Kentucky Tax Overview
Kentucky moved to a flat income tax rate of 4.0% in 2024, reduced from 4.5%, as part of a phased plan to potentially eliminate the income tax entirely. The state triggers further rate reductions when revenue benchmarks are met. Kentucky has moderate property taxes but a relatively high sales tax rate of 6%.
Kentucky Tax Quick Facts (2026)
| Income Tax | flat (top rate: 4.0%) |
| Sales Tax (State) | 6.00% |
| Property Tax (Avg Effective) | 0.83% |
| Median Household Income | $57,727 |
| Capital | Frankfort |
| Population | 4.5 million |
Frequently Asked Questions About Kentucky Taxes
Does Kentucky have a state income tax?+
Yes, Kentucky has a flat income tax system with a top marginal rate of 4.0%.
What is the property tax rate in Kentucky?+
The average effective property tax rate in Kentucky is approximately 0.83% of assessed home value. On a $300,000 home, that is about $2,490 per year.
What is the sales tax rate in Kentucky?+
The state sales tax rate in Kentucky is 6.00%. Local jurisdictions may add additional sales tax.
What is the median household income in Kentucky?+
The median household income in Kentucky is approximately $57,727 per year.
How does Kentucky's tax burden compare to other states?+
Kentucky's total tax burden depends on income tax, property tax, and sales tax combined. Use the calculator above to compare your specific situation.
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James Whitfield, CPA, MST
James Whitfield is a Certified Public Accountant with a Master of Science in Taxation. He specializes in US federal and state tax calculations and ensures all tax-related tools meet current IRS guidelines. Last updated: April 2026. Uses 2026 tax year data from state revenue departments and IRS publications.