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Resident employees-Employees who work and live in Louisville Metro, Kentucky, are subject to a tax rate of 2.2% (. 0220).
For employees who both work and live in Louisville Metro, the occupational fee/tax rate is 2.2% (. 0220). The only exception to this tax rate is for ordained ministers.
The tax rate is determined by where the employee lives. For employees who work in Louisville Metro, but live outside of Louisville Metro, the occupational fee/tax rate is 1.45% (. 0145). For employees who both work and live in Louisville Metro, the occupational fee/tax rate is 2.2% (. 0220).
The Jefferson County Occupational Tax is a 0.45% tax on wages for all workers in Jefferson County, signed into law by Governor Bob Riley on August 14, 2009.
This occupational license tax shall be measured by: 1. One and one-fourth percent of all wages and compensation paid or payable to every resident or non-resident employee for work done or services performed or rendered in Louisville Metro; and 2.
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Occupational license taxes may be imposed as a percentage of gross earnings (payroll) on all persons working within the city or on gross receipts or net profits on all businesses within a city. A flat annual rate may also be used by cities, which is often referred to as a business license fee.
The City of Louisville imposes a local tax of 2% on all income earned while resident and or working within the city limits. A reduced credit of 60% for taxes paid to other municipalities, which shall not exceed a maximum of one and two-tenths percent (1.2%) of the taxpayers taxable income in such other municipality.
Most (if not all) KY cities and counties administer their local income tax. It is not handled by the state tax dept.
The state of Kentucky (KY) has a statewide sales tax rate of 6%.
Resident employees-Employees who work and live in Louisville Metro, Kentucky, are subject to a tax rate of 2.2% (. 0220).

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