying retirement income. Filing and payment run through the Kentucky Department of Revenue, generally on the same April deadline as your federal return.

Kentucky Income Tax Rate

3.50%

Flat rate — same for all income levels

Kentucky Tax Snapshot

State Sales Tax 6.00%
Avg. Property Tax 0.72%
Minimum Wage $7.25/hr

Official Sources:

Kentucky Income Tax FAQ

Who has to pay Kentucky income tax?
Generally, residents owe the 3.5% flat tax on their full taxable income, and nonresidents owe it on income earned from Kentucky sources, such as wages for work performed in the state. Part-year residents prorate based on the portion of the year they lived in Kentucky. The Kentucky Department of Revenue administers filing and collection.
How does the 3.5% flat rate work with my federal taxes?
They are stacked but independent. Kentucky uses your federal adjusted gross income as a starting point, subtracts its $3,360 standard deduction, and applies a flat 3.5%, while the IRS applies its own graduated brackets to a separately calculated taxable income. Moving into a higher federal bracket does not change your Kentucky rate.
Is retirement income taxed in Kentucky?
Social Security benefits are fully exempt from Kentucky income tax. Other retirement income, including pensions and 401(k) or IRA distributions, qualifies for an exclusion of up to $31,110 per person; amounts above that are taxed at the flat 3.5%. This makes Kentucky relatively favorable for retirees compared with many states.
Did Kentucky's income tax rate change for 2026?
Yes. The flat rate dropped to 3.5% effective January 1, 2026, from 4% in 2025. Kentucky's reform law allows further cuts in future years if specific revenue and budget-reserve conditions are met, so the rate is on a downward path but not guaranteed to fall every year.

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