Kentucky Income Tax
Kentucky has a flat income tax with a rate of 4.5%. All taxable income is taxed at the same rate regardless of how much you earn.
Kentucky Sales Tax
The state sales tax rate in Kentucky is 6%. With an average local sales tax of 0%, the combined average sales tax rate is 6%.
Kentucky Property Tax
The effective property tax rate in Kentucky is 0.86%. With a median home value of $177,300, the median annual property tax bill is $1,382 ($115/month).
Corporate & Business Taxes
The corporate tax rate in Kentucky is 5%.
Other Taxes in Kentucky
| Tax Type | Rate / Amount |
|---|---|
| Gas Excise Tax | $0.26/gallon |
| Cigarette Tax | $1.10/pack |
| Estate Tax | No |
| Inheritance Tax | Yes |
Key Facts
One of six states with an inheritance tax. Moved to flat income tax in 2023.
Compare to Other States
See how salaries compare on our average salary in Kentucky page. Thinking about starting a business? Check our LLC guide for Kentucky. See the current minimum wage in Kentucky.
Financial Calculators
Plan your finances in Kentucky with our free tools:
- Paycheck Calculator — estimate take-home pay after taxes
- Salary Calculator — convert hourly to annual pay
- Mortgage Calculator — estimate monthly home payments
- Home Affordability Calculator — see how property taxes affect what you can afford