Income Tax
Kentucky has a flat state income tax of 4.0% as of 2024, following a phased reduction from 5%.
Individual income tax collections
1990–2025Census State Government Tax Collections (FRED KYINCTAX).
| Indicator | Kentucky | U.S. |
|---|---|---|
| Flat income tax rate (%) | 4 | 5 |
- •Kentucky has been gradually cutting its flat income tax rate each year, aiming toward zero.
Property Tax
Kentucky's effective property tax rate is about 0.83%, close to the national median.
State-level property tax collections
1990–2025Census State Government Tax Collections; excludes local property taxes (FRED KYPROPTAX).
| Indicator | Kentucky | U.S. |
|---|---|---|
| Effective property tax (%) | 0.83 | 0.9 |
Sales Tax
Kentucky's state sales tax rate is 6.0%, with no additional local sales taxes, making it simpler than most states.
General sales tax collections
1990–2025Census State Government Tax Collections (FRED KYSALESTAX).
| Indicator | Kentucky | U.S. |
|---|---|---|
| Sales tax (%) | 6 | 7.1 |
Tax Burden
Kentucky's overall tax burden is moderate, with a flat income tax and relatively low property taxes.
State tax collections per resident
1990–2025Census tax collections (KYTOTLTAX) divided by Census resident population (KYPOP).
| Indicator | Kentucky | U.S. |
|---|---|---|
| Tax burden (%) | 9 | 9.9 |
Tax Revenue
Kentucky's tax revenue relies heavily on sales and income taxes, with coal severance tax revenue declining alongside the industry.
State tax collections
1990–2025Census Annual Survey of State Government Tax Collections, fiscal years (FRED KYTOTLTAX).