Taxes in Kentucky

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 rank?  Below, we have highlighted a number of tax rates, ranks, and measures detailing Kentucky’s income tax, business tax, sales tax, and property tax systems. Click the tabs below to explore!

Top Individual Income Tax Rate

5%

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State and Local Individual Income Tax Collections per Capita

$1271

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State and Local Tax Burden

9.5%

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Top Corporate Income Tax Rate

5%

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State Business Tax Climate Index Ranking

23

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State Sales Tax Rate

6.00%

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Combined State and Average Local Sales Tax Rate

6.00%

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State and Local General Sales Tax Collections per Capita

$784

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State Gasoline Tax Rate (cents per gallon)

26.00¢

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State Cigarette Tax Rate (dollars per 20-pack)

$1.10

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Property Taxes Paid as a Percentage of Owner-Occupied Housing Value

0.79%

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State and Local Property Tax Collections Per Capita

$775

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Featured Articles

State Tax Changes Effective July 1, 2020

July 9, 2020

A Visual Guide to Unemployment Benefit Claims

April 2, 2020

Facts and Figures 2020: How Does Your State Compare?

February 13, 2020

Tax Trends at the Dawn of 2020

January 6, 2020

Local Income Taxes in 2019

July 30, 2019

State Tax Changes as of July 1, 2019

July 11, 2019


Related Articles

State Tax Changes Effective July 1, 2020

April 17th Morning State Tax Update

April 10th Afternoon State Tax Update

Kentucky Legislature Passes Flawed Excise Tax on Vapor Products

April 2nd Evening State Tax Update

A Visual Guide to Unemployment Benefit Claims

March 27th Morning State Tax Update

Facts and Figures 2020: How Does Your State Compare?

Tax Trends at the Dawn of 2020

Does Your State Have a Corporate Alternative Minimum Tax?

Local Income Taxes in 2019

State Tax Changes as of July 1, 2019

On Gas Taxes, Kentucky Kicks the Can Down the Road

Easing the Kentucky Combined Reporting Transition

Facts and Figures 2019: How Does Your State Compare?

2019 State Business Tax Climate Index

State Tax Changes Taking Effect July 1, 2018

Kentucky Legislature Overrides Governor’s Veto to Pass Tax Reform Package

Updated Kentucky Tax Reform Package Would Boost State from 33rd to 18th on the State Business Tax Climate Index (Updated)

Kentucky Needs Tax Reform, Not Cigarette Tax Hikes