Calculate your take-home pay in Louisville, Kentucky including the 2.2% 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 | $1,100 | $39,505 | $40,605 | $92 |
| $75,000 | $1,650 | $57,263 | $58,913 | $138 |
| $100,000 | $2,200 | $73,425 | $75,625 | $183 |
| $125,000 | $2,750 | $89,539 | $92,289 | $229 |
| $150,000 | $3,300 | $105,201 | $108,501 | $275 |
| $200,000 | $4,400 | $137,487 | $141,887 | $367 |
Louisville/Jefferson County levies a 2.2% occupational tax on all wages earned within the county. This applies to both residents and non-residents — if you work in Jefferson County, you pay regardless of where you live.
Combined with Kentucky's flat 3.5% state rate, Louisville workers face a 5.7% combined state and local income tax burden. Unlike Maryland or Indiana county taxes, Kentucky's local occupational taxes generally don't provide credits between cities, so you could owe tax in both your city of residence and city of work.
The occupational tax applies to wages, salaries, and net self-employment income but not investment income, pensions, or Social Security benefits.
The 2.2% local tax is applied on top of Kentucky's 3.5% state income tax and federal income tax. On a $100,000 salary, Louisville's local tax costs approximately $2,200/year — that's $183/month or $85 per biweekly paycheck.
This tax applies to both residents and non-residents earning income in Louisville. Even if you commute from outside the city, you owe the local tax on wages earned within Louisville.
Louisville charges a 2.2% local income tax. On a $100,000 salary, this costs approximately $2,200/year. This tax applies to both residents and non-residents earning income in the city.
Partially. Louisville taxes non-residents on income earned within the city at 2.2%. You'd need to both live and work outside the city to avoid it entirely.
Including Kentucky's 3.5% state rate, Louisville's 2.2% local rate, and federal taxes, a $100K earner pays an effective rate of approximately 26.6%.
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.