TaxGrader

Taxes in Kentucky: Income, Sales, and Property Tax Guide

Top Income Tax Rate

4.0%

Combined Sales Tax

6.0%

Avg Property Tax Rate

0.8%

Median Household Income

$60,407

How Kentucky Compares to National Average

IRS Statistics of Income Data

Average AGI

$47,200

Average Tax Liability

$5,600

Itemized Deduction Rate

23.0%

Avg SALT Deduction

$5,600

Avg Mortgage Interest Deduction

$7,500

Avg Charitable Deduction

$4,600

Source: IRS Statistics of Income (2022 tax year)

What This Means for You

With a top marginal rate of 4.0%, Kentucky's income tax is near the national median. Combined with a 6.0% sales tax and 0.8% property tax rate, the overall tax burden in Kentucky varies depending on your income, spending, and homeownership status.

Frequently Asked Questions

Does Kentucky have an income tax?

Yes, Kentucky has a state income tax with a top marginal rate of 4.0%.

What is the sales tax in Kentucky?

The combined state and local sales tax rate in Kentucky is approximately 6.0%.

How does Kentucky compare to other states?

Visit our state comparison page or use the Compare tool to see how Kentucky's tax burden compares to neighboring states and the national average.

Related Resources

Data sources: Tax Foundation (2024), IRS Statistics of Income (2022). TaxGrader is not a CPA, tax advisor, enrolled agent, or attorney. This content is for educational and informational purposes only.