Kentucky Paycheck Calculator 2026: Take-Home Pay

	Per paycheck	Per month	Per year
Gross pay	$2,500.00	$5,416.67	$65,000.00
401(k) contribution	$125.00	$270.83	$3,250.00
Federal income tax	$201.15	$435.83	$5,230.00
Social Security	$155.00	$335.83	$4,030.00
Medicare	$36.25	$78.54	$942.50
Kentucky income tax	$78.60	$170.30	$2,043.65
Take-home pay	$1,903.99	$4,125.32	$49,503.85

Kentucky paycheck taxes at a glance

Income tax on wages	Flat 3.5%
Minimum wage (2026)	$7.25 an hour (tipped employees at least $2.13 an hour plus tips)

Local taxes: Most Kentucky cities and counties levy occupational license taxes on wages (e.g. Louisville about 2.2%, Lexington 2.25%).

Example: a $66,400 salary in Kentucky

The median household income in Kentucky is about $66,447 (2025 data). Here's what one earner with that salary, paid every two weeks, filing single with no pre-tax deductions, would see on each paycheck in 2026:

Gross pay	$2,553.85
Federal income tax	−$222.62
Social Security	−$158.34
Medicare	−$37.03
Kentucky income tax	−$84.86
Take-home pay	$2,051.00

That's $53,326 a year in take-home pay, or 19.7% of gross pay going to taxes.

Take-home pay by salary in Kentucky

Single filer, paid biweekly, standard W-4, no pre-tax deductions:

Salary	Per paycheck	Per year	State taxes	Total tax rate
$40,000	$1,270.68	$33,038	$1,282	17.4%
$60,000	$1,861.83	$48,408	$1,982	19.3%
$80,000	$2,401.06	$62,428	$2,682	22%
$100,000	$2,915.29	$75,798	$3,382	24.2%
$150,000	$4,179.18	$108,659	$5,132	27.6%
$200,000	$5,463.25	$142,045	$6,882	29%

What changed for 2026

The individual income tax rate fell from 4% to 3.5% for tax years beginning January 1, 2026, under HB 1 of 2025.
The standard deduction rose from $3,270 to $3,360. The Department of Revenue has already announced a 2027 standard deduction of $3,470.

Kentucky pay rules worth knowing

Employers must pay at least twice a month, and each payday must cover wages earned up to no more than 18 days before it.
Whether you quit or are fired, your final wages are due by the later of your next normal payday or 14 days after you leave.

A flat rate that keeps stepping down

Kentucky taxes income at a single flat rate, and it has been lowering that rate: from 4% in 2025 to 3.5% in 2026. The law allows further reductions only when budget conditions written into the statute are met, so there’s no guaranteed timetable after 2026.

The standard deduction is modest and indexed to inflation: $3,360 for 2026 and $3,470 for 2027. A single worker earning $60,000 has about $56,640 taxed at 3.5%, about $1,982 for the year. At 2025’s 4% rate and $3,270 deduction, the same pay would have cost about $2,269, so the change is worth about $287 a year.

Low-income households can also get the Family Size Tax Credit, which reduces or eliminates Kentucky tax for families with income near the poverty line. The calculator applies it where it eliminates tax entirely.

Local occupational license taxes

The bigger local story in Kentucky is the occupational license tax. Many Kentucky cities and counties tax wages earned within their boundaries, and employers withhold these taxes from your paycheck alongside state tax. They’re based on where you work, and in some places both a city and a county tax apply.

Lexington-Fayette Urban County Government, for example, charges 2.25% on compensation earned in Lexington. That’s close to two-thirds of the state’s 3.5% rate. Louisville Metro and many smaller cities and counties have their own rates.

The calculator doesn’t include local taxes automatically. Add your combined city and county rate in the Local income tax rate field to see the full effect on your take-home pay.

Living in a neighboring state

Kentucky has reciprocity with five states: Illinois, Indiana, Michigan, West Virginia and Wisconsin. Residents of those states who work in Kentucky can file Form 42A809 with their employer to stop Kentucky withholding. Virginia residents qualify if they commute daily to work in Kentucky. Ohio residents qualify unless they own 20% or more of an S corporation. Reciprocity covers state income tax only, not local occupational taxes.

The income tax calculator estimates your full-year federal tax, and the salary calculator converts hourly pay to annual figures.

Estimates only. Your employer’s payroll system, your W-4 and your Form K-4 determine your actual paycheck.

How we calculate: The Family Size Tax Credit is modeled only where it forgives all tax; its partial credit just above the threshold is not.

Sources

Frequently asked questions

What is Kentucky's income tax rate in 2026?

A flat 3.5% on taxable income after the $3,360 standard deduction. It was 4% in 2025. Kentucky's law allows further cuts in later years only if budget conditions set out in the statute are met.

How much does the rate cut save?

Half a percentage point of taxable income. A single worker earning $60,000 pays about $287 less Kentucky income tax for 2026 than they would have at 2025's rate and deduction.

What is an occupational license tax?

It's a local tax on wages earned in a Kentucky city or county, withheld by your employer along with state tax. Rates vary by place. Lexington-Fayette Urban County Government charges 2.25% on compensation earned there.

I live in Indiana and work in Kentucky. Do I pay Kentucky income tax?

No. Kentucky has reciprocity with Illinois, Indiana, Michigan, West Virginia and Wisconsin, so residents of those states can give their employer Form 42A809 to stop Kentucky withholding. Virginia residents qualify only if they commute daily, and Ohio residents qualify unless they own 20% or more of an S corporation. Local occupational taxes still apply.

What is the minimum wage in Kentucky?

$7.25 an hour, the same as the federal rate. Tipped employees who receive more than $30 a month in tips can be paid $2.13 an hour as long as tips make up the difference.

Facts verified November 6, 2026. Estimates only; your employer's payroll system and your W-4 determine your actual withholding.

Your paycheck

2026 paycheck totals