Kentucky paycheck calculator

What's different about a Kentucky paycheck

At Kentucky's median wage — $22.56 an hour, or about $46,920 a year (BLS, May 2025) — a single filer paid biweekly keeps about $1,475.22 per paycheck. Over the year that's $3,450 federal income tax, $3,589 Social Security and Medicare, and $1,525 Kentucky income tax, before 401(k), insurance, or the items below. Source: BLS OEWS May 2025 — Kentucky, all occupations

Local income taxes

Many Kentucky cities and counties, and some school districts, levy occupational license taxes on wages, withheld by employers at locally set rates. You can owe both a city and a county tax on the same pay (larger counties generally credit the city tax against the county one), and these local taxes can apply to 401(k) and other pre-tax contributions that state tax excludes. Source: KRS 67.750, Definitions for KRS 67.750 to 67.790

Working across state lines

Kentucky exempts the wages of nonresidents who live in Illinois, Indiana, Michigan, West Virginia, or Wisconsin; Virginia residents qualify only if they commute daily, and Ohio residents unless they own 20% or more of the S corporation that employs them. The employee files Form K-4 with the employer to stop Kentucky withholding. Source: Kentucky DOR Form K-4

Bonuses and other supplemental pay

Kentucky has no flat bonus rate: supplemental pay is added to regular wages and withheld on the total — in practice 3.5% once annual wages exceed the $3,360 standard deduction. Source: 103 KAR 18:070

State withholding form

Form K-4 (42A804) — Kentucky's Withholding Certificate, filed with your employer alongside the federal W-4.

How this is calculated

Net pay in Kentucky = gross salary minus federal withholdings minus Kentucky income tax. Federal income tax, Social Security, and Medicare use the 2026 IRS and SSA figures (Rev. Proc. 2025-32), computed exactly as on the main paycheck calculator. Kentucky levies a flat 3.5% income tax — HB 1 cut the rate from 4.0% to 3.5% effective January 1, 2026 — after a flat $3,360 standard deduction (Kentucky has no personal exemption). Local occupational taxes, credits, and pre-tax items are not modeled.

The 2026 federal income tax, Social Security, and Medicare method, step by step

Sources

• IRS — Tax year 2026 inflation adjustments (Rev. Proc. 2025-32)(opens in a new tab)
• SSA — Social Security contribution and benefit base(opens in a new tab)
• Tax Foundation — 2026 State Individual Income Tax Rates and Brackets(opens in a new tab)
• Kentucky Department of Revenue(opens in a new tab)

Frequently asked questions

What is the Kentucky state income tax rate for 2026?

Kentucky has a flat 3.5% income tax for 2026. House Bill 1 cut the rate from 4.0% to 3.5% effective January 1, 2026, part of a phased plan that has lowered Kentucky from a 5% flat rate in 2022.

Does Kentucky have local income taxes?

Yes. Many Kentucky cities and counties levy a local occupational (payroll) tax, often around 1–2.5%, collected separately from the state tax. This calculator shows the state 3.5% only and does not include local occupational taxes.

How much of a median Kentucky paycheck goes to taxes?

Kentucky's median wage is about $46,920 a year ($22.56 an hour, BLS May 2025). For a single filer paid biweekly in 2026 that is about $3,450 federal income tax, $3,589 Social Security and Medicare, and $1,525 Kentucky income tax a year, leaving about $1,475.22 per paycheck — before 401(k), insurance, local income taxes, or any state payroll programs.

Does Kentucky have a tax reciprocity agreement with other states?

Kentucky exempts the wages of nonresidents who live in Illinois, Indiana, Michigan, West Virginia, or Wisconsin; Virginia residents qualify only if they commute daily, and Ohio residents unless they own 20% or more of the S corporation that employs them. The employee files Form K-4 with the employer to stop Kentucky withholding.

How are bonuses withheld in Kentucky?

Kentucky has no flat bonus rate: supplemental pay is added to regular wages and withheld on the total — in practice 3.5% once annual wages exceed the $3,360 standard deduction.