Take Home Pay for Kentucky (2026)
Last updated: January 15, 2026
Kentucky (KY) Key Facts
State Income Tax
4%
Sales Tax Rate
6%
Property Tax Rate
0.86%
Overall State Tax Burden
10.9% combined rates
How This Calculator Works in Kentucky
This calculator estimates your take-home pay in Kentucky, factoring in federal income tax, FICA, and Kentucky's state income tax.
Kentucky Overview
Take-home pay in Kentucky is affected by federal income tax, FICA, and state income tax at flat 4%. Many Kentucky cities and counties impose local occupational taxes (typically 1%-2.5%) on wages.
How Kentucky Compares
Kentucky's combined rates (income: 4%, sales: 6%, property: 0.86%) compare to Tennessee (0%, 7%, 0.71%) and Virginia (5.75%, 5.3%, 0.82%).
| State | Top Rate | Notes |
|---|---|---|
| Tennessee | 0% | Tennessee has an income tax rate of 0%. |
| Virginia | 5.75% | Virginia has an income tax rate of 5.75%. |
| Indiana | 3.05% | Indiana has an income tax rate of 3.05%. |
Kentucky's income tax rate of 4% compares to a national average of approximately 5.04%. This is below the national average.
Tips for Kentucky Residents
- 1Kentucky state income tax at flat 4% reduces your take-home pay on every paycheck.
- 2Many Kentucky cities and counties impose local occupational taxes (typically 1%-2.5%) on wages.
- 3Pre-tax 401(k), HSA, and FSA contributions reduce both federal and state taxable income, increasing your net pay.
- 4Your effective tax rate is typically lower than your marginal rate, especially in flat tax states.
- 5After major life changes (marriage, new child, job change), review both federal W-4 and state withholding forms to optimize take-home pay.