Kentucky has one individual income tax bracket with a flat rate of 4.5%. Below you will find 2023 Kentucky tax brackets and tax rates for all four KY filing statuses. The Kentucky tax rate and tax brackets tabulated below are based on income earned between January 1, 2023 through December 31, 2023. Individual taxpayers will submit both their federal tax forms and state tax forms by April 15, 2024.
The Kentucky tax rate changed in 2018 from a progressive structure to a single flat rate of 5%. The original single rate remained at 5% through tax year 2022. For tax year 2023, the Kentucky income tax rate was reduced 0.5% to 4.5% of net income. Outlook for the 2024 Kentucky income tax rate is to be reduced further to 4% of net income.
Kentucky Income Tax Calculation For $70,000 In Wages
- Tax Year: 2023
- Filing Status: Single
- Kentucky Tax Rate: 4.5%
- Kentucky Standard Deduction: $2,980
- Kentucky Income Tax Estimate: $3,016
- Kentucky Effective Tax Rate: 4.31%
To simplify and standardize the calculation across states, we assume the taxpayer has only income from Wages, salaries, tips, etc Line 1 on federal Form 1040. Kentucky Form KY 740 begins with federal adjusted gross income, 1040 Line 11. That means we must subtract the state standard deduction amount of $2,980 from our 2023 wages. The result is our Kentucky taxable income, which we can then multiply by the 2023 Kentucky tax rate of 4.5%.
Kentucky Income Tax = ( $70,000 - $2,980 ) × 4.5% = $3,016
To calculate the effective income tax rate for the state of Kentucky, we simply divide the previously calculated income tax estimate by our initial $70,000 in wages.
Kentucky Effective Tax Rate = $3,016 ÷ $70,000 = 4.31%
The actual amount of income tax you will pay in the state of Kentucky will vary. Kentucky, as with other states, often allow taxpayers to make additions and subtractions to their federal taxable income. Many states also offer credits for families with children, charitable contributions, and environmental initiatives, for example.
Kentucky 2023 Income Tax Brackets by Filing Status
| Tax Bracket | Tax Rate |
|---|---|
| $0+ | 4.5% |
| Tax Bracket | Tax Rate |
|---|---|
| $0+ | 4.5% |
| Tax Bracket | Tax Rate |
|---|---|
| $0+ | 4.5% |
| Tax Bracket | Tax Rate |
|---|---|
| $0+ | 4.5% |
Please reference the Kentucky tax forms and instructions booklet published by the Kentucky Department of Revenue to determine if you owe state income tax or are due a state income tax refund. Kentucky tax forms are generally published at the end of each calendar year, which will include any last minute 2023 - 2024 legislative changes to the KY tax rate or tax brackets. The Kentucky tax brackets and tax rates calculated on this web page are to be used for illustration purposes only.
Frequently Asked Questions
Which Kentucky tax bracket am I in?
In the state of Kentucky there is just one personal income tax bracket. Every individual taxpayer is therefore in the same bracket regardless of filing status and amount.
What is the Kentucky income tax rate for 2023?
Kentucky's 2023 income tax rate is 4.5%.
What is Kentucky's marginal tax rate?
The current flat tax rate for Kentucky is 4.5%. The Kentucky marginal tax rate used in our example calculation above on this page is 4.5%. That is the tax rate applied to each additional dollar of taxable income you earn. Since Kentucky is a flat tax rate state, the nominal or official tax rate equals the marginal tax rate.
What is Kentucky's effective tax rate?
Kentucky's effective tax rate is 4.31%. Effective tax rate equals the total tax paid divided by total taxable income. Find our Kentucky tax rate calculations above on this page for more information.
How much state income tax will I pay in Kentucky?
The national average adjusted gross income (AGI) reported by the IRS each year is about $70,000. A single Kentucky taxpayer with $70,000 in wages would pay approximately $3,016 to the Kentucky Department of Revenue. Find our Kentucky tax rate calculations above on this page for more information.
Does Kentucky have a standard deduction?
Yes. Kentucky does have a standard deduction of $2,980 for Single and $5,960 for Married Filing Jointly filing statuses.
Does Kentucky have a personal exemption?
No. Kentucky does not have a personal exemption for 2023.
Does Kentucky have a dependent exemption?
No. Kentucky does not have a dependent exemption for 2023.
Is Kentucky a flat tax state?
Yes. Kentucky's state income tax rate is a flat 4.5% of your taxable income. Regardless of your income level, you will pay the same rate. There are nine flat tax rate states in the United States: Colorado,Illinois, Indiana, Kentucky,Massachusetts, Michigan, North Carolina,Pennsylvania, and Utah
Last updated: November 3, 2023
Income Tax Rates
References:
- Kentucky Revised Statutes KRS Chapter 141. Kentucky Legislative Research Commission, Kentucky General Assembly. Retrieved November 3, 2023.
- DOR Announces Updates to Individual Income Tax for 2024 Tax Year. Kentucky Department of Revenue, Commonwealth of Kentucky. Retrieved November 3, 2023.
