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Kentucky Overtime Calculator 2026

Calculate your Kentucky take-home pay including overtime. Overtime pays 1.5× your regular rate for all hours over 40 per week under federal FLSA rules.

Kentucky Income Tax Overview

Kentucky has a flat state income tax rate of 3.5%, but many of Kentucky's cities and counties also charge local occupational taxes — making Kentucky one of the more complex states for paycheck calculations. Louisville (Jefferson County) charges a 2.2% occupational tax, Lexington-Fayette charges 2.25%, and dozens of smaller cities have their own rates ranging from 1% to 2.5%. The combination of state and local taxes means Louisville workers pay about 5.7% total, and Lexington workers pay about 5.75%. Kentucky's standard deduction is $3,360 — lower than most states. Compared to neighboring Tennessee (no income tax) and Indiana (2.95% state), Kentucky's combined burden is notably higher for workers in major cities.

Frequently Asked Questions

What is the Kentucky state income tax rate for 2026? ▾
Kentucky has a flat state income tax rate of 3.5%. However, many cities and counties charge additional local occupational taxes ranging from 1% to 2.5%.
Does Louisville have a local income tax? ▾
Yes. Louisville (Jefferson County) charges a 2.2% occupational license fee on wages. Combined with the 3.5% state rate, Louisville workers pay about 5.7% total.
Does Lexington have a local income tax? ▾
Yes. Lexington-Fayette Urban County charges a 2.25% occupational license fee. Combined with state tax, Lexington workers pay about 5.75% total.
How does Kentucky compare to Tennessee for take-home pay? ▾
Tennessee has no state income tax, so Tennessee workers take home meaningfully more than Kentucky workers, especially those in cities with local taxes.

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