Kentucky Income Tax 2026
Kentucky has a flat 3.50% income tax for 2026. The standard deduction is $3,360 (single) / $3,360 (married filing jointly). Flat tax. Rate cut from 4.0% to 3.5% effective Jan 1, 2026 (HB 1, 2025 session). Standard deduction is a single statewide amount of $3,360 for 2026 (announced by DOR Sep 2025, +$90 inflation adjustment, set annually per KRS 141.081); it does NOT vary by filing status, so MFJ is also $3,360 (a married couple filing a joint return claims one $3,360 deduction; spouses filing separately on a combined return each claim it). No personal exemptions. Social Security benefits are fully exempt. Up to $31,110 per person of other retirement income (pensions, IRA/401(k), annuities) is excluded; amounts above may be partially taxable based on service before/after Jan 1, 1998. IMPORTANT: many Kentucky cities and counties levy LOCAL occupational license taxes on wages (gross-wage payroll tax, not on KY taxable income) - e.g. Louisville Metro ~2.2%, Lexington-Fayette 2.25%, Covington 2.45%, Bowling Green ~1.85%. These are separate from the 3.5% state tax. No state-level local add-on to the income tax itself.
Kentucky tax brackets (single, 2026)
| Taxable income | Rate |
|---|---|
| $0+ | 3.50% |
Tax on common incomes in Kentucky (2026, single)
| Income | State tax | Take-home |
|---|---|---|
| $20,000 | $582 | $17,498 |
| $25,000 | $757 | $21,440 |
| $30,000 | $932 | $25,353 |
| $35,000 | $1,107 | $29,195 |
| $40,000 | $1,282 | $33,038 |
| $45,000 | $1,457 | $36,880 |
| $50,000 | $1,632 | $40,723 |
| $55,000 | $1,807 | $44,565 |
| $60,000 | $1,982 | $48,408 |
| $65,000 | $2,157 | $52,250 |
2026 figures. Source: Kentucky Department of Revenue + Tax Foundation. Not tax advice.