Regular readers of Tax Foundation reports know that we publish estimates of the distributional impact of federal tax changes: that is, we estimate how a tax reform might affect the after-tax incomes of taxpayers at...
The facts on Kentucky’s Tax Climate
6%individual income taxTop rate
6%corporate income taxTop rate
$732property taxcollections per capita
Kentucky's Individual Income Tax System
Kentucky's individual income tax system consists of six brackets with a top rate of 6%. The top rate ranks 19th highest among states levying an individual income tax. Kentucky's state and local tax collections per person were $1,111 in 2013, which ranked 20th highest nationally.
50-State Table of Individual Income Tax Rates
Kentucky's Corporate Income Tax System
Kentucky's corporate income tax system consists of three brackets with a top rate of 6%. The top rate ranks 32nd highest among states levying a corporate income tax. Kentucky's state and local corporate income tax collections per person were $175 in 2013 which ranked 13th highest nationally.
50-State Table of Corporate Income Tax Rates
Kentucky Sales and Excise Taxes
Kentucky levies a 6% general sales or use tax on consumers, which is above the national median of 5.95%. Kentucky does not levy additional local sales taxes. Kentucky's state and local governments collect $687 per person in general sales taxes and $601 per person in excise taxes, for a combined figure of $1,288, which ranks 36th highest nationally. Kentucky's gasoline tax stands at 26 cents per gallon, 30th highest nationally, while its cigarette tax stands at $0.60, 41st highest nationally.
50-State Table of State and Local Sales Tax Rates
Kentucky Property Tax Collections Relatively Low
Kentucky's state and local governments collected approximately $732 per person in property taxes in 2013, which ranks 46th nationally.
Tax Freedom Day Arrives on April 11th in Kentucky
Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, Kentucky taxpayers have to work until April 11th (8th earliest nationally) to pay their total tax bill.
Kentucky's State and Local Tax Burden is 24th Highest
Kentucky's 2016 Business Tax Climate Index Ranks 28th
Kentucky ranks 28th on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (29th), individual income taxes (30th), sales taxes (9th), unemployment insurance taxes (46th), and taxes on property (23rd), including residential and commercial property.
State Business Tax Climate Index (full study)
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