How your paycheck is taxed in Kentucky
A Kentucky paycheck is reduced by federal income tax, Social Security (6.2%), Medicare (1.45%), and a flat 3.5% state income tax. The federal side uses the 2026 standard deduction of $16,100 (single) or $32,200 (joint) and seven brackets from 10% to 37%. The state side is described below. Kentucky's standard deduction is per return, and joint filers combine their income, so married couples often file separately on a combined return.
Kentucky's table is based on the 2026 schedule and is marked estimated; see the notes below for what may differ in 2026.
Formula
Net pay = Gross pay - Pre-tax deductions - Federal income tax - Social Security - Medicare - Kentucky income tax - After-tax deductions. Federal taxable income is gross minus pre-tax deductions minus the standard deduction. Kentucky taxable income is wages minus the state standard deduction.
Kentucky income tax rate for 2026
| Item | Amount |
|---|---|
| Tax rate (all filing statuses) | 3.5% |
| Standard deduction, single | $3,270 |
| Standard deduction, married filing jointly | $6,540 |
Kentucky's flat rate drops from 4.0% to 3.5% for 2026 under House Bill 1 (2025). The standard deduction is the 2025 amount; 2026 indexing is not applied.
Local taxes in Kentucky
Most Kentucky cities and counties charge an occupational license tax on wages, typically 1% to 2.5% (Louisville 2.2%, Lexington 2.25%). Local taxes are not included in the estimate above; check your pay stub for a city or county line and subtract it from the net pay shown.
Worked examples: single filer, paid biweekly
Each row is a single filer with no pre-tax deductions, using the 2026 federal tables and the Kentucky rules above. The $75,000 example: federal taxable income is $58,900 after the $16,100 standard deduction, giving $7,670.00 of federal tax (10% on the first $12,400, 12% up to $50,400, 22% on the rest). Social Security is 6.2% of $75,000 = $4,650.00, Medicare is 1.45% = $1,087.50, and Kentucky tax on $71,730 of state taxable income is $2,510.55. Net pay is $59,081.95 a year, or $2,272.38 every two weeks.
| Salary | Federal tax | Social Security | Medicare | Kentucky tax | Net per year | Net per paycheck |
|---|---|---|---|---|---|---|
| $50,000 | $3,820 | $3,100 | $725 | $1,636 | $40,719 | $1,566.13 |
| $75,000 | $7,670 | $4,650 | $1,088 | $2,511 | $59,082 | $2,272.38 |
| $100,000 | $13,170 | $6,200 | $1,450 | $3,386 | $75,794 | $2,915.17 |
Effective total tax rates in these examples run from 18.6% at $50,000 to 24.2% at $100,000. Married filers with the same household income pay less federal tax because the joint standard deduction and brackets are twice as wide.
How a flat tax changes with income
Because every dollar of taxable income is taxed at 3.5%, Kentucky tax rises in a straight line once you are past the deduction and exemption. In the examples above it is $1,636 at $50,000 (3.27% of gross), $2,511 at $75,000 (3.35%), and $3,386 at $100,000 (3.39%). The federal side is what makes the total effective rate climb faster than that, since federal brackets step from 12% to 22% at $50,400 of taxable income and to 24% at $105,700.
Hourly pay in Kentucky
Hourly workers are annualized the same way: rate x hours per week x 52. At $20 an hour for 40 hours, gross pay is $41,600 a year or $800 a week. Federal income tax is $54.08 a week, Social Security $49.60, Medicare $11.60, and Kentucky tax $25.80, leaving $658.92 per weekly paycheck. Overtime raises the annualized figure and can push a few dollars into the next federal bracket, but only those dollars are taxed at the higher rate.
Married filing jointly on $75,000
A married couple filing jointly with $75,000 of combined wages gets the $32,200 joint standard deduction and brackets twice as wide, so federal income tax falls to $4,640.00 from $7,670.00 for a single filer, and Kentucky tax is $2,396.10 instead of $2,510.55. Social Security and Medicare do not change with filing status. Take-home pay for the couple is $62,226.40 a year, or $2,393.32 per biweekly paycheck.
Estimates for 2026 using federal and state tables; local taxes, benefits, and credits vary. Not tax advice. Compare other states on the national paycheck calculator.