Kentucky Tax Calculators.
Tax year 2026 income tax rates, brackets, and sales tax for Kentucky. Returns for tax year 2026 are generally filed in 2027; source links and last-verified dates are shown below.Tax year 2026 means income earned during calendar year 2026; those returns are generally filed in 2027. State and local sales tax rates can change during the year, so confirm current rules before filing or remitting tax.
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.