State and Local Sales Tax Rates, 2023
While many factors influence business location and investment decisions, sales taxes are something within policymakers’ control that can have immediate impacts.
11 min read
Kentucky Tax Rates, Collections, and Burdens
How does Kentucky’s tax code compare? Kentucky has a flat 4.50 percent individual income tax rate. There are also jurisdictions that collect local income taxes. Kentucky has a 5.00 percent corporate income tax rate. Kentucky has a 6.00 percent state sales tax rate and does not levy any local sales taxes. Kentucky’s tax system ranks 18th overall on our 2023 State Business Tax Climate Index.
Each state’s tax code is a multifaceted system with many moving parts, and Kentucky is no exception. The first step towards understanding Kentucky’s tax code is knowing the basics. How does Kentucky collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures: How Does Your State Compare?
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State Corporate Income Tax Rates and Brackets for 2023
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Americans Moved to Low-Tax States in 2022
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State Tax Changes Taking Effect January 1, 2023
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