Kentucky charges 3.5% flat state income tax plus local taxes in some areas. Use the rsu tax calculator pre-loaded with Kentucky rates.
Open RSU Tax Calculator →RSU vesting in Kentucky triggers a flat 3.5% state income tax, treated as ordinary income just like your salary. Your employer typically sells shares at vesting to cover the combined federal, state, and FICA withholding, which can consume 35-50% of the vested shares depending on your income level. Local taxes in some Kentucky areas increase the sell-to-cover percentage further. This calculator shows you exactly how many shares (or dollars) you keep after all Kentucky tax layers are applied.
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 rsu 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.