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Kentucky Personal Income Tax Laws

The vast majority of states collect a personal income tax, a percentage an individual's salary or any other forms of income (or "taxable income"). States that do not collect income taxes typically make up for it with sales taxes, property taxes, or other forms of business and consumer taxes. Most states that collect income tax require higher earners to pay a higher percentage of their income in taxes, while others have a so-called "flat tax" that applies to all taxpayers regardless of income. Income tax revenue is used by states to pay for highways, schools, emergency services, public parks, and other public goods and services.

Personal Income Taxes in Kentucky: Overview

Kentucky has what is known as a progressive tax code, which taxes high earners at a higher rate: Those earning less than $3,000 pay 2 percent in taxes, while those earning more than $75,000 pay a 6 percent tax rate. The state also provides tax credits for many filers, including a $40 credit for taxpayers who turn 65 years old before the close of the taxable year.

A breakdown of Kentucky's personal income tax rates and other relevant information is listed in the following chart. See FindLaw's Tax Law section for more articles.

Code Section 141.020, et seq.
Who is Required to File Residents, nonresidents on net income from businesses, trade, professions or other activities carried on in the state or tangible or intangible property located in the state
Rate

Kentucky has six income tax brackets:

  • $0 - $3,000: 2%
  • $3,001 - $4,000: 3%
  • $4,001 - $5,000: 4%
  • $5,001 - $8,000: 5%
  • $8,001 - $75,000: 5.8%
  • $75,001 or more: 6%
Federal Income Tax Deductible No
Federal Income Used as Basis Yes

Note: State laws are constantly changing, including laws affecting tax rates and the processes for filing taxes. If in doubt, be sure to contact a Kentucky tax attorney or conduct your own legal research to verify the state law(s) you are researching.

How to File Your Kentucky Income Tax Return

Kentucky residents and those who derived income from the state must file a state income tax return by April 15 (or whichever day the federal income tax deadline falls) of each year. You may download forms online if you choose to mail your return, or you may file online. Additionally, you may have your tax refund sent to your bank account electronically.

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