Basic Info
Deductions
Insurance Premiums
Your Kentucky Paycheck Results
Calculating your paycheck…
Take-Home Pay:
$0.00
Per Pay Period:
$0.00
Tax Breakdown
Federal Income Tax:
$0.00
State Income Tax (KY):
$0.00
Social Security:
$0.00
Medicare:
$0.00
Additional Medicare:
$0.00
Total Tax:
$0.00
Deduction Breakdown
401(k) Contribution:
$0.00
Traditional IRA:
$0.00
HSA Contribution:
$0.00
FSA Contribution:
$0.00
Health Insurance:
$0.00
Dental Insurance:
$0.00
Vision Insurance:
$0.00
Other Deductions:
$0.00
Total Deductions:
$0.00
Gross Annual Income:
$0.00
Effective Tax Rate:
0.00%
Kentucky State Income Tax Information
Kentucky imposes a flat income tax rate of 4% on all taxable income as of 2025. This rate applies uniformly across all income levels.
The standard deduction for 2025 is $3,270, which reduces your taxable income.
Note: Starting January 1, 2026, the income tax rate will decrease to 3.5%.
Federal Income Tax
Federal income tax rates range from 10% to 37% depending on income level. The standard deduction is $15,000 for single filers and $30,000 for married filing jointly in 2025.
FICA Taxes
| Tax Component | Rate | Income Limit |
|---|---|---|
| Social Security | 6.2% | Up to $168,600 |
| Medicare | 1.45% | No Limit |
| Additional Medicare | 0.9% | Income above $200,000 (Single) / $250,000 (Married) |
Pre-Tax Deductions
Common pre-tax deductions available to Kentucky residents include:
- Contributions to 401(k), 403(b), and other retirement plans
- Health and dental insurance premiums
- Health Savings Account (HSA) and Flexible Spending Account (FSA) contributions
- Pre-tax transit and commuter benefits
Kentucky-Specific Deductions and Credits
| Credit or Deduction | Description |
|---|---|
| Personal Tax Credit | $40 credit per filer applied directly against tax liability |
| Dependent Care Credit | Tax credit for eligible dependent care expenses |
| Retirement Income Exclusion | Partial exclusion of certain retirement income for seniors |
Interesting Facts About Kentucky Taxes
- Kentucky is one of the few states with a flat income tax rate rather than progressive brackets.
- The income tax rate reduction scheduled for 2026 is part of the state’s plan to stimulate economic growth.
- The personal tax credit helps reduce the overall tax burden for many filers.
Frequently Asked Questions (FAQs)
- Does Kentucky have a progressive income tax?
- No, Kentucky uses a flat income tax rate of 4% as of 2025.
- Are there local income taxes in Kentucky?
- No, Kentucky does not impose additional local income taxes.
- What deductions are allowed on Kentucky state taxes?
- The state allows a standard deduction of $3,270 and various credits such as personal tax credits and dependent care credits.
- Will Kentucky’s income tax rate change soon?
- Yes, it will decrease to 3.5% starting January 1, 2026.