Kentucky Paycheck Calculator
In Kentucky for 2026, a $75,000 salary takes home about $59,085 per year after federal income tax and FICA (Social Security and Medicare), and Kentucky state income tax.
Kentucky take-home pay calculator
Take-home now: $2,272.50 per 2 weeks
Use this free Kentucky (KY) paycheck, payroll and income tax calculator to estimate your 2026 take-home pay after federal income tax, Social Security, Medicare, and Kentucky's flat 3.5% state income tax.
Adjust the calculator inputs to see the breakdown for your own Kentucky paycheck.
How Kentucky's flat 3.5% income tax hits your 2026 paycheck
Kentucky levies a flat 3.5% state income tax for 2026, applied after the state allowance/deduction for your filing status. This calculator applies that on top of federal withholding and Social Security / Medicare to estimate your Kentucky take-home pay.
For 2026, Kentucky's state standard deduction is $3,360 for single filers and $3,360 for married couples filing jointly; after that, all remaining taxable income is taxed at the single flat rate of 3.5% — Kentucky does not use graduated brackets for 2026. As a worked example, a single filer earning $60,000 pays about $1,982 in Kentucky income tax (roughly 3.3% of gross) before federal tax and FICA.
What this estimate doesn't include: Some Kentucky localities levy separate occupational/payroll taxes not included here. City, county or school-district income taxes where they apply, court-ordered deductions, union dues, and anything else your specific employer withholds are not in this figure; your pay stub is the authority on those.
Estimates only, not tax advice. The section "What this estimate doesn't include" above lists what's left out; see also our terms and the corrections log.
One rate on every taxable dollar: Kentucky's 3.5% flat tax (2026)
Kentucky applies a single flat rate to taxable wages for 2026.
| Filing | Rate |
|---|---|
| All taxable income | 3.5% |
Local income taxes in Kentucky
Kentucky cities AND counties may each levy a local 'occupational license fee' (a wage tax on gross earnings) and the two can STACK. 87 of 120 counties levied it; rates run roughly 0.5%-2.5%. Louisville/Jefferson County: 2.2% for residents (1.25% Louisville Metro + 0.2% TARC + 0.75% school board); nonresidents pay 1.45% (exempt from the 0.75% school-board portion). Lexington-Fayette: 2.25%. Withheld by employers where work is performed.
Two Kentucky payroll quirks worth knowing
- Kentucky's flat state income tax fell to 3.5% effective Jan 1, 2026 (from 4.0%), the next step in a triggered phase-down toward eventual elimination authorized by 2022 reforms and HB 1 (2025).
- Unlike most states, Kentucky has no statewide payroll insurance tax but its local occupational license fees can stack city + county on the same wages — e.g. a Louisville resident pays a combined 2.2% local wage tax on top of the 3.5% state rate.
Your paycheck vs the $64,526 Kentucky median
| Median household income (2024 (ACS 1-year estimate)) | $64,526 |
| Take-home (single filer) | ≈$51,886 |
Is overtime and tips tax-free in Kentucky? Federally yes, but Kentucky still taxes both
Qualified overtime premium pay and tips are federally deductible for 2025–2028 (OBBBA caps & rules); FICA still applies.
Kentucky state income tax: Kentucky has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only. (source: revenue.ky.gov)
- Overtime: 2025 — not deductible on your Kentucky return (still state-taxed); 2026–2028 — not deductible on your Kentucky return (still state-taxed).
- Tips: 2025 — not deductible on your Kentucky return (still state-taxed); 2026–2028 — not deductible on your Kentucky return (still state-taxed).
Related: overtime calculator · overtime by state · tips by state · tips calculator.
Beyond the paycheck: Kentucky's 6% sales tax and property tax
| Sales tax | 6% (≈6% with local) |
| Property tax | ≈0.74% — 0.74% effective rate on owner-occupied housing — below the national average, mid-range nationally. |
Kentucky stays on the federal $7.25 minimum wage in 2026
$7.25/hour (≈$15,080/year full-time). Kentucky's minimum wage equals the federal $7.25/hr; no state increase for 2026.
Kentucky paycheck FAQ
Does Kentucky have a state income tax in 2026?
Yes — a flat 3.5% on taxable wages in 2026, on top of federal tax and FICA.
Do cities or counties in Kentucky take a local income tax out of paychecks?
Kentucky cities AND counties may each levy a local 'occupational license fee' (a wage tax on gross earnings) and the two can STACK. 87 of 120 counties levied it; rates run roughly 0.5%-2.5%. Louisville/Jefferson County: 2.2% for residents (1.25% Louisville Metro + 0.2% TARC + 0.75% school board); nonresidents pay 1.45% (exempt from the 0.75% school-board portion). Lexington-Fayette: 2.25%. Withheld by employers where work is performed.
Compare a paycheck next door: Tennessee, Ohio & Indiana
| State | State income tax (2026) | Take-home on $75,000 (single) |
|---|---|---|
| Kentucky | flat 3.5% | $59,085 |
| Tennessee | no state income tax | $61,593 |
| Ohio | two brackets, 0%–2.75% | $59,914 |
| Indiana | flat 2.95% | $59,410 |
| West Virginia | five brackets, 2.11%–4.58% | $59,047 |
Those are the states next door. To see where Kentucky lands against all of them at once, our take-home pay by state study runs an identical salary at two levels, $75,000 and $100,000, through the 2026 rules of every state and DC, except Arizona, California, District of Columbia, Idaho, Maryland and Vermont, still on their 2025 tables, ranked from the most take-home pay to the least.
All state paycheck calculators →
Data compiled and maintained by Edmond Daher · Updated 2026-08-02