Kentucky charges 3.5% flat state income tax plus local taxes in some areas. Use the w-4 withholding calculator pre-loaded with Kentucky rates.
Open W-4 Withholding Calculator →Getting your W-4 right in Kentucky is important because you need to coordinate federal withholding with Kentucky's flat 3.5% state withholding. If your W-4 is set too conservatively, you lend the government an interest-free loan; too aggressively, and you face an underpayment penalty. Workers in Kentucky localities with income tax need to account for that additional withholding layer. This calculator helps you dial in the right federal withholding amount given your Kentucky state tax situation.
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 w-4 withholding 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.