Calculate your take-home pay in Covington, Kentucky including the 2.5% local income tax on top of Kentucky's 3.5% state rate.
| Salary | City Tax | Take-Home (with city tax) | Take-Home (without) | City Tax Cost/Month |
|---|---|---|---|---|
| $50,000 | $1,250 | $39,355 | $40,605 | $104 |
| $75,000 | $1,875 | $57,038 | $58,913 | $156 |
| $100,000 | $2,500 | $73,125 | $75,625 | $208 |
| $125,000 | $3,125 | $89,164 | $92,289 | $260 |
| $150,000 | $3,750 | $104,751 | $108,501 | $313 |
| $200,000 | $5,000 | $136,887 | $141,887 | $417 |
Covington levies a 2.5% local income tax on both residents and non-residents earning income in the city. This is in addition to Kentucky's 3.5% state income tax, bringing the combined state and local rate to 6.00%.
Across the river from Cincinnati, with one of Kentucky's highest local rates.
The local tax applies to earned income including wages, salaries, and in most cases net self-employment income. Investment income, pensions, and Social Security are typically exempt from local income taxes.
The 2.5% local tax is applied on top of Kentucky's 3.5% state income tax and federal income tax. On a $100,000 salary, Covington's local tax costs approximately $2,500/year — that's $208/month or $96 per biweekly paycheck.
This tax applies to both residents and non-residents earning income in Covington. Even if you commute from outside the city, you owe the local tax on wages earned within Covington.
Covington charges a 2.5% local income tax. On a $100,000 salary, this costs approximately $2,500/year. This tax applies to both residents and non-residents earning income in the city.
Partially. Covington taxes non-residents on income earned within the city at 2.5%. You'd need to both live and work outside the city to avoid it entirely.
Including Kentucky's 3.5% state rate, Covington's 2.5% local rate, and federal taxes, a $100K earner pays an effective rate of approximately 26.9%.
Yes, local income taxes are deductible as part of your state and local tax (SALT) deduction if you itemize. However, the SALT deduction is capped at $10,000 ($5,000 for married filing separately), which limits the benefit for many taxpayers.