Kentucky changes 2026

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But lawmakers in several states including Oklahoma, South Carolina and West Virginia have continued their march to eliminate state income taxes. Taxing peoples wages is bad because it undermines liberty, Oklahoma state Sen.
0:22 9:41 Education horse industry manufacturing lots of different. Areas that people can excel. And findMoreEducation horse industry manufacturing lots of different. Areas that people can excel. And find really good paying jobs.
2025 Kentucky Standard Deduction: $3,270 2025 Kentucky Tax Rate: 4% of taxable income Formula: Wages for the pay period multiplied by the number of annual pay periods equals annual wages.
Prior to the election, all major news organizations once again considered Kentucky a safe red state; the state has voted Republican and by double-digit margins in every presidential election since 2000.
Kentucky has a flat 4.00 percent individual income tax rate. There are also jurisdictions that collect local income taxes. Kentucky has a 5.0 percent corporate income tax rate. Kentucky also has a 6.00 percent state sales tax rate and does not have local sales taxes.

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The individual income tax rate remains at 4% for 2025, but legislation is already in place to reduce it to 3.5% effective January 1, 2026. This systematic approach aims to eventually eliminate the state income tax entirely, positioning Kentucky among the nine states with no individual income tax.
The Kentucky Senate passed House Bill 15 earlier this month, with Beshears approval the final step needed to pass it into law.

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