Kentucky charges 3.5% flat state income tax plus local taxes in some areas. Use the bonus tax calculator pre-loaded with Kentucky rates.
Open Bonus Tax Calculator →When you receive a bonus in Kentucky, your employer typically withholds at the federal supplemental rate of 22%, plus Kentucky's flat 3.5%, and FICA at 7.65%. Local income taxes in some parts of Kentucky take an additional cut. The combined withholding can make bonuses feel heavily taxed, though your actual liability may differ from withholding at year-end. This calculator shows both the withholding and the true tax on your bonus in Kentucky.
Kentucky levies a flat 3.5% state income tax on all taxable income regardless of how much you earn. This makes tax planning straightforward: for every additional dollar you earn, 3.5 cents goes to Kentucky. However, certain localities in Kentucky impose their own income taxes, which effectively raise the combined state and local rate above 3.5%. Be sure to check whether your city or county adds a local income tax.
The table below shows what you actually keep at five salary levels in Kentucky, accounting for federal tax, FICA, and Kentucky's flat 3.5% state tax plus estimated local taxes.
See how Kentucky compares to other South states. Each link takes you to the bonus tax calculator landing page for that state.
For a comprehensive breakdown of Kentucky’s tax structure, salary comparisons, cost-of-living analysis, and more, visit the full Kentucky take-home pay page.