TakeHomeTax

Lexington Income Tax Calculator

Calculate your take-home pay in Lexington, Kentucky including the 2.25% local income tax on top of Kentucky's 3.5% state rate.

$
Take-Home Pay (with city tax)
$73,37526.6% effective rate
$6,115/month after all taxes
Lexington City Tax
$2,250
2.25% local rate
Cost of City Tax
$188/mo
$87 per paycheck
Without City Tax
$75,625
$2,250 more per year
State Tax
$3,500
3.5% flat
Full Tax Breakdown
Gross Salary$100,000
Federal Income Tax−$13,225
Social Security (6.2%)−$6,200
Medicare (1.45%)−$1,450
Kentucky State Tax−$3,500
Lexington City Tax (2.25%)−$2,250
Total Tax$26,625
Annual Take-Home$73,375
Monthly Take-Home$6,115
Biweekly Take-Home$2,822

How Lexington's 2.25% Tax Hits at Different Salaries

SalaryCity TaxTake-Home (with city tax)Take-Home (without)City Tax Cost/Month
$50,000$1,125$39,480$40,605$94
$75,000$1,688$57,225$58,913$141
$100,000$2,250$73,375$75,625$188
$125,000$2,813$89,476$92,289$234
$150,000$3,375$105,126$108,501$281
$200,000$4,500$137,387$141,887$375

Lexington Local Income Tax: What You Need to Know

Lexington/Fayette County imposes a 2.25% occupational tax — slightly higher than Louisville's 2.2%. Combined with Kentucky's 3.5% state rate, Lexington workers pay 5.75% in state and local income tax.

The tax applies to all wages and net profits earned within Fayette County. Both residents and non-residents are subject to the tax if their income is earned in the county.

Home to the University of Kentucky, Lexington's occupational tax is a primary revenue source for city services and has remained stable at 2.25% for several years.

The 2.25% local tax is applied on top of Kentucky's 3.5% state income tax and federal income tax. On a $100,000 salary, Lexington's local tax costs approximately $2,250/year — that's $188/month or $87 per biweekly paycheck.

This tax applies to both residents and non-residents earning income in Lexington. Even if you commute from outside the city, you owe the local tax on wages earned within Lexington.

Other Cities with Local Tax in Kentucky

Louisville
2.2% local rate
$2,200/year on $100K
Covington
2.5% local rate
$2,500/year on $100K
Bowling Green
1.85% local rate
$1,850/year on $100K

Frequently Asked Questions

How much is Lexington's local income tax?

Lexington charges a 2.25% local income tax. On a $100,000 salary, this costs approximately $2,250/year. This tax applies to both residents and non-residents earning income in the city.

Can I avoid Lexington's local tax by living in the suburbs?

Partially. Lexington taxes non-residents on income earned within the city at 2.25%. You'd need to both live and work outside the city to avoid it entirely.

What is Lexington's total combined tax rate?

Including Kentucky's 3.5% state rate, Lexington's 2.25% local rate, and federal taxes, a $100K earner pays an effective rate of approximately 26.6%.

Is the city tax deductible on my federal return?

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.

Related Pages

Kentucky Overview$100K in KentuckyKentucky Tax BracketsRelocation CalculatorPaycheck Calculator
The Take-Home Tax Guide
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