Kentucky Income Tax Rates 2025
Kentucky has a flat income tax rate of 4% on all taxable income, regardless of how much you earn. The state transitioned from a progressive system to a flat tax in recent years.
Tax Type
Flat
Rate Range
4% flat
Brackets
1
Calculate your full tax picture
Kentucky is only part of the equation — federal taxes apply too.
State Tax Ranking
At $75,000 income (single filer), Kentucky ranks #20 out of 51 states — where #1 is the lowest tax burden.
Best states to move to from Kentucky →Tax at Different Income Levels
| Income | State Tax | Effective Rate | Take-Home |
|---|---|---|---|
| $50,000 | $2,000 | 4.00% | $44,129 |
| $75,000 | $3,000 | 4.00% | $64,051 |
| $100,000 | $4,000 | 4.00% | $82,551 |
| $150,000 | $6,000 | 4.00% | $118,933 |
| $200,000 | $8,000 | 4.00% | $154,933 |
Single filer, standard deduction, 2025 tax year. Take-home is after federal + state income tax (excludes FICA).
Tax Overview
This state uses a flat income tax rate, meaning the same percentage applies to all taxable income regardless of how much you earn. This simplifies tax planning but means there is no bracket benefit for lower earners. The effective rate is very close to the headline rate after deductions.
Tax Planning Tip
With a flat tax rate, your effective state rate is predictable and consistent. Focus tax reduction on pre-tax contributions (401k, HSA) and any state-specific deductions or credits available.
With a flat tax, your Kentucky state income tax is simply 4% of your taxable income. Kentucky fully taxes most retirement income, though it provides a partial exclusion for certain pension and retirement plan distributions. Social Security benefits are exempt from Kentucky income tax.
Property Tax & Cost of Living
Property tax rate is the state average effective rate. Actual rates vary by county. COL index from BEA Regional Price Parities.
Explore Kentucky taxes
Frequently asked questions
What is Kentucky's income tax rate in 2025?
Kentucky has a flat income tax rate of 4% on all taxable income, regardless of how much you earn.
Does Kentucky tax Social Security benefits?
Kentucky does not tax Social Security benefits at the state level.