Kentucky (KY) Tax Rates — 2026

Income Tax 4%

Sales Tax 6%

Property Tax 0.8%

Income Tax

Type: Flat rate — 4% on all taxable income

Standard Deduction: Single: $3,160 | Married Filing Jointly: $6,320

Sales Tax

State Rate6%

Avg Local Rate0%

Combined Rate6%

Groceries: Exempt

-0.57% vs national avg

Property Tax

Effective Rate0.8%

Median Annual Tax$1,320

-0.27% vs national avg (1.07%)

Retirement Income Tax

Social SecurityNO

PensionsPARTIAL

401(k) / IRAYES

Estate & Inheritance Tax

Has Estate Tax: NO

Corporate Tax

Corporate Income Tax Rate: 5%

Additional Notes

Kentucky has a flat income tax rate. Up to $31,110 of pension/retirement income may be excluded for certain qualifying plans. Kentucky has an inheritance tax (not estate tax) on non-spouse beneficiaries.

Compare with another state:

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Best for Retirees

Sources: Kentucky Department of Revenue; Tax Foundation, Facts & Figures 2025; IRS Publication 17.