Estimate your take-home pay in Kentucky for 2026. The state levies income tax with a top rate of 4% (Flat rate of 4.0%). This means a portion of every paycheck goes toward state income tax in addition to federal withholding, Social Security, and Medicare.
Kentucky Tax Snapshot
- State Income Tax
- 4% top rate
- Sales Tax (state + local avg)
- 6.00%
- Avg Property Tax Rate
- 0.83%
- Median Home Value
- $177,100
- State Minimum Wage
- $7.25/hr
Did You Know?
Kentucky moved to a flat 4% income tax with planned further reductions.
How Kentucky Taxes Affect Your Paycheck
When you earn a paycheck in Kentucky, your employer withholds federal income tax, Social Security (6.2%), and Medicare (1.45%). On top of that, the state withholds income tax based on flat rate of 4.0%. The state minimum wage is $7.25 per hour, which sets the floor for hourly workers. Understanding these deductions helps you budget effectively and plan for the average 0.83% property tax rate on homes valued around $177,100.
Kentucky also levies a combined state and average local sales tax of 6.00%, which affects your overall purchasing power. Factor this into your budget when calculating how far your paycheck stretches.