Kentucky

 
 

The facts on Kentucky’s Tax Climate

Kentucky's Individual Income Tax System
Kentucky's personal income tax system consists of six brackets and a top rate of 6%. That rate ranks 20th highest among states levying an individual income tax. Kentucky's income tax collections per person were $967 in 2010 which ranked 17th highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita

Kentucky's Corporate Income Tax System
Kentucky's corporate income tax system consists of three brackets and a top rate of 6%. That rate ranks 17th lowest among states levying an corporate income tax. Kentucky's corporate tax collections per person were $111 in 2010 which ranked 22nd highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita

Kentucky Sales and Excise Taxes
Kentucky levies a 6% general sales or use tax on consumers, which is the same as the national median of 6%. Kentucky's state and local governments collect $645 per person in general sales taxes and $563 per person in excise taxes, for a combined figure of $1208, which ranks 14th lowest nationally. Kentucky's gasoline tax stands at 29.9¢ (18th highest nationally), while its cigarette tax stands at $0.6 (12th lowest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita

Kentucky Property Tax Collections Relatively Low
Kentucky's state and local governments collected approximately $684 per person in property taxes, which ranks 5th lowest nationally.
State and local property tax collections per capita by state

Tax Freedom Day Arrives on April 6th in Kentucky

Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2013, Kentucky taxpayers worked until April 6th (10th earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Illinois, April 25th (ranked 5th latest nationally); Indiana, April 13th (ranked 25th earliest nationally); Ohio, April 12th (ranked 22nd earliest nationally); West Virginia, April 19th (ranked 13th latest nationally); Virginia, April 20th (ranked 10th latest nationally); Tennessee, April 2nd (ranked 3rd earliest nationally); and Missouri, April 8th (ranked 14th earliest nationally).

Full study of Tax Freedom Day, nationwide and in each state

Kentucky's State and Local Tax Burden Below National Average

Kentucky's 2010 tax burden of 9.36% ranks 25th lowest out of 50 states, and is below the national average of 9.9%. Kentucky's taxpayers pay $3027 per capita in state and local taxes.
Kentucky's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009

Kentucky's 2013 Business Tax Climate Index Ranks 24

Kentucky ranks 24th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Illinois, 29th, Indiana, 11th, Ohio, 39th, West Virginia, 23rd, Virginia, 27th, Tennessee, 15th, and Missouri, 16th.
50-State Comparison of Business Tax Climates (data only)
2013 State Business Tax Climate Index (full study)

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