Kentucky charges 3.5% flat state income tax plus local taxes in some areas. Use the cost of living calculator pre-loaded with Kentucky rates.
Open Cost of Living Calculator →Kentucky's cost of living index is 90, and the flat 3.5% state tax further affects how far your dollar goes. Near-average living costs mean the state tax rate is the primary differentiator when comparing Kentucky to other states. Local taxes in some Kentucky areas add to the burden. This calculator factors in both taxes and cost of living for 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 cost of living 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.