State Tax in Kentucky

The state tax in Kentucky is based on six income brackets that range from 2 per cent to 6 per cent.

Income Tax Rates Are as Follows -

  • Two per cent on the first $3,000 of taxable income
  • Three per cent on taxable income between $3,001 and $4,000
  • Four per cent on taxable income between $4,001 and $5,000
  • Five per cent on taxable income between $5,001 and $8,000
  • 5.8 per cent on taxable income between $8.001 and $75,000
  • Six per cent for taxable income that is $75,001 and above


Who Must File -

  • Kentucky residents who have earned income must file state taxes in Kentucky.
  • Non-residents of Kentucky who have earned income in Kentucky must file state taxes in Kentucky.


Due Date For State Tax in Kentucky -

Taxation law maintains tax returns are due and payable on April 15th. If the 15th falls on a weekend or a holiday, then the return will be due on the next business day that follows the 15th. The interest rate on unpaid taxes is currently at 8 per cent. Extensions are available for anyone requesting them before the 15th of April. Applications can be obtained from the Kentucky state website and must be filed before April 15th.

Kentucky taxation law has a state pension exclusion that is set at $41,110 for anyone who is retired from the federal, state or local government or for anyone who receives supplemental U.S. Railroad Retirement Board benefits. There is no longer an adjustment for inflation.

Kentucky offers a family size tax credit that replaces the low-income tax credit. The eligibility numbers are adjusted each year to meet cost of living adjustments. Tax credits are as follows -

  • $10,210 for a family of one
  • $13,690 for a family of two or more people
  • $17,170 for a family of three or more people
  • $20,650 for a family of four or more people.


Kentucky tax law also allows an exclusion for all income that was earned by a military person who was killed in the line of duty. This applies to income that was earned in the year of death and the year prior to the death of the serviceman or woman.

There is also an income tax that is applied to any portion of an estate that cannot be or has not been distributed. This tax rate varies and ranges from two per cent to six per cent based on the amount of the estate left undistributed.