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If you live in KY, it will not be possible to get a refund for local and county taxes. As HalAl mentions, KY localities take out the exact amount of tax on your wages. KY localities only tax income where you work.
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.
Kentucky has a 6.00 percent state sales tax rate and does not levy any local sales taxes. Kentuckys tax system ranks 18th overall on our 2022 State Business Tax Climate Index.
Compute tax on wages using the 5% Kentucky flat tax rate to determine gross annual Kentucky tax. Divide the gross annual Kentucky tax by the number of annual pay periods to determine the Kentucky withholding tax for the pay period.
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.
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The occupational tax is imposed upon the privilege of engaging in business, profession, occupation, or trade within Louisville Metro, Kentucky, regardless of the legal residence of the person so engaged.
Compute tax on wages using the 5% Kentucky flat tax rate to determine gross annual Kentucky tax. Divide the gross annual Kentucky tax by the number of annual pay periods to determine the Kentucky withholding tax for the pay period.
Kentucky Payroll Laws, Taxes, and Regulations Both the employer and the employee pay these taxes, each paying 7.65% of the total tax.
Local income tax might be withheld on wages you earn inside city, county, and school district boundaries. If you live or work in an area that levies a tax, your wages will be taxed by that jurisdiction.
Kentuckys sales and use tax rate is six percent (6%). Kentucky does not have additional sales taxes imposed by a city or county.

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