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Kentucky State Taxes


Kentucky State Taxes

Staff Reports
by Staff Reports

The Kentucky Department of Revenue administers a variety of taxes, including the personal income tax, sales and use tax, corporate income tax, and other smaller taxes. Property taxes, however, are administered on the local level.

Kentucky State Tax ― Individual Income Tax

The individual income tax rates for Kentucky are as follows:

  • 2% on the first $3,000 of taxable income
  • 3% on taxable income between $3,001 and $4,000
  • 4% on taxable income between $4,001 and $5,000
  • 5% on taxable income between $5,001 and $8,000
  • 5.8% on taxable income between $8,001 and $75,000
  • 6% on taxable income of $75,001 or more

Kentucky State Tax ― Corporate Tax

All corporations doing business in Kentucky are subject to the corporate income tax (unless specifically exempted by law). The tax rates are as follows:

  • 4% on the first $50,000
  • 5% on taxable income between $50,001 and $100,000
  • 6% on taxable income of $100,001 or more

Kentucky State Tax ― Sales & Use Tax

The state sales tax is 6% on the retail sales of tangible personal property in Kentucky. The consumer use tax is a component of the sales tax ― it has the same rate (6%) and applies to the use, storage or consumption of goods in Kentucky for which proper sales tax was not paid.

Kentucky State Tax ― Property Tax

Property tax is a local tax, assessed and collected by county officials. All real and personal property is taxed based on its fair cash value. For more information about property tax, visit the Department of Revenue website or contact your local tax assessor.

Kentucky State Tax Forms

Form 740 (Kentucky Individual Income Tax Return)
Form 740-EZ (Kentucky Individual Income Tax Return – Short Form)
Form 740-NP (Kentucky Individual Income Tax Return – Nonresident or Part-Year Resident)
Form 740-X (Amended Kentucky Individual Income Tax Return)
Form 740-ES (Estimated Individual Income Tax Vouchers)
Form 51A113(O) (Consumer Use Tax Return)
Form 720 (Kentucky Corporation Income Tax and LLET Return)

Kentucky State Tax Resources

Kentucky Department of Revenue: revenue.ky.gov

All Kentucky tax forms: revenue.ky.gov/forms

Kentucky Department of Revenue “E-Filing and E-Payment Options” center: revenue.ky.gov/etax

Kentucky Board of Tax Appeals: www.kbta.ky.gov

Kentucky Property Tax portal: revenue.ky.gov/Property+Tax

Kentucky Cabinet for Economic Development: www.thinkkentucky.com