Kentucky Tax Calculators.
2025 income tax rates, brackets, and sales tax for Kentucky. Free calculators with Kentucky-specific defaults.Income Tax
Kentucky has a flat income tax rate of 4.0% on all taxable income, reduced from 4.5% in 2024. Further reductions are possible if revenue triggers are met. Kentucky previously had a progressive system.
| Taxable Income | Rate |
|---|---|
| All taxable income | 4.0% |
Sales Tax
Groceries are exempt from sales tax. Prescription drugs are exempt.
Kentucky's 4.0% flat rate is slightly below the national average, and its uniform 6% sales tax has no local add-ons, keeping the combined rate predictable.
What is Kentucky's income tax rate?
Kentucky has a flat income tax rate of 4.0% on all taxable income. This was reduced from 4.5% in 2024 as part of ongoing tax reform.
Does Kentucky tax groceries?
No, groceries (unprepared food) are exempt from Kentucky's 6% sales tax.
Will Kentucky's tax rate decrease further?
Potentially yes. Kentucky law allows the rate to drop by 0.5% increments if state revenue and budget reserves meet certain thresholds. The ultimate goal is to eventually eliminate the income tax.