Kentucky Salary Paycheck Calculator
Are you interested in your take-home pay in Kentucky? Our Kentucky Salary Paycheck Calculator provides a precise estimate of your net income after deductions. Whether you’re a current resident or considering relocating to the Bay State, knowing how your paycheck is distributed can help you manage your finances effectively.
Gross To Net Calculator
The amount that remains after these deductions are considered your net pay.
Kentucky Taxes: What You Need to Know
Kentucky has a flat 4.00 percent individual income tax rate. However, they have reduced their income tax rate from 4% to 3.5% starting January 2026.
This reduction is part of a broader plan established by House Bill 8, passed in 2022. The plan aims to eliminate the state’s income tax gradually, provided certain fiscal conditions are met.
The Kentucky General Assembly has made tax code adjustments. For instance, the income tax rate was reduced from 5% to 4.5% in 2023 and 4% in 2024. However, due to unmet fiscal conditions in 2025, the rate will remain at 4%.
The Kentucky Department of Revenue has updated the standard deduction for the 2025 tax year. Tax relief provisions have also been made in response to recent federal disaster declarations affecting Kentucky counties.
They have also made significant strides in fiscal responsibility, growing the state’s reserve from $0 to over $5 billion over the past decade. This has been achieved while stabilizing pension systems, making historic investments in education, and reducing the income tax rate.
An overview of the Kentucky taxes
Federal, State, and Local Tax Withholding
1. Federal Income Tax: Withheld based on your income, filing status, and the information provided on your W-4 form.
2. State Income Tax: Kentucky’s flat rate of 4.5%.
3. Local Taxes: Vary by locality and are often a percentage of your wages.
FICA & State Insurance Taxes
1. Social Security Tax: 6.2% of your wages.
2. Medicare Tax: 1.45% of your wages. An additional 0.9% applies to earnings over $200,000 for single filers and $250,000 for married couples filing jointly.
3. State Disability Insurance Tax: Varies by state.
4. State Unemployment Insurance Tax: Varies by state.
5. State Workers Compensation Insurance Tax: Varies by state.
Pre-Tax Deductions
1. Medical Insurance: Premiums are often deducted before taxes.
2. 401(k) Contributions: Contributions are made pre-tax, reducing your taxable income.
3. Health Savings Account (HSA): Contributions are pre-tax.
Median household income in Kentucky
In 2023, the median household income in Kentucky was 61,980 U.S. dollars, a slight increase from the previous year’s 55,880 U.S. dollars.
Let’s take a glance of Kentucky tax types and their rates
| Tax Type | Rate/Amount |
| Individual Income Tax | 4.00% (flat rate) |
| Corporate Income Tax | 5.00% |
| State Sales Tax | 6.00% |
| Local Sales Tax | None |
| Effective Property Tax Rate | 0.74% (on owner-occupied housing value) |
| Inheritance Tax | Yes |
| Gas Tax | $0.30 per gallon |
| Cigarette Excise Tax | $1.10 per pack |
| State and Local Tax Collections per Capita | $5,945 |
| State and Local Debt per Capita | $12,020 |
| Funded Ratio of Public Pension Plans | 50% |
Kentucky Tax Brackets 2024
For 2024, the standard deduction in Kentucky is set at $3,160, with a tax rate of 4% applied to taxable income
Let’s examine with an example Calculation:
Assuming a monthly wage of $3,500:
- Calculate Annual Wages:
$3,500 x 12 = $42,000 - Determine Kentucky Taxable Wages:
$42,000 – $3,160 = $38,840
This results in Kentucky taxable wages of $38,840, which will be subject to the 4% tax rate.
Here’s a table summarizing the tax information for different filing statuses if you earn $50,000 a year living in Kentucky:
| Filing Status | Federal Taxes | Marginal Tax Rate | Effective Tax Rate | Federal Income Tax | State Taxes | Marginal Tax Rate | Effective Tax Rate | State Income Tax | Total Income Tax | After-Tax Income |
| Single | 12% | 8.24% | $4,118 | 5% | 4.65% | $2,325 | $6,443 | $43,557 | ||
| Married | 12% | 4.47% | $2,236 | 5% | 4.2% | $2,100 | $4,336 | $45,664 | ||
| Head of Household | 12% | 6.38% | $3,190 | 5% | 4.2% | $2,100 | $5,290 | $44,710 |
Frequently Asked Questions
Yes, the KEKA Paycheck Calculator can account for local taxes, which vary by locality. You should input any applicable local tax rates to get a more accurate paycheck estimate.
Yes, in Kentucky, you should consider the standard deduction of $3,160 for the 2024 tax year. Additionally, any pre-tax deductions such as medical insurance premiums or retirement contributions (like a 401(k)) can also reduce your taxable income.
Yes, the KEKA Paycheck Calculator is regularly updated to reflect the most current tax laws, including recent changes to state income tax rates and standard deductions. For the latest updates, always check the calculator before making calculations.
Kentucky has a flat income tax rate of 4.00%, which differs from federal tax rates that vary based on income brackets. While federal tax deductions can be more complex due to varying rates and brackets, Kentucky’s straightforward flat rate simplifies state income tax calculations.
To account for multiple jobs or additional income, calculate each job’s paycheck separately and then sum the results. Make sure to consider that your overall tax liability may change with combined incomes. For precise estimates, input all applicable deductions for each job.
The KEKA Paycheck Calculator allows you to include pre-tax deductions such as health insurance premiums and retirement contributions. Simply enter these amounts in the respective fields to see their impact on your taxable income and take-home pay.
When using the KEKA Paycheck Calculator, select the “Married Filing Jointly” option. This will apply the appropriate tax rates and deductions for your combined income. Make sure to input both spouses’ incomes to get an accurate estimate of your joint tax liability and net pay.
