Kentucky charges 3.5% flat state income tax plus local taxes in some areas. Use the employer cost calculator pre-loaded with Kentucky rates.
Open Employer Cost Calculator →Employers in Kentucky must withhold and remit the flat 3.5% state income tax, plus handle their share of FICA, FUTA, and Kentucky's state unemployment insurance. Localities in Kentucky with income tax add another withholding and remittance obligation. The total cost to employ someone at a $75,000 salary in Kentucky is typically 10-15% above the gross salary, covering the employer's payroll tax share, SUI, workers' comp, and benefits. This calculator breaks down the full employer cost with Kentucky's specific tax rates.
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 employer cost 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.