Kentucky Income Tax Guide 2025
Kentucky Tax Brackets 2025
Kentucky uses a progressive tax system with rates varying based on income level and filing status. Here's what you need to know:
Sample Take-Home Pay Calculations for Kentucky
Here's what different salary levels look like after taxes in Kentucky(assuming single filing status and standard deductions):
| Gross Salary | Net Take-Home | Effective Tax Rate | Monthly Net |
|---|---|---|---|
| $40,000 | $32,466 | 18.83% | $2,706 |
| $50,000 | $40,051 | 19.90% | $3,338 |
| $60,000 | $47,636 | 20.61% | $3,970 |
| $75,000 | $57,689 | 23.08% | $4,807 |
| $100,000 | $74,151 | 25.85% | $6,179 |
| $125,000 | $90,416 | 27.67% | $7,535 |
| $150,000 | $106,379 | 29.08% | $8,865 |
| $200,000 | $140,251 | 29.87% | $11,688 |
Living in Kentucky: Tax Considerations
When considering employment or relocation to Kentucky, it's important to factor in the total tax burden, including:
- State income tax rates
- Local taxes (if applicable)
- Sales tax rates
- Property tax rates
- Cost of living index
Maximizing Your Take-Home Pay in Kentucky
- Contribute to tax-deferred retirement accounts (401k, IRA)
- Utilize Health Savings Accounts (HSA) if eligible
- Take advantage of Flexible Spending Accounts (FSA)
- Understand available state tax deductions and credits
- Consider the timing of income and deductions
Kentucky vs Other States
Compare your take-home pay in Kentucky with other states: