Kentucky Income Tax Rate 2025
Kentucky has a flat income tax rate of 4% on all taxable income, regardless of how much you earn. The state transitioned from a progressive system to a flat tax in recent years.
Tax Type
Flat Rate
Income Tax Rate
4%
Tax Brackets
1 (flat)
How It Works
With a flat tax, your Kentucky state income tax is simply 4% of your taxable income. Kentucky fully taxes most retirement income, though it provides a partial exclusion for certain pension and retirement plan distributions. Social Security benefits are exempt from Kentucky income tax.