Kentucky paycheck calculator
Kentucky taxes wages at one flat rate, which dropped again for 2026, after a small standard deduction that is the same for everyone. What makes Kentucky paychecks different is local tax: Louisville, Lexington and many other cities and counties charge an occupational license tax on wages, and it is figured on gross pay with no deduction for 401(k) contributions.
Take-home per paycheck
$2,273
- Take-home per year
- $59,085
- Total taxes per year
- $15,915
- Effective tax rate
- 21.2%
- Marginal tax rate
- 33.1%
- Kentucky has no withholding allowances: everyone gets the same standard deduction, and Form K-4 is only used to claim exemption.
Take-home per paycheck: $2,273 every 2 weeks
| Line | Every 2 weeks | Per year |
|---|---|---|
| Gross pay | $2,885 | $75,000 |
| Federal income tax | −$295 | −$7,670 |
| Social Security | −$179 | −$4,650 |
| Medicare | −$42 | −$1,088 |
| State income tax | −$96 | −$2,507 |
| Take-home pay | $2,273 | $59,085 |
- Take-home pay$59,08579%
- Federal income tax$7,67010%
- Social Security & Medicare$5,7388%
- State & local taxes$2,5073%
How Kentucky taxes your paycheck
- 3.5% flat
- One flat rate of 3.5% for 2026 on income above a small standard deduction, with no personal exemptions.
- None
- Kentucky has no state payroll tax withheld from employees.
- 2 included
- Many Kentucky cities and counties charge an occupational license tax on wages, withheld by your employer for work done there. Louisville Metro charges residents 2.2% (including transit and school board portions) and Lexington-Fayette charges 2.25%; these local taxes apply to gross wages, including 401(k) contributions.
- Aggregate
- Kentucky has no separate bonus rate; bonuses are withheld with the regular flat-rate formula, which works out to 3.5% of the bonus for most workers.
Kentucky income tax rates for 2026
These are the return rates. Your employer withholds using Kentucky's withholding method (2026 Kentucky withholding tax formula (42A003 TCF)), which the calculator above follows.
| Taxable income | Rate |
|---|---|
| Over $0 | 3.5% |
| Item | Amount |
|---|---|
| Standard deduction — All filers | $3,360 |
Other taxes on Kentucky paychecks
| Locality | Type | Resident rate |
|---|---|---|
| Louisville Metro (Jefferson County) | city | 2.2% |
| Lexington-Fayette | city | 2.25% |
$46,920 in Kentucky
$46,920 is the median annual wage in Kentucky (May 2025, BLS OEWS). A single filer paid every two weeks with no other income or deductions takes home $38,356 a year, or $1,475 per paycheck.
| Line | Every 2 weeks | Per year |
|---|---|---|
| Gross pay | $1,805 | $46,920 |
| Federal income tax | -$133 | -$3,450 |
| Social Security | -$112 | -$2,909 |
| Medicare | -$26 | -$680 |
| State income tax | -$59 | -$1,525 |
| Take-home pay | $1,475 | $38,356 |
How Kentucky withholding works
The Department of Revenue's 2026 withholding formula is short: annualize your pay, subtract the standard deduction, multiply by the flat rate and divide by your number of paydays. Filing status and dependents do not enter into it.
Kentucky has no withholding allowances or personal exemptions. Form K-4 is only used to claim exemption from withholding, for example if you had no Kentucky tax liability last year and expect none this year, or if you live in a reciprocal state and commute to Kentucky.
If you have more than one job, each employer subtracts the standard deduction, but you only get it once on your return. The Department suggests extra withholding in that case.
Local occupational license taxes
Most Kentucky paychecks carry a local occupational license tax for the city or county where you work. In Louisville Metro, residents pay three pieces: the Metro occupational tax, a transit tax and a school boards tax; non-residents who work in Louisville skip the school boards portion. Lexington-Fayette charges a single occupational license fee.
State law defines the wages these local taxes apply to so that 401(k), 403(b) and 457 deferrals and Section 125 cafeteria-plan amounts are added back in. Pre-tax savings lower your state tax but not your local occupational tax.
Pre-tax deductions and bonuses
For state withholding, the Department's taxable/exempt chart treats cafeteria plans, health care plans and 401(k) plans as not subject to Kentucky withholding, so those contributions reduce your Kentucky wages.
Bonuses are subject to Kentucky withholding. There is no separate bonus rate; the bonus goes through the same flat-rate formula, so for most workers the flat rate applies to the whole bonus. Local occupational tax applies to bonuses too.
What changed recently
Questions people ask
What is Kentucky's income tax rate in 2026?
A flat 3.5% on income above the $3,360 standard deduction, down from 4% in 2025. Kentucky has no personal exemptions.
What is the Louisville occupational tax rate?
Louisville Metro residents who work in Louisville/Jefferson County pay 2.2% of wages: 1.25% Metro occupational tax, 0.20% transit tax and 0.75% school boards tax. Non-residents working there pay 1.45%.
What is the Lexington occupational license fee?
The Lexington-Fayette Urban County Government charges 2.25% of compensation earned in Fayette County, withheld by your employer.
Does my 401(k) reduce Kentucky local occupational tax?
No. Kentucky law (KRS 67.750) adds 401(k), 403(b), 457 and Section 125 salary reductions back into the compensation that local occupational taxes are based on. Those contributions only lower your state income tax.
Do I need to fill out Kentucky Form K-4?
Only if you qualify for an exemption from withholding, such as having no Kentucky tax liability or living in a reciprocal state like Ohio, Indiana or West Virginia and commuting to Kentucky. Otherwise everyone is withheld the same way.
How are bonuses taxed in Kentucky?
Bonuses are subject to Kentucky withholding using the same flat-rate formula, which works out to 3.5% for most workers, plus any local occupational license tax where you work.
Sources
- 42A003 (TCF)(10-2025) 2026 Kentucky Withholding Tax Formula · retrieved 2026-10-16
- 42A003 (TCF)(12-2024) 2025 Kentucky Withholding Tax Formula · retrieved 2026-10-16
- 42A003 (3-26) Withholding Kentucky Income Tax — Instructions for Employers · retrieved 2026-10-16
- Occupational License Tax Regulations (2026) · retrieved 2026-10-16
- Occupational license fee: rates and current forms · retrieved 2026-10-16
- KRS 67.750 Definitions for KRS 67.750 to 67.790 · retrieved 2026-10-16
- Publication 15-T (2026), Federal Income Tax Withholding Methods · retrieved 2026-10-16
- Publication 15 (2026), (Circular E), Employer's Tax Guide · retrieved 2026-10-16
- Rev. Proc. 2025-32: 2026 inflation-adjusted tax items · retrieved 2026-10-16
- Form W-4 (2026), Employee's Withholding Certificate · retrieved 2026-10-16
- Publication 505 (2026), Tax Withholding and Estimated Tax · retrieved 2026-10-16
- Form 1040-ES (2026), Estimated Tax for Individuals · retrieved 2026-10-16
- Schedule 1-A (Form 1040) 2026, Additional Deductions (early-release draft) · retrieved 2026-10-16
- Schedule 8812 (Form 1040) 2026, Credits for Qualifying Children and Other Dependents (early-release draft) · retrieved 2026-10-16
- Working Families Tax Cuts: Individuals and workers (tips, overtime, seniors, car loan interest) · retrieved 2026-10-16
- Working Families Tax Cuts provisions (charitable deduction for non-itemizers, Section 70424) · retrieved 2026-10-16
- Child Tax Credit · retrieved 2026-10-16
- IR-2025-111: 401(k) limit increases to $24,500 for 2026 · retrieved 2026-10-16
- Rev. Proc. 2025-19: 2026 HSA limits · retrieved 2026-10-16
- BLS Occupational Employment and Wage Statistics (OEWS), May 2025, median annual wage by state · retrieved 2026-10-16