Kentucky Taxes 2025
Complete tax guide and OBBBA calculator for KY residents
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Kentucky Tax Overview 2025
State Income Tax
4%
Flat rate structure
Combined Sales Tax
6.00%
State 6.00% + Local 0.00%
Avg Property Tax
0.86%
Near-average property taxes
💼 Kentucky Income Tax 2025
Kentucky has a flat income tax rate of 4%.
When filing your Kentucky state tax return, your income tax liability depends on your taxable income and filing status. Kentucky uses a flat income tax structure.
Kentucky Income Tax Quick Facts
🛒 Kentucky Sales Tax 2025
Kentucky's combined average sales tax rate is 6.00%, which includes both state and local components. The state sales tax rate is 6.00%, while local jurisdictions add an average of 0.00%.
Sales Tax Breakdown
💡 Tip: Local sales tax rates vary by city and county. Your actual rate may be higher or lower depending on where you shop.
🏠 Kentucky Property Tax 2025
Kentucky's average effective property tax rate is 0.86%. Near-average property taxes.
Property taxes in Kentucky are assessed at the local level by counties and municipalities. Rates can vary significantly between jurisdictions.
Example Annual Property Tax
| Home Value | Est. Annual Tax | Monthly |
|---|---|---|
| $250,000 | $2,150 | $179 |
| $400,000 | $3,440 | $287 |
| $600,000 | $5,160 | $430 |
OBBBA Tax Benefits for Kentucky Residents
Kentucky's moderate taxes make OBBBA deductions valuable for overall savings.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several new federal tax deductions that Kentucky residents can claim starting with their 2025 tax returns.
Available OBBBA Deductions for KY Residents:
Calculate Your Kentucky Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Kentucky resident.
Calculate My SavingsHow Kentucky Compares
| Tax Type | KY Rate | US Average | Comparison |
|---|---|---|---|
| Income Tax (Top Rate) | 4% | 5.1% | Varies |
| Sales Tax | 6.00% | 7.12% | Below Avg |
| Property Tax | 0.86% | 1.10% | Below Avg |
Frequently Asked Questions
What is the income tax rate in Kentucky?
Kentucky has a flat income tax with rates of 4%. Kentucky has a flat income tax rate of 4%.
What is the sales tax in Kentucky?
The combined average sales tax rate in Kentucky is 6.00%. This includes the state rate of 6.00% plus an average local rate of 0.00%.
How do OBBBA deductions benefit Kentucky residents?
Kentucky's moderate taxes make OBBBA deductions valuable for overall savings. Kentucky residents can claim tips, overtime, auto loan interest, SALT, and senior bonus deductions on their federal returns.
When are Kentucky taxes due?
For tax year 2025, Kentucky state taxes are due on April 15, 2026, the same date as federal taxes. Extensions may be available if you need more time to file.